Friday, April 5, 2013, 10:07 AM ET|Posted by Will Richmond
I'm pleased to present the 174th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. There's no question video is moving to streaming and electronic delivery, but DVDs still have plenty of life left. That's what Redbox is banking on to get a foothold with its new Redbox Instant service, as CEO Shawn Strickland explains in this interview. Both Colin and I think it's a smart, albeit risky, strategy given the inevitable downward trend in DVD usage.
I see part of DVD's durability as due to Hollywood's windowing practices. Because of the multi-billion pay-TV window, licensing to networks like HBO, Starz and EPIX, major studios delay the availability of movies in SVOD services. The intervening home video access continues to give DVDs life. Unless and until Hollywood abandons the pay-TV window, DVDs will continue to have life. And since Netflix has essentially abandoned DVDs, there's a big opportunity for Redbox.
However, Redbox Instant has another problem, which is that its streaming content selection today is terrible, as Colin explains. That means prospective subscribers have to determine whether its worth the $3/mo or so they're effectively paying for it on top of the DVD value which is worth around $4-$5/mo. Colin and I are both skeptical. Even if Redbox Instant doesn't fly, we both see DVDs being with us for a long time to come.
Listen in to learn more!
Reminder: Colin and I will be at NABShow next Mon. and Tues. in our booth SU12907. If you're there and have a moment, please stop by to say hi.
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Video Research Around the Web
- TV's Looming Threat: 'Cord-Nevers' WSJ
- eMarketer: 200M OTT video service users by 2019. Could it be higher? nScreenMedia
- Magna Global: Programmatic Will Eat Half Of Display And Video Ad Budgets By 2019 AdExchanger
- Netflix and Amazon content spend to hit US$9bn Digital TV Europe
- When Do Viewers Commit to TV Shows? Netflix Reveals Data WSJ
- Digital-Video Use Increases In All Parts of Day - Nielsen Variety
- Brands Using Video Grow Revenue Faster, Study Says Mediapost
- Study: Most Millennials Don't Want to Cut The Cord Multichannel News