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Redbox Rentals Barely Impacts DVD Sales, Paramount Halts 28 Day Delay

by Caleb Johnson on June 17, 2010 at 05:15 PM

Paramount Strikes a deal with Redbox
Taking a stance different from those of other film studios, Paramount Pictures recently decided to allow Redbox, a $1-DVD-rental kiosk, to distribute its films on the same day they go on sale in stores. According to the Los Angeles Times, Redbox will pay Paramount about $575 million as part of the revenue-sharing deal, which runs through 2014. Other studios, like Warner Bros., Universal Studios and 20th Century Fox, don't allow Redbox to distribute their films until 28 days after the initial release date. So, why did Paramount agree? Rather than follow blind logic (i.e., that Redbox rentals would hurt new DVD release sales), Paramount conducted a 10-month study that showed rentals from the kiosks don't hurt the studio's bottom line.

Sony Pictures and Disney also offer their films through Redbox the same day they go on sale, so Paramount is hardly blazing any trails here. But, with this agreement, Redbox gains some solid traction in the DVD rental market. [From: The Los Angeles Times, via: NewTeeVee]

Tags: dvd, money, movies, Paramount, RedBox, rentals, top

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