Hollywood studios may not like the Redbox movie rentals cutting into their DVD sales, but is seems they aren’t alone.  Chain rental stores are now entering the fight against Redbox.  Some chain rental stores are kicking off campaigns against the low cost rental kiosks which are cutting into their retail sales.

Video Buyers Group is one such retail outlet which is fighting back.  This retail chain based in Minneapolis has 1,700 chain stores that are loosing DVD sales to Redbox.  The basic premise of their new marketing attack is that a movie rental store can offer a wider selection of DVD’s than a kiosk on a corner.

VBG is trying to cash in on the battle between Redbox and the studios over the release time of new movies.  VBG is hoping the studios refusal to allow Redbox access to the new films until a later date will make the rental stores more appealing to the consumer.  They are planning to use their ability to get access to the new releases first as an enticement to pull in the public to their stores for movie rentals.

At this point in time, Redbox can’t obtain new movie releases for 30 days after the studios put them on the market.  VBG and other rental stores have immediate access to these releases.  VBG is looking to use this time span to get a jump on the Redbox sales.  They are also offering freebies to their member rental stores such as posters and stickers.  Nonmember stores can have access to the same items for a minimal charge.

According to the president of VBG, Ted Engen, “This program underscores the advantage that traditional rentailers have.”  These movie rental stores believe that the Redbox rental kiosks only take away from the movie industry.  He compares the Redbox rentals to a bottle of pop claiming a night of entertainment is worth more than one dollar.

How effective this rental store versus Redbox campaign is remains to be seen.  Redbox, so far, has been arrow proof when it comes to the delay in movie access imposed by the studios.  There are other ways to get the new releases.  The studios aren’t the only resource for the new releases.  Redbox has been able to obtain the new DVD’s at the same time as the movie rental stores in the past.  This new VBG campaign may or may not work.  It will all hinge on how informed the consumer’s are on their options for movie rentals.

Source: InsideRedbox