RED LINING REDBOX…

Back in December I wrote about the possibility that DVD Kiosk operator Redbox was sourcing new DVD releases through Walmart to do an end-run around distributor restrictions. Frankly, I didn’t take the threat seriously, but it looks like Walmart (and Target) has.

From Home Media Magazine:

Wal-Mart Stores and Target Corp. have apparently begun limiting quantity purchases of new-release DVD movies to five copies per title — a move that further underscores an emerging sellthrough window and could pose a serious challenge to rental kiosks.

The world’s largest retailer, and Target, which represent two of the largest retailers of new-release DVD and Blu-ray Disc movies for the studios, instituted the policy Jan. 26 in time for the weekly new releases, according to Ted Engen, president of the Video Buyers Group, which represents more than 1,000 video stores.

What I’m wondering how this will play out with YouTube’s entrance into the downloadable movies market. Will there even be a market for brick-and-mortar (resin-and-foil?) DVD’s in a year?

Jeff Hess: Have Coffee Will Write.

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