Redbox Blu-ray rentals likely to be $1.50

[jw]

From HMR

Redbox president Mitch Lowe said the kiosk company would likely bow Blu-ray Disc rentals at $1.50 a night, a premium over the chain’s traditional $1-a-night DVD rental.

Blu-rays will start appearing in Redbox kiosks over the next few months, he said.

Lowe made the announcement during a keynote speech at the Entertainment Supply Chain Academy Edge conference today.

Lowe said 16.9% of Redbox customers own a Blu-ray player and that he believes Redbox’s 23% share of the rental market will help drive Blu-ray adoption.

Citing NPD Group data, Lowe noted 20% of Redbox customers say they would not have bought or rented a certain DVD if it were not available at Redbox. He also noted 41% of Redbox customers rent before they choose to buy a certain title, with 9% of those rentals resulting in a sale.

He said Redbox was actually helping the studios’ sellthrough business, rather than harming it.

“We’re going to be driving awareness of your product to purchase where we’re at,” he said.
Lowe also said Redbox will soon test sellthrough of catalog titles for $5, $7 and $9. He said Redbox renters buy 6% more new DVDs than non Redbox renters and that heavy Redbox renters (those renting once or more a week) buy 42% more than non Redbox renters.