At least not every major Hollywood studio is hating on Redbox these days.
Viacom's warm approach toward the master of overnight DVD rentals for a buck is a refreshing contrast to the legal barbs being volleyed between Redbox and Paramount's rival studios. Time Warner
Do the studios have a legitimate beef? Sure, DVD sales have tailed off during Redbox's ascent, but that could owe just as much to the popularity of video-sharing sites, cable programmers offering video on demand, and Netflix's
If Redbox is destroying the perceived value of the DVD, why are local multiplexes' revenues hopping, despite charging record ticket prices?
Besides, shouldn't Paramount's extension mean something? Viacom isn't stupid. It wouldn't cozy up to a company that might eventually put it out of business.
"The data from our initial trial period has been encouraging," said Dennis Maguire, worldwide president of Paramount Home Entertainment, in yesterday's announcement.
Traditional rental chains, on the other hand, have every reason to fear Redbox. It's a direct competitor with cutthroat pricing. Even Blockbuster
However, the studios have more to gain from working with Redbox -- and either realizing the joys of additional revenue streams, or improving the value of their DVD product -- than fighting against it.
Is Viacom doing the right thing by teaming up with Redbox, or is it sleeping with the enemy? Share your thoughts in the comment box below.
Longtime Fool contributor Rick Munarriz is surprised that the Winn-Dixie supermarket chain is the only retailer sporting Redbox kiosks in his hometown of Miami. He owns shares in Netflix and is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.