Redbox Teams With CinemaNow

Posted Mon Nov 16, 2009 at 03:00 PM PST by

Redbox and CinemaNow have announced they’re currently testing a program to determine the consumer demand for digital distribution.

With a good chunk of the studios and most of the video rental world at its heels, Redbox needs all the friends it can get. CinemaNow, on the other hand, seems to be hooking up with just about everyone these days. Together, they’re hoping to gauge the mass market demand for digital delivery.

Frequent customers of Redbox kiosks, and those who buy certain prepaid packages, will be given gift cards that will let them redeem titles on Roxio’s CinemaNow service. Representatives from Redbox would not say how far reaching the initiative is, but they did state that the program started on October 29th.

“We think this is a space that we should be testing in and understand better,” said Paul Davis, CEO of Redbox’s parent company Coinstar. “It’s an interesting space that we’d like to explore.”

CinemaNow appears to be the company that will receive the most benefit from the arrangement. After the announcement last week that the CinemaNow service would be embedded into electronics sold at Best Buy, this move seems to cater towards a different, but just as noteworthy, demographic.

Source: Video Business

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Tags: Redbox, Industry Trends, CinemaNow (all tags)