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The New Release DVD Kiosk Insider Speaks Out

In response to dozens of complaints and unsatisfied consumer comments on our $1 DVD Rentals article, an industry insider is speaking out.

As someone who was involved very, very early with this industry and helped The New Release (TNR) get off the ground, I thought I’d provide an insider’s view of the industry and TNR in particular.

This all started as an experiment to bring customers back to McDonald’s more often, circa 2001. The kiosks were placed outside the stores on separate islands and were miserable failures.

TNR was formed (really in 2003) after investigating the European market, where these dispensers are the standards.

TNR had over 300 dispensers in grocery stores before McDonalds (aka RedBox) had placed even one outside a McDonalds restaurant. Redbox saw the success TNR was having in grocery stores (which really is the best part of this whole thing) and away they went. DVDPlay, the Safeway kiosk provider, began as a manufacturer.

When TNR was young, we provided outstanding customer service. I remember sending someone to a customer’s home to pick up a DVD because they were sick and couldn’t get to the store! We ALWAYS erred on side of giving customers their money back.

Then “big money” came in, causing TNR to hire new management and develop aggressive growth plans. Suffice to say, the new management was terrible.

It breaks my heart to read of the above problems, and to see that Redbox has surpassed TNR by such a huge margin. To think that TNR really launched the grocery store market and that, now, people refer to all kiosks as “Redbox”. I guess you have to give the Redbox folks some credit.

Fast forward to 2008. Obviously, TNR (and DVDPlay) are struggling and Redbox is expanding aggressively – including 3200 WalMarts to come.

…

If you would like to read the full comment, you can check it out here.

Amazon the latest to offer digital delivery

Amazon.com has begun beta testing their own video-on-demand (VOD) service with approximately 40,000 movies and TV shows for rental or purchase. This service should provide most major studio content except Disney (who is locked in with iTunes). Specific titles are not known at this point.

Amazon uses a proprietary download service called Unbox which uses their own software but it limited to PC (much like Netflix). They have also worked a deal with Sony to bring Unbox to the BRAVIA Internet Video Link which connects to their LCD televisions and uses a wireless connection to access online video. This device sells for $300 and only works with Sony BRAVIA LCD TVs and the menu shows up on the TV’s Xross Media Bar (XMB).

There is nothing reported, but it would be cool if they also worked it into the Playstation 3 as a response to Netflix on the Xbox 360. Of course Amazon’s Unbox seems like a direct competitor of Sony’s new video store.

Pricing is not available, and there is no mention of a subscription service.

Source: Home Media Magazine

TiVo adds YouTube

This is certainly a big week for digital delivery. First we hear that Netflix will stream to your Xbox 360, and then Sony adds video downloads to the Playstation 3, and now it’s TiVo’s turn.

YouTube videos will be available on Series 3 DVR units. Users will search for YouTube videos through their TiVo interface on the TV. They will soon make your YouTube account accessible for personal videos, channels and playlists.

A software upgrade for existing units will be available soon.

Sony Why Blu? sweepstakes contest

Sony Pictures Home Entertainment has launched a contest to create a poster or video promoting Blu-ray Disc. The grand prize winner receives a Playstation 3, $250 cash, and eight Blu-ray movies including Surf’s Up, Open Season, Across the Universe, Hitch, Fifth Element, Hellboy, A Knight’s Tale, and 50 First Dates. The winner is selected from the top 50 rated entries.

Another prize is given for “most viral” selected from the top 50 most viral entries. Not sure how they’re qualified. The prize package is identical but without the PS3. There is also one prize given away randomly, winning the same Blu-ray package and $150 cash.

Sony provides a few videos, logos and dozens of still images for entrants to utilize. They require using a logo in the entry.

To enter, visit the website: Why Blu?

Sony launches video delivery on PS3 tonight

Contrary to previously reported news, it appears as if Microsoft has an exclusive deal with Netflix for the Xbox 360. While this is certainly a victory for Microsoft, Sony does a bit of catchup by launching their own video rental store for the Playstation 3.

Launching tonight, the service will be accessible through the Playstation Store on the PS3. More than 300 movies from Warner, Sony, Paramount, Fox, Lionsgate, Disney and MGM are available for rental in standard definition. Many of those will be available in high-definition as well.

Additionally, more than 1200 television episodes will be available.

All content will be available to rent, and will be available to watch for 14 days, but must be finished within 24 hours of first play. Way to go! Much better than the 24 hours you get through other services (like Apple TV). Rentals range from $2.99 to $5.99. Much of the content will be available for purchase as well. Unfortunately no Disney titles are up for sell-through. Prices range from $9.99 to $14.99.

Marlin Digital Rights Management technology was adopted for the downloads. This is an open-source standard for DRM and will allow the content to be moved to a PSP via USB cable for viewing on-the-go.

While they are playing catchup with Xbox Live, it looks like a strong effort right out of the gate.

Source: Sony press release

Images of the store from E3 at Gizmodo

Netflix Watch Now coming to Xbox 360

Announced today at E3: the Microsoft Xbox 360 video game console will soon feature Watch Now movies from Netflix. The standard Netflix subscription applies.

This is good news. No additional purchase required for those with an Xbox 360 already. This will come with a software upgrade later this year when Microsoft revamps the Dashboard.

Also available through the new Dashboard is “Live party” where you can have up to eight people in a chat at a time. With Netflix you can start a movie and it can stream to all members of the party simultaneously. No word on if all users must have Netflix for this to work.



The video quality is identical to the Roku standalone player. This means it’s highly compressed standard-definition. Netflix claims to be transitioning to HD, but I wouldn’t expect that until middle of next year.

Keep in mind: the 20GB Xbox 360 Pro is on sale for $299 until supplies run out.

Image sourced from: Gizmodo

DreamStream DRM for online video appoved for use

In the battle against piracy, the Motion Picture Association of America (MPAA) has assessed a new DRM specification utilizing a 2048-bit encryption. DreamStream, the developer of the technology, claims this technology is “military grade” and has never been cracked or exploited.

The chief development officer for DreamStrem, Ulf Diebel, was very pleased to find the approval of the MPAA.

We are very excited to have the MPAA stand behind our technology. The MPAA understands the need to be proactive – rather than reactive — in addressing the chokehold that piracy has on the motion picture industry. Their recommendation is not something that Hollywood will take lightly.

The digital rights management (DRM) technology developed by DreamStream will be used for streaming online video. Encrypted video does not download to the end-user’s computer, instead it will be viewed from the remote server. This doesn’t seem like it should work because video capture software doesn’t care if the displayed video is streaming, analog or saved. Perhaps DreamStream is an obtrusive software package that cripples the user’s computer while playing video?

Another aspect of the DreamStream technology seems aimed at protecting the server from hacker invasions.

Hacker attempts are no longer measured in how many per day but how many per second. It is just a matter of time until the pirate comes aboard your ship and breaks into the treasure chest. Unless they cannot see the ship. With DreamStream, your digital information is invisible. Your treasure chest is secured, and the key to it is encrypted with a 2048 bit encryption.

And then maybe this is good news for Blu-ray. With cumbersome software, the end-user may stick with optical media long enough to make it survive long-term. DreamStream claims HD-quality content with no delays, but the US is simply not ready for millions of streams of high-quality video through the existing infrastructure.

And how can you trust a company that thinks VMD will prevail against Blu-ray?

When is XstreamHD launching again?

Source: AfterDawn (update)