Redbox is planning to sell movie tickets through its discount DVD rental kiosks, according to one Wall Street analyst.
Parent company Coinstar announced a new venture that it plans to test this year at an analyst briefing yesterday, but Coinstar wouldn’t identify the new business concept.
According to Wedbush Securities’ Michael Pachter, Coinstar “intends to sell movie tickets through its Redbox kiosks, helping its studio partners to drive higher-margin theatrical exhibition sales, while driving awareness of films that will ultimately come to DVD,” Deadline Hollywood reports.
Indeed, this move could improve relations with studios that have objected to Redbox’s business model if Redbox helps them boost ticket sales.
Earlier this year, Redbox ended its deal with Warner Bros. instead of agreeing to the 56-day delay the studio wanted to impose. Other studios, like Universal, make Redbox wait 28 days to rent its DVDs.