Inside DVDPlay

I just posted about this on Inside Redbox, but wanted to post it here as well…

This must be lawsuit week…

In a bold move, DVDPlay filed a lawsuit today against Redbox and Coinstar (separately) for patent infringement.

I dug into this a bit, and found that DVDPlay filed for this patent on May 25, 2000, and it was just issued today (Oct 28, 2008). So, it has been over 8 years since the patent application was filed.

In addition, I know that Redbox got its start by using (via lease?) DVDPlay-made machines before they started having their own manufactured in 2004.

So, the question is, does DVDPlay have a chance at winning a case like this when they previously worked with Redbox voluntarily?

It seems to me that DVDPlay is grasping at anything it can to get additional money for their currently failing operation. With Redbox and Coinstar leading the pack, perhaps DVDPlay sees them as a target with deep pockets.

Also, how will this patent and these cases affect Blockbuster’s plans?

I would love to hear any thoughts you may have on this, so please comment below. If you are a lawyer (or play one on TV), please let us know what you think about DVDPlay’s chances here, as well as their possible motivations.

You can view the patent here, as well as more info on the court filing here. I will post more info as soon as it becomes available.

What are your thoughts?

DVDPlay has added a new promotion for their frequent renters - Rent 10, Get 1 Free…

They hope this new program will help them gain on the #1 DVD Kiosk, Redbox, by bringing customers back to their kiosks more often.

DVDPlay CEO Chuck Berger had this to say: “We are thrilled with the success we’ve enjoyed over the past year, and we want to give back to those who helped us get here.” [from Videobusiness.com]

This sounds like a great program. Loyalty programs are good for both the company who implements them as well as consumers. I don’t think it will be enough, though. As Redbox ends up in more and more markets, how can DVDPlay compete?

As of right now, DVDPlay has about 1,400 kiosks, while Redbox has about 7,400.

What do you think? Does DVDPlay have any chance of catching Redbox?