JUNE 3, 2010 • Redbox announced that it would be adding Blu-ray titles to its rental kiosks during the next few months. The high-definition discs will be priced at $1.50, compared to $1 for standard DVDs.

Impact: Consumer rental of discs is one of the biggest signs a format has reached the mass consumer, and priced at only $1.50 per rental it will surely get traction from Blu-ray owning consumers.  While physical media may die off in the long term, it is still a viable market today and once the PlayStation 3 reaches the $199 price point we expect to see additional demand from consumers who would buy it for the movie viewing/gaming combination. Sony has long promised that Blu-ray would be a standout feature for the PS3.  Now that Blu-ray is starting to reach the mass market we tend to think that the Blu-ray feature is increasingly becoming an important distinction between the PS3 and competing systems.