Analyst says redbox looking into e-distribution

An analyst with D.A. Davidson & Co. in Lake Oswego, Ore., says DVD-rental kiosk giant redbox is looking to get into the electronic distribution of movies through SD cards, USB drives and portable media players, according to Home Media Magazine.

The analyst, John Kraft, says redbox won't "sit on the sidelines" as far as digital delivery and that he believes the company is looking into a partnership with a digital vendor.