As if the Southern California economy weren't already hit hard enough by the current economic meltdown -- now the Los Angeles County Economic Development Corp. is warning about the economic impact of Redbox. In a report issued on Monday, the agency forecast that the $1-per-night DVD kiosk operator could cost the local economy $1 billion and result in the loss of 9,280 jobs in the entertainment industry with the corresponding loss of $395 million in earnings. The study found that reduced DVD rental and sales income resulting from the cheap kiosk operations would also have a ripple effect, impacting retail trade, accommodation and food services, health care and social assistance, professional, scientific and technical services, and manufacturing, among others. Contributions to health and welfare funds for entertainment industry members would be reduced by around $35.4 million. Further shock waves would be felt by state, county, and local government, whose tax revenues would be reduced. Redbox has continued to maintain that its kiosks allow consumers to rent more DVDs than they ordinarily would and keep them for more than one night. In an interview with today's (Tuesday) Hollywood Reporter, Redbox chief Mitch Lowe called the LAEDC study "problematic." He maintained: "Redbox is an engine for industry growth, increasing consumer interest in film and providing new revenue streams to studios."