Red Box, Netflix Fight Disney Over New Release Delay - Because Stupid Rules Will Keep the DVD From Dying, Right? on day true story

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Red Box, Netflix Fight Disney Over New Release Delay

Because Stupid Rules Will Keep the DVD From Dying, Right?

Last February Warner Brothers convinced Netflix to delay new release DVDs by 56 days -- and got Netflix to prohibit users from even adding upcoming releases to their queue until 26 days after release. Studio executives believe this will drive users to buy more DVDs, but as everybody except for the entertainment industry has figured out, simply acts to annoy users and drive them to explore piracy.

Earlier this year Red Box refused the 56 day new release delay, and decided to renew their contract with Warner Brothers, instead getting movies from retail as they go on sale. Disney recently joined the fun, trying to prohibit Netflix and Red Box from offering DVDs for a month after release. However, both Netflix and Red Box appear to both finally be getting bored of this game, and are fighting Disney:

Disney is the only studio at loggerheads with Netflix over the window issue, but it's not the only one fighting with Redbox. The kiosk rental company refused to accept Warner's demand that it wait 56 days to rent new releases, as its business is heavily dependent on having fresh movies. It is now stocking its machines with Disney and Warner discs that it purchases from retail stores. Such negotiations ultimately amount to a high-stakes game of chicken. Under the "first sale" legal doctrine, studios can't forbid companies from renting DVDs that they legally purchase.

By not selling them bulk discs unless they sign annoying agreements, it's another way for studios to ramp up costs for innovative new content companies (alongside licensing). The problem is that studios have in turn been going to retailers and forcing them to limit the number of discs that companies like Netflix and RedBox can purchase. It's yet another example of an industry refusing to innovate in the face of evolution (in this case, broadband video and the death of physical media), instead resorting to anti-competitive and often self-destructive tactics in the hopes they can keep things as they are.

It will be interesting to see if RedBox remains tenacious on this front later this year as they push harder into the streaming business in their joint venture with Verizon.

Re: They cant stop them.

Huh? (Best Buy -> retail, not rental)

Not sure what you're tryin' to say here.

Re: They cant stop them.

said by GlennAllen:

Huh? (Best Buy -> retail, not rental)

Not sure what you're tryin' to say here.

Netflix and RedBox buy from retailers to get their cache of rental DVD's. But Disney won't sell anything to any retailers until 28 days are past. Meaning, no matter what RedBox does, they have to wait at least 28 days. That is better than what Disney wants to make them wait in order to get a discount, but they stiil have to wait at least 28 days.

Re: They cant stop them.

said by vpoko:

Say what? 28 days past when?

When it debuts in theaters.

Re: They cant stop them.

said by GlennAllen:

Sorry, but were you not paying attention to who posted what?

It did not say you were replying to anyone else. I retract my previous comment since you are now saying you posted in reply to that other poster.

Your article says nothing about limiting DVD sales at Best Buy?

said by rtfa :
The problem is that studios have in turn been going to retailers and forcing them to limit the number of discs that companies like Netflix and RedBox can purchase.

Does anyone read the articles anymore??? They are not going to delay DVD releases at retailers.

Redbox will be blocked by Disney from buying DVDs to rent.
Redbox instead can go to Best Buy or other retailers and buy the DVDs there at launch with no wait.
Disney is trying to get retailers like Best Buy, Walmart, Target, etc. to limit how many DVDs they sell to a person to prevent Redbox from sending over an employee to buy their entire stock of a DVD.

As I said this will not work as any Best Buy manager will gladly sell their entire stock of a DVD to a Redbox employee to get their store numbers up. No matter what policy corporate BB sets, their managers will ignore it to get their numbers up.

Re: Content Creators Win

said by pnh102:

Disney wins with this one as this rule actually will drive up DVD sales, even if Redbox is buying them.

yea redbox buys 1 DVD and rents it 100 times. That's not quite the same as 100 people buying 1 DVD each.

Re: Content Creators Win

said by GlennAllen:

Of course, 50 or more of those 100 could rent it and then decide they want to buy it because they liked it so much--which a lot of people do (rent it cheap to watch in order to decide whether or not to purchase). I mean, I won't normally buy a movie I've never seen, but I might buy one that I have if I like it enough.

So then it would behoove Disney and the others to let RedBox rent them SOONER.

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Re: Content Creators Win

said by BF69:

said by GlennAllen:

So then it would behoove Disney and the others to let RedBox rent them SOONER.

Exactly its effectively 100% profit advertising for them, someone pays Redbox or Netflix to see the movie. Disney gets a cut of the rental cost and the possibility of a buy. because lets face it most kids will want to keep renting a disney film over and over and over and over and eventually the parents will just drop the cash on their own copy.
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Re: !

I do buy some discs, but I do it on my schedule, not the studios'. They seem to think that, by not making a movie available for rental, people will feel that they must got out and buy it. Not me. I have lots of movies at home already, so, if a title isn't available, I'll either rent another one, watch one I already own, or just do something else.

This is yet another example of the studio execs thinking that anything they produce is gold. No, it's an entertainment OPTION, and that's all it is. People have a gazillion things competing for their time, attention, and money. There are always alternatives.

And, again, these idiots don't see the connection between pissing off people and increasing levels of piracy. When you do things to intentionally make people's lives more inconvenient in order to extract more money from them, they get annoyed, and some of them are more likely to pirate, if only because they feel like they're getting revenge on the studios. I'm not saying it's right, but it's what happens.

Re: The bad part

said by dvd536:

About using redboxes in walmarts are you get "sanitized content" versions of the movies.

What do you mean?
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Redbox notify

Whether its a day or 100 days, i'll put a title on notify and they'll email me when its in their boxes.

disney has got to be the worse violator of the crap and unskippable shit.

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the part about the neflix queue is ridiculous

I don't really care about the launch delay. If I have to watch later, so be it. There will still be a steady stream of things to watch, no matter what. If it was a really good movie, chances are pretty fair that I saw it at a theater.

However, interfering with my queue is messed up. I used to enjoy going to boxofficemojo and rightclick-netflix-search titles to add to my queue. These would show up as "saved" and, upon release, would go into my regular queue.
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