Studios Say: 'No Cheap Movie Rentals For You'
Filed under: Disney, Lionsgate Films, Sony, Universal, Distribution, 20th Century Fox, Home Entertainment
In an apparent effort to stem the tide of consumer interest in their movies, 20th Century Fox has decided not to make their new releases available to a large, legitimate DVD rental retail operation. Reason? They're not charging enough.
That's the message I get from reading an article at Company Town, a Los Angeles Times blog. Reportedly, Fox "has instructed its DVD wholesalers not to sell discs to Redbox -- which is owned by Coinstar Inc. -- or other DVD kiosk companies until 30 days after they are released." Fox is not alone among Hollywood studios. "Many studios are wary of Redbox, whose business has doubled in the last year, because its kiosks rent out DVDs for just $1 per night. That undercuts stores with higher rental prices, Netflix and disc sales." Universal Studios is involved in a legal case with Redbox because the studio wants a 45-day window. However, EngadgetHD notes that Disney, Lions Gate, and Sony have agreed to deals with Redbox.
With DVD sales down, studios want to maximum their revenues from every source and, to be fair, waiting 30-45 days to be able to rent a movie for $1.00 doesn't seem unreasonable to me. But, though the big red machines have popped up outside convenience stores in my neighborhood, I haven't tried them out yet. Have you? Does it work as advertised? Are you a repeat customer? Why you do rent from Redbox rather than Blockbuster, Netflix, or your local video store? What's the biggest determining factor for you: price, selection, or convenience?
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Reader Comments (Page 1 of 1)
8-06-2009 @ 7:22PM
Rich said...
My gf uses Redbox about once a month, when she sees something she wants to watch (ie Chick flick while I am at work) that's not on our Netflix queue or wants to see right now.
It won't replace our Netflix account anytime soon, but it does fill that "walk by and ohhh I wanna see that" impluse you don't get with Netflix.
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8-06-2009 @ 8:34PM
Jason said...
Netflix on Demand, only.
I never know when I will have 2 hours to watch a movie and when I do I never know what I will be in the mood to watch (plus if I have to watch it with tha missus, sci fi is pretty much out)
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8-06-2009 @ 10:08PM
charlesv said...
I don't understand... Do the studios get a cut of the rental sale aside from the initial purchase price of the DVD? I used to work at an independent, and we sure as hell weren't writing any checks to warner
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8-07-2009 @ 8:51AM
Cates said...
The studios can do what they want. I will just wait the extra 45 days and THEN rent it for a buck! I use Redbox all the time as well as the lesser known DVD Xpress, also a buck a nite. Every Tues on the way to work I pick up the latest releases. The machines could be a little faster in vending but for a BUCK I can wait the few extra seconds as opposed to renting the same disc from Blockhead for $4. I cancelled BB online because all of the titles I wanted became very long waits. Pleeeez! If you are going to have a business that sells one thing make sure you have plenty of the item to sell/rent.
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8-07-2009 @ 11:24AM
undocked1 said...
I think this is silly for the movie studios. Often I will rent a movie from Redbox that I would normally not rent (or buy) because it is only 1$. But take my advice DragonBall is not worth even 1$.
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8-07-2009 @ 11:44AM
MAV2 said...
I agree with you undocked1. I was upset from just spending a dollar on that movie. I use redbox when I can't find a title at blockbuster, so it's pretty convenient for me. There everywhere now so it's hard not to try it.
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8-07-2009 @ 7:14PM
Ethan said...
When I'm at school, we'll make a trip to the nearest Redbox pretty regularly. It's perfect for us poor college kids who will occasionally have a dollar or two to spend, but can't afford to pay for Netflix month after month.
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8-07-2009 @ 12:57PM
ICON! said...
I often rent from REDBOX and it does fill that impulse of walking by and going "HHMM, let me see" its a nice alternative to things. It may not have the huge selection that the rental stores have but it does have all the new releases and you can get it for $1 as aposed to $4-5 at the rental store. The few kiosks in my neighborhood always have lines and it appeals to that demograph that doesn't have a computer,netflix account, or the money to rent from the stores. Im in Vegas and the rental stores are all but dead, no one goes to them. I say fuck these money hungry movie studios...this is lame..30-45 days..fuck them is waht i say!!!
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8-07-2009 @ 3:11PM
Mike said...
I use redbox fairly regularly. I still have my Netflix account and on demand, but most new movies aren't on demand. And as stated by other people, why pay $4 when it's just a dollar to pick up a new movie that might not catch my attention otherwise, quick skip after fueling or grabbing a drink and I'm home with a movie for the night.
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8-07-2009 @ 2:50PM
EbonyDad said...
I like the concept of Redbox. They won me over when I found out you can rent a movie at one kiosk in one city, and return it to another kiosk in another city.
This worked out great when I had to drive between Dallas and Houston. I let each of my kids pick one DVD they could watch on the trip. When I got to my destination, we took the DVDs back to a random redbox we saw.
I say it is great for instant gratification.
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8-07-2009 @ 6:00PM
JMF said...
If studios stopped making crappy movies and focused on better titles, maybe they'd sell more. And if they're not going to release DVDs to Redbox, you can get them even cheaper off torrent sites. Honestly, who do they think they are fooling? To hell with Fox.
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8-08-2009 @ 1:56AM
YouFaceTheTick said...
Redbox is too expensive and inconvenient. Netflix is our only choice for rentals.
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8-09-2009 @ 2:48PM
Argonaut said...
Here in Utah the Redboxes are everywhere. They are very popular. While I have a Netflix account, I will use them for spontaneous rentals. Many places have two or more units right next to each other. They are fast and you can reserve a movie. No dealing with stupid Blockbuster employees. There are often lines to check out. Another nail in the coffin for Blockbuster.
Fox will eventually be forced to remove their pay-walls and other barriers. For the casual DVD renter this is a great option. Four movies per month is only four dollars compared to much higher fees at Netflix. Your cost-benefit per unit rented all depends upon your volume.
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