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Redbox may be ditching 28 day new release delay for Warner titles

Written by Rich Fiscus (Google+) @ 21 Dec 2011 8:59 User comments (2)

Redbox may be ditching 28 day new release delay for Warner titles As rumors fly that Warner is trying to delay new releases in Redbox kiosks by more than two additional weeks, one analyst is suggesting they are overestimating their leverage.
The introduction of 28 day delays between the time titles are released for sale and when they are offered for rental is a scheme the studios came up with in 2009. It is intended to be an incentive for consumers to buy discs which can't yet be rented.

Although Netflix was the first company to agree to these windows, Redbox was the studios' primary target because of their presence in major retail chains. Not surprisingly, disc sales have not made the resurgence predicted by the studios.

The deals were pushed through largely by backroom deals between the studios and companies supplying discs to rental outlets. According to Eric Wold, an analyst with B. Riley & Co, over the last several months Redbox has worked out a strategy to get around those arrangements.

Home Media Magazine recently reported about an investor note in which he wrote:

While Redbox was forced into a workaround two years ago on minimal notice, the workaround plan developed since that time has been developed as a long-term replacement to a studio agreement (with copyright law in the company's corner).


Wold went on to say Redbox's new, alternative arrangement would allow them to offer a selection of the most popular new releases without Warner's blessing, and while their cost per disc would rise, ultimately so would their profits.

In other words, both the carrot and the stick used by Warner to entice Redbox into making their current deal will likely be inadequate to convince the kiosk giant to extend it. Ultimately that's the best thing for consumers who are currently being punished for Hollywood's greed.

What will happen next is anyone's guess. Hollywood's history suggests Warner will make demands up until the last minute and perhaps offer a bigger discount to get what they want. However, the lure of offering new releases before pretty much every other rental outlet may be too much to overcome.

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2 user comments

123.12.2011 1:17
llongtheD
Inactive

Maybe if Hollywood focused on making good ORIGINAL movies again, and stopped trying to screw the consumer they'd make more money, Hmm. Not all, but a lot of the movies coming out are either remakes or overly cgi'd crap with no actual story, and no re-watch value. Just like the music industries formula music, these formula movies have grown tired.
I think I can wait a month to watch their crap and decide to buy if it's worth it. What ever happened to producing a good product, and selling it at a fair price?

213.1.2012 8:45

Originally posted by llongtheD:
Maybe if Hollywood focused on making good ORIGINAL movies again, and stopped trying to screw the consumer they'd make more money, Hmm. Not all, but a lot of the movies coming out are either remakes or overly cgi'd crap with no actual story, and no re-watch value. Just like the music industries formula music, these formula movies have grown tired.
I think I can wait a month to watch their crap and decide to buy if it's worth it. What ever happened to producing a good product, and selling it at a fair price?
Its sad when it seems that TV shows are getting better writing then Movies.

Account Created Saturday 12 January 2008. After 6 years I consider myself a Sr. Member no matter WHAT my post count says.

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