Film Studios May Block DVD Rentals For One Month

Ponca City, We love you writes "The LA Times reports that in an effort to push consumers toward buying more movies, some major film studios are considering a new policy that would block DVDs from being offered for rental until several weeks after going on sale. Under the plan, new DVD releases would be available on a purchase-only basis for a few weeks, after which time companies such as Blockbuster and Netflix would be allowed to rent the DVDs to their customers. 'The studios are wrestling with declines in DVD sales while the DVD rental market has been modestly growing,' says Reed Hastings the CEO of Netflix. 'If we can agree on low-enough pricing, delayed rental could potentially increase profits for everyone.' Three studios have already tried to impose a no-rental period of about a month on Redbox, the operator of kiosks that rent movies for $1 per night, believing that Redbox's steeply discounted price undercuts DVD sales. Redbox has responded by suing the studios, seeking to force them to sell it DVDs simultaneously with competitors. Meanwhile, the company is stocking its kiosks with DVDs it can't otherwise obtain by buying them from retailers."

Comments

Redbox buying DVDs

[The_Wilschon]

My brother in law works for redbox, and sure enough, every time a new major film is released to DVD, he goes to every walmart in his area (and we're not talking just one county here) and purchases anywhere from several hundred to a couple thousand copies, starting at midnight. He then takes them home and one by one puts them into non studio-branded cases, then goes out and stocks the redbox machines he manages.

Re:Redbox buying DVDs

[Henry Pate]

Couldn't they just make bulk orders through a distributor such as Ingram Micro? Or is Ingram Micro being prohibited from selling to Redbox?

That's exactly what they did.

But... what happened now is that these studios (Fox, Universal and Warner Bros.) told not just the distributors (Ingram and Video Product Distribution) but also retailers like Best Buy and Wal-Mart to not sell to Redbox. That's restraint of trade. The studios have every right not to sell videos to whomever they want -- but those distributors and retailers can then sell to whomever they want. The studios should have no say in the downstream sales of the videos once they've been sold to the distributor, wholesaler or retailer. That's where the antitrust issue is. The studios are successfully controlling downstream sales.

Source - TechDirt

Re:RedBox Lawsuits - Copyright Misuse

[mabhatter654]

But the point is RedBox DOESN'T HAVE a contract and doesn't need one. They buy their rental licensed DVDs from distributors the same way any other video store does for fairly set prices by the studios. The studios singled them out and interfered with the free sales of the distributors by telling distributors to withhold shipments from RedBox unilaterally. Now to get their scheduled purchases, the studios want RedBox to sign special agreements... when lots of other little video stores from the same distributors don't have to.