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Movie Studio Finally Sees the Light On Rentals

Posted by Soulskill on from the turns-out-wishful-thinking-is-a-bad-business-model dept.

Griller_GT writes "After months of conducting studies about the effects of delays on sales of DVDs, 'Paramount Pictures has agreed to provide its movies to Redbox on the same day they go on sale.' A Paramount exec said, 'Those people who want to rent are going to figure out ways to rent, and us restricting them from renting isn't going to turn it into a purchase.' Gee, who would have thought of that?" Reader DisKurzion sends in news of another movie business experiment underway by an Australian company called Distracted Media. They are raising funds for a movie called The Tunnel by letting people invest in individual frames for $1 apiece. When the movie is complete, it will be released for free on torrent sites.

34 of 213 comments (clear)

  1. First Rental by TheNinjaroach · · Score: 3, Funny

    Woohoo! On the same day of release.

    --
    I went to eat some animal crackers and the box said, "Do not eat if seal is broken." I opened the box and sure enough..
    1. Re:First Rental by commodore64_love · · Score: 3, Interesting

      It's funny how executives' thinking changes over time. Back in the days of VHS (early 90s) they had the opposite view - Release rentals first, and release Purchase copies a month later. Of course you could buy the VHS if you really wanted to, but the cost was kept high at $80, $100, or even $120 in order to discourage purchase by average people.

      I remember wanting to buy Star Trek The Undiscovered Country, and the store clerk handed it to me and said, "That will be $84.80," and my mouth dropped open. He then told me if I come back a month later I can get it for less, and sure enough it dropped to a reasonable $25.00.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    2. Re:First Rental by Spellvexit · · Score: 3, Informative

      I worked at a video store when I was in high school, and every once and a while some customer would lose a copy of their new release. When we finally caught up to them, a month or two down the road, we would inform them that they owed us $90 for the actual video. Sometimes we'd be selling the same movies on our shelves for $35, since we had since bought more to sell to customers at a reasonable price point. The copy *they* lost was the $90 "new release" video, however. The logical arguments that ensued from this disparity were ugly, I tell you!

      --
      The moon may be smaller than the earth, but it's much farther away!
  2. They're finally starting to get it by SweeBeeps · · Score: 3, Insightful

    Alternative distribution methods are definately here to stay. Companies like Blockbuster (who may just consider this another coffin nail) had a purpose 10-15+ years ago, but were incredibly slow to react to market changes (Netflix in particular) and are all having rather violent death fits (they're using the last of their influence with the big production companies to try and force Red Box to carry childrens movies only or not carry any new releases).

    1. Re:They're finally starting to get it by ma1wrbu5tr · · Score: 4, Insightful

      Refusing to make content available to low-cost vendors encourages piracy. Plain and simple.

      I'll never pay .99 cents a song to iTunes when there are other cheaper and legal options out there anymore than I would pay the now defunct Hollywood video $5 for a rental when I can get it elsewhere for $1. I'm willing to wait!

      To a similar end, I have dumped DirectTV's crooked asses and replaced them with a Netflix subscription and a digital converter box to get broadcast channels. Why would I pay $75 a month for commercial laden TV? What good are 120 channels if they are paid programming 8 hours a day?

      The entertainment industry might be finally getting with the digital age, but still seem to have trouble doing math. Perhaps they should ditch the abacus and get a calculator.

      --
      Why can't we go back to using jumpers to configure slot adapter cards? Why? I say!
  3. Something seems off by Anon-Admin · · Score: 3, Informative

    Most movies cost $800,000 + to shoot. At 1$ a frame and 24 frames a sec, a standard 190 min movie only comes out to $273,600. Seems low

    Remember, Hollywood movies can cost from $10,000,000 to $100,000,000 to shoot and produce so compared to that it is nothing.

    1. Re:Something seems off by CarpetShark · · Score: 5, Insightful

      Remember, Hollywood movies can cost from $10,000,000 to $100,000,000 to shoot and produce so compared to that it is nothing.

      Remember, what big companies put on paper as "costs" after tax evasion, big bonuses, and drug-fueled parties isn't much to do with the actual costs of a project.

    2. Re:Something seems off by 0100010001010011 · · Score: 5, Interesting

      One of my favorite movies, The Man from Earth cost $200,000.

      It had 0 CGI, no big name actors but a kick ass story from Jerome Bixby.

      Paranormal Activity was made for $15k and grossed $9M the first weekend.

    3. Re:Something seems off by Rogerborg · · Score: 3, Interesting

      Tru dat. if a set on a [Warner Brothers] movie burns down in Botswana, they can charge it against [Babylon 5's] profits. $1 billion dollars gross revenue and rising, and Babylon 5 is still listed as a net loss.

      --
      If you were blocking sigs, you wouldn't have to read this.
    4. Re:Something seems off by ma1wrbu5tr · · Score: 3, Insightful

      Remember, Hollywood movies can cost from $10,000,000 to $100,000,000 to shoot and produce so compared to that it is nothing.

      How much of that cost goes to pay made up positions like "Associate Producers" and others who really contribute nothing to the project?

      --
      Why can't we go back to using jumpers to configure slot adapter cards? Why? I say!
    5. Re:Something seems off by iluvcapra · · Score: 3, Informative

      How much of that cost goes to pay made up positions like "Associate Producers" and others who really contribute nothing to the project?

      For the record, APs work their asses off, and usually earn that credit by doing the line producing or post-production supervision, and are themselves usually one promotion over the coffee gofers and runners. It's miserable and unglamorous work and as a technician I have nothing but respect for them.

      You might be getting confused between Associate Producers and Executive Producers, but even they sometimes work very hard, or if they don't work on the film they at least are risking millions of dollars of their own money. Everybody's different of course.

      --
      Don't blame me, I voted for Baltar.
    6. Re:Something seems off by bill_mcgonigle · · Score: 2, Interesting

      Oh, I just had an old-guy moment and remembered people don't build sets anymore. OK, so hire a greenscreen stage for a few days and get a freelance digital set designer to work for you for a few months. No union crap to load down your production.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
  4. Asmounding! by CarpetShark · · Score: 2, Insightful

    So, you mean, I can now drive to a store and rent the DVD/Bluray of a movie on the same day as I can buy it in a store, six months after I could download a virtually complete and much more interesting workprint release?

    Wow, this is real cutting-edge tech they're bringing to consumers. Who wouldn't want to pay through the eyeballs for that?

    1. Re:Asmounding! by jeffmeden · · Score: 5, Insightful

      Is a $1 (perhaps $1.50 or whatever bluray ends up costing at the 'box) really "paying through the eyeballs"? That's the big deal here, it used to be that Blockbuster was the only outfit to rent from, and new releases are regularly $5 or more per day from them. Now, the 'box will rent them for $1 or so, and you can find one at tons of convenient places and there's no pimply guy behind a counter to eye you for renting a chick flick (or even require a voided check, social security card, and fingerprint before 'allowing' you to be a customer). Just swipe any credit card and you get your movie. Digital distribution may be a little ways off yet, but this is surely a step in the right direction (and away from overpriced brick and mortar rental places.)

    2. Re:Asmounding! by DamienRBlack · · Score: 2, Insightful

      Yes I see it now. Someone with a black mask and flashlight breaks into a house, looks and the jewels, takes some photos and then goes home empty handed, leaving the jewels. He used a technologically advanced 3D printer to recreate his own copy of the jewels. Theft! How dare he! What is he doing? He is the vilest of thieves, duplicating other peoples property. /sarcasm

      For the record, downloading movies or music is copyright infringement, not theft. Illegal? Yes. Theft? No. I'd like to see a prosecutor try to make the case that duplicating and distributing copyrighted material is theft. It would be laughable. Their case would be summarily thrown out.

    3. Re:Asmounding! by IshmaelDS · · Score: 2, Insightful

      That's not really changing it. That's cutting $1 off the price and a day off the rental and changing the wording. If it's $1 a day for a min of 4 days than it's a 4 day rental for $4 dollars. It used to be $5 for 5 days.

      --
      letting an idiot know they are an idiot is not a game... it's a responsibility. - by Kristopeit, M. D. (1892582)
  5. About time! by eihab · · Score: 3, Insightful

    It's about time movie studios started realizing that. I'm a rental-convert and have been renting my movies for almost 2 years now.

    I have a shelve full of DVDs and VHS tapes that are collecting dust. Most movies aren't worth re-watching and it seems ridiculous to purchase things you're only going to watch once.

    I still buy DVDs, but I only buy movies that I know I will watch again (e.g. The Matrix, God Father trilogy, etc.).

    Everything else is on the Netflix queue, and if it takes 10 months for me to finally see it, oh well, so be it.

    Case in point, I was looking forward to watching Ninja Assassin because the previews looked good and it has the "Wachowski brothers" stamp on it.

    When it finally reached Netflix and my mailbox, I was extremely excited... extremely excited that I didn't go out of my way and buy it. The movie was a piece of junk in my opinion, and it would not even be on my shelve collecting dust with other DVDs.

    tl;dr: Renting Movies "FTW".

    --
    If you can't mod them join them.
    1. Re:About time! by Locke2005 · · Score: 3, Interesting

      You're missing the point of buying DVDs: start a co-op with 19 of your friends. Take turns buying new movies as soon as they are released, and share them with friends. You're not paying the overhead of a for-profit distribution company like Netflix, and it's perfectly legal.

      --
      I've abandoned my search for truth; now I'm just looking for some useful delusions.
  6. "Unthinkable", another weird movie studio story by sammyF70 · · Score: 5, Interesting

    funny how stories tend to come in packs. The Movie "Unthinkable" was ranked #3 at IMDB prior to the release of the DVD/BR (it was a straight to video release). The producer ended up asking on the IMDB forums the people who had rated it where they got it from and about ideas on how to make things fairer for both sides.
    As someone who saw it ~early~ too, I can only urge you to watch it (if possible through a legal rental or by buying the DVD or BR ... it IS worth it), as it is a really interesting movie.
    I wonder whether this and TFS are linked somehow.

    --
    "DRM is like the Ford Pinto: it's a smooth ride, right up the point at which it explodes and ruins your day."-C.Doctorow
  7. Nice, keeping up with the times by jollyreaper · · Score: 3, Funny

    Obligatory from the Onion.

    http://www.youtube.com/watch?v=3TrPwOrf4sM

    Blockbuster Offers Glimpse Of Movie Renting Past

    --
    Kwisatz Haderach
    Sell the spice to CHOAM
    This Mahdi took Shaddam's Throne
  8. I work for a video rental store by Supurcell · · Score: 4, Interesting

    In the last couple years, there have been a ton of retail exclusives. There are a few distributors who won't sell us movies that have some bogus exclusivity, but you know who will? Best Buy. We just buy em there, and rent em out just like anything else. The only thing we can't effectively get a large quantity of are the Netflix exclusives, but those are usually more obscure movies(which my store specializes in).

    What I really hate are the "Rental Exclusive" editions of movies which have long, unskipable previews before the movie.

    1. Re:I work for a video rental store by Anonymous Coward · · Score: 2, Informative

      What I really hate are the "Rental Exclusive" editions of movies which have long, unskipable previews before the movie.

      Posting anonymous so I'm not karma whoring, but there was a LifeHacker article some weeks (months?) ago that said there's a good trick that works for many DVDs and DVD players (granted, not all of them)... to skip all the crap at the beginning of a disk, once it's started, hit STOP-STOP and then PLAY. Many players will start up the main title. I know this has already saved me from many annoying and painful preview crap on discs that we already own.

    2. Re:I work for a video rental store by spire3661 · · Score: 2, Interesting

      NO. Redbox and Netflix are both on record as buying discs at retail stores. The retail chains were even pressured by the studios to limit the amount of discs a single person can buy.

      --
      Good-bye
    3. Re:I work for a video rental store by cjHopman · · Score: 5, Informative

      Those copies at BB are only licensed for private home exhibition (that's why the rental copies cost a lot more and your company pays royalties when you rent them, dipshit). By renting those out you're cheating not just the studio and the distributor, but also the writers, director and actors out of income. My neighbor down the hall is Columbia Pictures Home Ent's Worldwide President, you want me to pass along a URL to your post?

      God I hate freeloaders.

      Might want to pull out that law book of yours before commenting on legal matters. The right to rent retail purchased DVDs was affirmed in NEBG v Weinstein. Feel free to read more here.

      You've now made a fool of yourself to us, please reconsider before doing the same with your neighbor down the hall.

    4. Re:I work for a video rental store by naoursla · · Score: 2, Informative

      Maybe you should tell your neighbor down the hall that he has two options:

      1) Sell DVD's
      2) Rent movies

      If he is going to sell DVD's, then people are going to buy them and rent them out under first sale doctrine. The goal here is that revenue from purchases is more than you can extract from rentals.

      Or he could end sales. Plan on all revenue coming from revenue sharing on rentals. Give copies to the rental companies. Charge a super-high purchase rate if people don't return them. Dictate the rental price and take a healthy share. Doing it this way would also allow transfer pricing on companies like Netflix. Columbia could have transfer pricing on the Netflix's digital business if it were not for the escape hatch the physical mailing business provides.

      Unfortunately (for him), if the other studio's don't follow his lead, the end result will be fewer movies from Columbia being watched as consumers choose the competition. He could arrange collusion with his competition, but that would be illegal and probably more financially damaging in the long run.

      If he wants to discuss real long term solutions to this problem, I am available for consulting.

  9. Wow by MobileTatsu-NJG · · Score: 3, Insightful

    A Paramount exec said, 'Those people who want to rent are going to figure out ways to rent, and us restricting them from renting isn't going to turn it into a purchase.'

    That statement just kills me. In recent years, phrases like 'the customer is always right' seem like out-of-style-like-full-service-gas-stations concepts. If I were to go back in time like 15 years and talk about how these places lowered the value of the products to the people who pay for them to increase sales from those who didn't, they'd think I was concocting some silly sci-fi story.

    --

    "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

  10. At last by symes · · Score: 4, Insightful

    Having kids, a busy job and a generally hectic life I just don't have time to get to the cinema as often as I would like to. I would more than happily pay the equivalent, or even a small premium, to see a new release at home... why? Because going to the cinema is not just going to the cinema - it is an event with baby-sitter costs, a meal, drinks and generally making the most of a rare night out. Why oh why can't the movie business see this market (I'm pretty sure I'm not alone, well maybe on slashdot) and cater to my needs? I mean really! They are bonkers, the lot of them. Hell, I'd even subscribe and watch a new release once a week.

    1. Re:At last by AnonymousClown · · Score: 3, Interesting
      I can't stand the damn advertisements at the beginning. My bladder is only so big and sitting through a 2 hour movie is a challenge. I also have this thing about arriving late to miss the ads - walking in the dark, trying to find a seat - I like to sit at the very back under the projectionist - anyway, I have to plan to be dehydrated a little before I see a movie so that I can sit through it.

      It's also pretty pathetic that they have to remind people to be quiet and turn off their cell phones. Off course there's always one person that gets a call, their ringer is on full blast, it's also some hokey ring tone that just pierces through the movie sound ( and if you have an actor who likes to do those dramatic whispering dialogs ...), and of course, the phone is somewhere that's not in easy reach so it rings 4 or 5 times (one ring of a ringtone lasts the equivalent of 4 standard rings.) Then, some asshats actually answer the phone and talk.

      Then there's the shitty quality of movies in the theater. After watching clear crisp DVDs, a 35mm projected movie looks fuzzy to me. They all do so it couldn't have been a projectionist that didn't know what he was doing.

      DVDs for the win.

      --
      RIP America

      July 4, 1776 - September 11, 2001

  11. A return to the days of commissioned art. by maillemaker · · Score: 2, Insightful

    >They are raising funds for a movie called The Tunnel by letting people invest in individual frames for $1 apiece.
    >When the movie is complete, it will be released for free on torrent sites.

    Sounds like a return to the days of commissioned art.

    --
    A work that expires before its copyright never enters the public domain and thus enjoys eternal copyright protection.
  12. Big Rental Release by RichMan · · Score: 4, Interesting

    The bigger the rental release the more copies the rental places need to have to meet the surge. If the surge is dampened because of earlier sales and less hype because of the mixed release dates then the rental places have to buy less to meet the peak opening demand.

    So releasing into both markets at the same time is likely to lead to more sales into the rental market.

  13. Re:Redbox is for new releases by SweeBeeps · · Score: 3, Informative

    Older movies seem to be a Netflix specialty, especially with streaming content (whereas streaming new content is spotty at best!)

  14. Re:Redbox is for new releases by LBt1st · · Score: 5, Insightful

    From their couch.

  15. Re:Redbox is for new releases by mrmeval · · Score: 2, Informative

    Check their website, you can have movies delivered to a redbox and they'll tell you when you can pick it up.

    --
    I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
  16. Re:Redbox is for new releases by PrecambrianRabbit · · Score: 3, Interesting

    Honestly, you'll probably be out of luck. I was recently looking for a semi-old movie (from 1997, which feels weird to call semi-old) recently, and had no luck, even at places like Blockbuster. Shelf space is apparently at a premium, and unless a movie is a bona fide classic or new release, it's hard to justify stocking it... I guess.

    I have no objection to Netflix, so I'll probably go that route one of these days, but an alternative that I like is Amazon/iTunes rentals. I know they're DRM-ed, so many here will object, but I consider a rental a disposable purchase anyways. I don't mind if it has no future compatibility and limited viewing options, I just want to watch the movie this evening and then forget about it.