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I just got back in the office to find out yet another entity caved to Hollywood studio power and pressure. Frankly, I would have loved to see Redbox really stick it to the majors in its effort to make cheap DVDs available to consumers. Instead the company, like everybody else, buckled under to Big Media. So today Redbox has agreed to Universal and Fox demands for a 28-day window before making those studios’ DVDs and Blu-rays available for $1-a-day rentals at 20,000 kiosks in grocery stores and such. It’s a similar deal to the one reached recently with Warner Bros. So much for Redbox’s fighting spirit, evidenced when the company sued Universal Studios Home Entertainment and tangled with Twentieth Century Fox Home Entertainment as well. Maybe, one day, somebody won’t just bend over.
Editor-in-Chief Nikki Finke - tip her here.
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“Maybe, one day, someone won’t just bend over.”
Unfortunately, that has been and will continue to be our Swedish friends at the PirateBay.
I don’t know the metrics of Redbox bulk DVD purchases, but I assume the studios are fighting this because they feel it would hurt initial DVD sales. Those first few weeks are huge. If thats the case it is not as simple as or as sexy as “Little guy bends over for big guy”. As bad as DVD residuals are, a lot of people feed a lot of families on them. Sure, so what if the studio, who by the way created and owns the product, makes a little more money. So does the individual producer, writer, people with deals, and me…the lowly actor. Maybe something similar should have been applied to Netfix? My parent used to buy every DVD they wanted to watch since Blockbuster was a pain in the butt due to the travel to location and inevitable late fees. Now, they have seen more movies than I have via Netflix. I am sure the issue is very complicated, but if the studio is fighting to keep DVD sales numbers intact, that is the side of the fight I want to be on. My piece of the pie may be small, but it still taste good. Aforementioned notwithstanding, it gives the studios one less thing to complain about once contract negotiations come around again.
I agree with the posters who are pointing out that this is a win for the creatives. Redbox could kill what is left of studios taking chances on dramas and interesting non tent pole films if they sell dvd’s for nothing. Our employers need to make money so the creatives who created and make the films make money, not Redbox.
I hope you are on our side Nikki, and not Redbox.
Here we go again! Why is the consumer’s opinoin or wants the last point to be considered in this debate? We are after all the body that actually pays for the end product. Good movies will always be purchased by the public when released to DVD.
I am glad to see RedBox come to town. It is the best thing since sliced bread. As a family of five…we only go to the “movies” twice a year. The experience does not justify the time or money expended.
RedBox should have asked us how we felt about their decision to bow to the Major Picture Houses. Why didn’t they come up with streaming moves direct to people’s homes…by now. My husband and I would be glad to pay $15 – $25 to view a movie that is premiering in the privacy of our own home.
Anyway…what a shame…no one is willing to stand up for their beliefs.
To keep these many families fed as you state also sticks it to everyone that buys/rents DVDs. Is it ok for 1000′s of families to make a living when 100,000 families lose money that they would feed there family with? Granted we are talking DVDs so you don’t have to have them. DVDs being sold for 15.99-25.99 is in insult. It costs them soo little to make DVDs. Priced at $5 each they would still make a large profit. I illude this to selling soda. I cost a store let’s say $.10 to fill a 32 oz soda. Including cup, soda and labor. They charge me 1.29-2.00 for this soda. Nice profit! They could sell it to me for $0.50 and still make 5 times their money. Greed. It is simple greed at the expense of the consumer.
Nikki,
If Redbox continues to make “cheap DVDs available”, there will be no more video business to write about. Is it so bad to ask consumers to pay more than 50% less than the cost of one movie ticket to rent a brand new DVD?
Yes. It is wrong.
It’s hard to know what to feel about this all – as first and foremost a fan of movies, I’m fed up with the lousy content, not the eroding boundaries between the distribution windows. Is there a studio willing to produce quality content and stop grousing about how there’s really no way to make money doing that with all the new distribution models?
Nikki – generally love your reporting, but sometimes in your vitriol against the studios, you seem to now be contradicting yourself.
On the one hand, you say. “I would have loved to see Redbox really stick it to the majors in its effort to make cheap DVDs available to consumer…” And yet for years you have passionately championed writers getting a bigger share of the DVD pie.
Well, these 2 things don’t go together. Cheaper DVDs mean smaller revenues to the studios, which mean smaller residuals to your writers.
So, Nikki, what do you want? Cheap DVDs for consumers? Or bigger residual checks for your beloved writers? In your continued loathing of the studios, you can’t have both.
What is most interesting (to me at least) is the schizim between the various studios. Now, about 1/2 (Warner, Fox and Uni) will have the 28 day window and the other 1/2 (Paramount, Sony and Lionsgate) will be day and date. Whichever model provides the best profit, the other side is going to be left with some egg on their face, as they both were quite proud to be following their respective tracks.
Nikki,
Honestly don’t understand your ire. Homvid numbers are down down down. This hurts all of us who work in Hollywood. Now it’s true that the studios do not share much of that wealth, but if it just goes out of the loop and into the hands of Redbox, then the creatives in hollywood don’t stand a chance of ever seeing it. Am I missing something?
You mean I have to wait a month to rent say, Transformers 5, after it’s been released?
Yeah. I think I can wait.
The month window would matter if movies were so compelling folks would want to see them NOW! But they are disposable KFC movie fast food. People can easily wait. Or not see them at all.
You don’t have to wait a month. You could just go to an actual video store. The few that are still left post-Netflix would’ve been obliterated if Redbox hadn’t caved to the studios, so for the sake of small businesses I say this is very good news.
it’s the studios freaking product…you guys sound like Redbox has a right to it.
They do have a right to it. It’s called the first-sale doctorine. And it was established by the supreme court.
But Nikki they have to I mean Blockbuster Video pretty much going out of business (Hollywood and most other already have mom and pops hardly exist) and that’s all it has left to remain competitive. Blockbuster provides jobs and landlords with rent, etc. Don’t forget about that. It’s really important to remember. Throughout the history of video/dvd rentals the studios have set the price points. Look, Big Media SUCKS, but in this one area, I give them props. RedBox was marking down that product wayyy too low. And one day one Blockbuster does go out of business and the windows go away, you’ll get your Redbox dvd for $1 right away – but not now.
Everyone keeps talking about how some can’t compete and how people will lose jobs and ‘rent’ money. What happens when Redbox fails. Don’t they pay rent and feed their families?
Looks like Blockbuster may get to stick around until after the holidays after all.
How in the world is a money transfer from Hollywood to Redbox a good thing? Never mind the industry’s need for healthy distributors. Residuals are dependent on healthy video grosses. Backends are, too.
wait a minute, nikki – do you even get the economics of the DVD business? Redbox doesn’t need the new release titles – it’s like Netflix – theatrical is doing well enough, that the demand to own or rent within four weeks of release just isn’t there for these guys, certainly not to justify paying high fees to the studios for it. their earnings are doing just well enough on the later titles, which most consumers see as new releases anyway — how long do you wait for a new release on Netflix, do you get it in the first 4 weeks? how many films do you get from Redbox in its four weeks of release? think about it. it’s common sense and smart.
Who buys DVDs anymore anyway? With Netflix and streaming downloads, plus Redbox, who on earth is wasting money on DVDs these days? The studios will find out they will still lose in the end. The future is now and they are operating a business model as though it is still 1999.
Yes. The delay is working. Record sales for Blindside, the first movie not to be in the box, 2nd Sherlock Holomes, and 3rd Avatar; all these movies are selling at higher rates, then when Netflix and Redbox had them.
I agree, this is a best news for the industry. We all like cheaper product, but not a monopoly. No Hollywood video and Blockbuster’s around now, so yes I’m buying most of my movies. Wish they were here, and I regret ever putting my credit card in that machine, because in the end, they sold us out by striking the 28 day delay. The Mom and Pops are gone, too.. Hope Blockbuster comes back stronger…
Nikki – Redbox would have helped the average consumer but lower prices come at the expense of the studios which would filter down in the form of lower $$ deals for writers, directors, producers, etc. When something has to give, the artists get screwed even more.
Nikki: Is this an attempt at trolling your own blog? This is an outrageous statement. Whatever you think of Blockbuster, at least they (used to) buy independent films as well. Unfortunately, Redbox is not. Independent distributors (not just studios) need Blockbuster to survive a while longer. Maybe this move will leave some room for indie films on redbox.
There was a time when films meant something more than a 99 cent rental. Have we become a society that considers motion pictures just a commodity, no different than garden hoses or toothpaste. Lest we forget that making a film is/was an art form. Studios hate Redbox but its their greed that caused its success. Profits at home video divisions are drastically down.. You reap what you sew.
Your are right. We all wanted the cheaper product, so we went to Netflix and Redbox, only to have them hook-us-in and then strike a deal to wait on New Releases. Yes, studio informed them about the delay, but also offered the standard revenue share deal so they can get the movie day of release (shared across all video rental venues, including BB). Both of them turned it down, and said we wants cheaper product and willing to wait, which I believe is going against their customers expectations. Now, if competition was still around, like before netflix and redbox, Which Video Rental place would ever sign a 28-day delay, and who would go there????? remember when you sacrificed you local Mom Pop for Hollywood video (paying a bit more), WHY? .. it was because they had ample Supply day of release (btw, you need revenue to buy movies).
I can understand redbox — but why does netflix have to agree to this also? Netflix is more expensive. Blockbuster has now become the only choice if you want to see new releases.
“Have we become a society that considers motion pictures just a commodity, no different than garden hoses or toothpaste. Lest we forget that making a film is/was an art form.”
Right on for that part of your remark(s), old movie guy! Quality should be what is most important in any art form, regardless of the fact that it is also a business.
And what, pray tell, is wrong with Swedes?
How about the actors get paid less and then the product costs less and everyone can be happy. Actors don’t need to make literally millions of dollars per movie, that’s ridiculous.