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Comments

Kam

"The deal also requires Redbox to destroy Warner titles after the rental period."

Uh, or they could sell them and donate the proceeds to charity. Seems like a terrible waste.

bob

This just makes me less likely to buy a DVD. Telling me I can't rent it at the same time as purchasing it? Screw you. Limit my options, lose my money.

BP

Hahahahahahahahahahahahahaha!

To everyone who was complaining about Netflix signing this deal:

IN YOUR FACE, IN YOUR FACE, IN YOUR FACE!

Lamont

So maybe this explains why Whiteout has a big RENTAL notation printed on the bottom of the DVD? I imagine Redbox's copies of Warner Bros. discs may have the same marking.

BP- why would you be HAPPY that the general public is being subjected to this bullying by the studios? you think it's a good thing that we are all being forced to wait to rent new releases? [and don't give me any blah blah about 28 days and what difference does it make etc; that is not an opinion shared by all users of the NF service]

We are paying the same for less, and so is the Redbox customer- that is not something to cheer about, IMHO.

bri

They just don't get it. All they are going to do is cause more people to do out and download more movies and they wont get any money.

Did they not learn anything from the music industry.

Seth

"To everyone who was complaining about Netflix signing this deal:

IN YOUR FACE, IN YOUR FACE, IN YOUR FACE!"

BP, I don't understand your point.

What's in our face? Did anyone say something like no one else will do this deal? Because definitely no one did. It's in fact exactly what people were afraid of.


Seth

I am surprised Redbox took this deal.

Although it appears that Netflix's raison d'être for doing the deal came right from Warner's PR people, since Redbox makes exactly the same claim almost word for word ("The new arrangement provides Redbox with reduced product costs, sufficient quantities of product and optimal stock levels four weeks after street date...")

Well, I guess this only furthers my argument that Netflix will soon be acquired. Unless these companies are stupid (which Netflix surely ain't) there is simply too much power with the small amount of entertainment companies. That's how I interpret their behavior. They just can't end run around these guys anymore to get the discs.

Except to see more of these deals soon.

So Mr. Hastings, what will your next great venture be?

Seth

That should read:

"Expect to see more of these deals soon."

Mike

Why can't we just opt to pay a premium for new releases?

If I want a new release the week it comes out, say, I'll pay an extra buck for it.

Get a clue Warner, if I want to see a movie but I don't want to buy the movie, having these rental services hold back a month is not going to make me shell out the cash for it. End of story.

BoB

I COULD CARE LESS!!!!

What's 28 more days?!

I will not BUY a dvd for a 28 day wait!!!!!!!!

Big deal. I won't buy a DVD to WATCH when I don't know if I even like the movie!!!!!

Stupid. I'll just wait and then rent it. If they push too much, I'll go back to the old days and wait until the movie comes out on a premium channel or, "gasp", network TV!!!!!!!!

Terry Myers

... or you can just torrent it.

Fools at the MPAA; there are alternatives out there, and the public has shown they're not scared to use them to get the gratification they want.

bill

@BoB - if you could care less, that means you care a good deal about it now, and there's room for losing interest. You're looking for "I couldn't care less". If you're going to shout, at least shout the right thing. It's hard to be taken seriously if you don't even know what you're talking about.

b

I've noticed Warner gives Netflix crappy DVDs. They have no special features and all they're good for, really, is the movie itself.

Bast

And earlier this week, I just sent Redbox feedback about this, about how I hoped they wouldn't follow suit. How disappointing.

david

Yeah, don't care for the "rental copy". I don't appreciate watching 10min of forced trailers and ads before getting to the movie.

Getting NF stopped me downloading pirated movies. Even if I enjoy a film after waiting 28 days and sitting through ads, I don't see how after having a lousy experience, I want to then rush out & buy the fully featured retail copy.

Racket

I am guessing the big winner is the Blockbuster brick and mortar stores. Blockbuster stores will continue to rent new releases at the time of sale but I bet their online service will have a delay. Blockbuster kicks back a higher percentage of revenue sharing rental to the studios for new releases, which is one of the reasons it costs so much more to rent from BB. From the movie industry viewpoint this looks like a way to maximize all revenue streams. I have my doubts, but we shall see. I don't want to wait for new releases but I would rather have a wait and an endless stream of entertainment for cheap, than pay 5 dollars a rental.

This was a great idea for Netflix but a huge mistake for Redbox, they fill different niches and it fits into the Netflix business plan, it runs counter to the whole point of Redbox.

Goodboy_stay

I do not buy discs anymore. I will pay for a digital download if I really want to own it though but otherwise,...waiting for a film to be released in another 28 days: inconsequential to me, at best. Streaming films as Netflix does is so much easier and...
HEY LOOK! I don't have a wall or damn book housing 100's of discs taking up space! Fantastic. The less clutter the better. Goodbye discs.
We'll miss you....

maybe.

The physicality of it all will end soon anyway.

RB

28 days is no big deal. Think about it this way, if Warners decided to wait 28 extra days for ALL releases, whether for sales or rental, then this probably wouldn't have made news. The studios aren't screwing you out of something. They could choose to never release DVDs for rental - EVER. it's their product, they can distribute it as they choose.

George

To quote my previous comment: "It's a long-term subscription killer for Netflix, UNLESS Redbox and Blockbuster share the same release window."

That comment still rings true. If Blockbuster signs the deal, then Netflix is the clear winner. However, as things currently stand: A 3 Movie out per day plan from Blockbuster with Blu-Ray included, is roughly 4$ cheaper per month then Netflix, with the added option of also going to local store and picking a movie up spur of the moment. If it does turn out that Blockbuster can offer nearly all movies for rental 30 days prior to all of it's competitors - Netflix subscriptions will drop heavily.

The only X factors are A) How many other studios plan on signing 30 day deals? and B) Will Blockbuster retain it's exclusivity as the only provider allowing movie rentals the moment they are released on video?

Time will tell, but as I stated previously: The day theres a movie I truly wish to see that I can't via Netflix but CAN via Blockbuster, I will cancel/switch.

Seth

"Think about it this way, if Warners decided to wait 28 extra days for ALL releases, whether for sales or rental, then this probably wouldn't have made news."

Huh? If they add 28 days to all releases, then they are just extending the theatrical window. It wouldn't change anything with rentals. Or sales.

Sock Puppet

Man I LOVE you Blockbuster people! Look, if what BB is doing is so smart, and so successful riddle me this...

December stock price for each share .71¢
February stock price for each share .36¢

The math is not that hard to do, BB cannot afford to keep paying the studios a per rental royalty, they are hemorrhaging and will die soon.

They will not however take over the online rental business.

Brandon

I don't like the 28 day rental window, but I am sure I can understand why Netflix and Redbox took the deal. It is obvious from the press releases that WB is giving them a very favorable wholesale contract for rentals in exchange for the release window. If they did not take the deal, they would have to buy all copies at list price. This would mean that many fewer copies could be purchased, and so you would have "Very Long Wait" on all of your pictures meaning you are very unlikely to get them in the first 28 days. Furthermore, you are still less likely to get them AFTER 28 days because there are fewer copies to be had at large (ok, there is another option, Netflix could raise prices to facilitate buying more list price DVDs, but that would get even more pushback than having low stock). As a result of the change, after the 28 day window, there will be a ton of copies available. Also, unless you are following a specific movie, you might not even notice that the title is release delayed on Netflix since it does not even enter your main queue. For those who do not follow Netflix as close as us, there may be no inconvenience.

I see Blockbuster holding out for quite some time because they will get serious competition from the few 'mom and pop' rental stores that remain and other smaller chains like Movie Gallery that cannot afford to not have the newest releases.

Tino

"riddle me this...

December stock price for each share .71¢
February stock price for each share .36¢"

Riddle me this:

why do you put a decimal point in front of the cents sign? It should read either $0.71 or 71c. You seem to be off by a factor of 100.

[I think BB should have been bankrupt years ago, I just don't understand your nomenclature]

Scott

To everyone who says the deal makes no sense for Warner because people who weren't going to buy the disk are still not going to buy the disk: There may be some people who are really eager to see something, and will pop the 20 bucks to be able to see it as soon as they can, and now there is less chance Warner will lose these people to lower revenue rental. (And to those in previous threads who have said that anyone so psyched about a movie probably would have seen it in the theaters... people miss things they want to see in the theaters all the time, for all kinds of reasons. Bad timing, difficulty/expense of getting babysitters, whatever.) This might lower Warner's manufacturing costs as well... they could theoretically ship tons of units to retail, and a few weeks later, a bunch of unsold inventory comes back and goes out to netflix and redbox. (Though I'm not sure 28 days is enough gap to make a strategy like that work.)


To people who say that people will just download torrents... I think you underestimate how many people don't know how to do this, or choose not to whether for fear of viruses, unreliability of the process, long download times, extra steps needed to get it to a TV, questionable quality, illegality, computer slowdowns, etc. I know I'd rather wait 28 days then deal with the hassle. IMO, torrents are mostly for kids and computer geeks, I've got better things to do. (Like write online posts, apparently. Hmmm.)


Kam, re: "or they could sell them and donate the proceeds to charity. Seems like a terrible waste." -- Yeah. Same problem I had with Cash for Clunkers. Destroying serviceable cars that, as old or uneconomical or high mileage as they may have been, might still have been better than some even worse clunkers out on the road, driven by the poorer people who most need help. They're still driving even worse clunkers, and couldn't trade them in because they didn't have the cash or credit or means to afford new car payments. They should have been able to trade their deathtraps in for a cheap better clunker that someone more well off dumped.

Lamont, yes, in a way, we're paying the same for less. OTOH, if the post 28-day supply is sufficiently better, it may not really be less, as others have pointed out. I mean, if people are now waiting perhaps 60 days for some of the hottest releases, and now they will only have to wait 30 because the supply gets so much better then, then there's a benefit (except for the lucky few who actually got copies in the first 28 days under the old scheme, but that was like winning a lottery). I mean let's face it, if getting new releases ASAP is your biggest priority, netflix was *never* the best choice. Which I guess is the main reason I don't get all the fuss. I guess I can see redbox clientele being more affected, seeing movies at blockbuster but missing from the kiosk, though I'm not sure how good their fill rate was on new releases anyway, I never used them. But hey, with its dollar rentals, it is marketed as a budget service compared to blockbuster to begin with.

Regardless, the fact is, things change all the time. Prices go up, service arrangements change, that's life, and you can always choose to cancel or whatever, that's your right. Mike would be happy if Netflix simply charged a buck premium for a new release. That would have made some people happy, but I bet just as many would have screamed over that too.

Seth, Hastings' next venture is already in the works. Shifting Netflix from reliance on DVDs to a streaming service.

Bill, "could care less" is supposed to be read with sarcasm to mean the opposite (though you're right that many people don't realize what they're saying, it's just become such a common phrase).

RB is half right... the studios can do whatever they want with product they own, including not releasing rental disks at all. But also, first sale doctrine means that people who buy the discs can also do what they want with it... that's why rental started happening in the first place. The studios can't stop netflix/redbox from renting, they can just influence the economics of it.

hbi2k

Did Redbox also agree to always write their name in all lowercase and in italics?

Frank Tien

even if Blockbuster gets an "advantage," they're not going to be able to take advantage because of their regressive nature. In my area only 2 of the blockbusters are left from the 7 that were here in 2003. And the two left are on the extremes of the area. The Hollywood video near us is finally closing. This 28 days later isn't going to hurt or help anyone outside of Blockbuster. Now they don't have to be in the middle of the battle between the studios and redbox - they no longer have to deal with having those mega-displays for DVDs in the entrance while there's a $1 redbox machine in their lobby.

Onekatietwo

Oh. Ok. So they're giving people more time to pirate movies and become uninterested in them so they won't be tempted to spend a bit of money on renting it? Brilliant.

Though I suppose this was a well-thought out decision and we're all just wrong and/or not seeing the big picture.

The part about having to destroy them after use DEFINITELY rubs me the wrong way, though. I hope they're at least recyclable.

Louie

In reality, if all rental co do this, then it will just put all of our rentals 28days after release. we will just suffer the first 28day buffer, then all subsequent rentalswill be recieved on a "regular " rental basis. does that make sense? Just becasue a movie is released at walmart, isnt going to make me buy it. hell, i had terminator 4 at the top of my q with a "very long wait" for 5 months after it as released. Thank god i didnt buy it. Dont get angry when BB also does this, the studios arejust hurting themself. we will be the winner in the end. sales will continue to drop, theater viewings will drop, tv pand dv purchases will drop, then the studios will BEG and fight for our rentalns and money. lke it was when movies first started in the 40s or 50s..whatevr. you get my idea. the days of mltimllion dollar pai acors areover. the days of25 and 30$ dvds and BD discs are over. its just a matter of time before the consumer prevails. hangin there, we will be victorious.
the real thing o be scared about is if the studios have diffeent buffer periods for different movies.

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