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How you get your movies
I'm a big film buff, so I consider this an important issue. There's a battle going on right now over how and when DVDs are available to the public. And yes, I'm talking about Netflix and Redbox.
Redbox is the kiosk you see in the grocery store where you can rent movies for a dollar. It's owned by Coinstar, the convert-your-change company. This week, Coinstar sued 20th Century Fox, claiming Fox is blocking new releases from going to Redbox. Coinstar and Universal Studios are headed to court over the same issue. Universal told its distributors to wait 45 days before delivering new releases to Redbox.
The studios believe the $1 rentals might undercut more lucrative rentals (at Blockbuster, for example), diminish the "value perception" of their movies and kill DVD sales.
But this isn't just about Redbox. This week, Warner Bros. changed its policy on new releases. From the Los Angeles Times:
In a brief statement, Warner Bros. said Redbox and its competitors will have to wait 28 days after DVDs launch to offer new releases. It is imposing the same restriction on subscription rental companies like Netflix unless they agree to "a day-and-date revenue-sharing option."
Here's Motley Fool's take on it:
Coinstar also has a legitimate gripe. If Blockbuster can rent at a higher price point -- or add free or discounted in-store DVD exchanges to its Netflixesque offering -- why is Coinstar the one being penalized for disrupting the value perception and being told what it can charge?
Some Wal-Mart stores have no problem housing Redbox kiosks. Do you think that the world's largest retailer would allow that if the buck rentals were cannibalizing DVD sales?
This is going to be an interesting battle. I just hope that the studios realize that they are simply delaying the inevitable. As physical platforms give way to the broader acceptance of digital delivery, they'll all be toast. Movie prices will fall, and physical kiosks will be harder sells.
The studios are all in different places on this. That's why you can only download certain movies from Netflix, for example. The rest you have to get by mail on DVD. What Warner Bros. is saying above, is that unless Netflix does a deal, you won't be getting new releases by mail either. Until 28 days later.
As for Redbox, Lions Gate and Sony have both signed deals to guarantee they'll make their films available. The studios got $200 million and $460 million, respectively, for five years. That's a lot of $1 rentals.
I don't blame the studios for trying to protect their DVD turf, but unless they get out in front on the downloading thing, well, they know what happens. Redbox might be least of their concerns.
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I just go to my local public library. They have plenty of old classics I haven't seen yet, lots of documentaries, and lots of specialty stuff. I'm in no hurry to see the latest releases, if a movie is any good it will have enough staying power to be available a little later. It's more fun discovering interesting movies on your own than thru hyper media campaigns. You get to watch them at your own pace because you get them for weeks and can renew them. They're free. And you can get a whole bunch at once. If you realize you're not liking a movie you can switch to the next one quickly. You get a big selection too.
Excellent point, John E.
The various local libraries are a great source of video content especially if you still have a VCR handy. A nice benefit of BluRay, lots of people donating their "plain old" DVDs to their local library to supplement the great documentaries already there.
Yes, I am a movie and TV buff. Big time.
Since I changed jobs five years ago, I had to rethink my video/tv watching habits. In 2004, I dropped the $50/month cable package & video store rental paradigm. I moved to a $11/month cable level (broadcast channel only...yes, it exists & still $11/month) and $17/month Netflix. Not only did I save money on video rentals and late fees, I watched "better TV" and skipped the low quality filler. I watch most of my episodic(sp?) TV series & movies on Netflix DVDs. Yes, it takes some patience but it is absolutely worth it. With the advent of Redbox, I can address by impulsive video new release desires economically. In Vermont, Netflix is great but the best turn-around time is 3 days (not including Sunday). The most under-estimated benefts, the ability to watch movies and shows on your schedule. As previously comments have alluded to, the studios really need to pull their head out of the sands or they will left behind along with their record label counterparts as most of the consumer move to "all-digital, no physical media, direct connection between producers & audience". You can almost hear the distant swan song for the "middle men" and "distribution channels" which add ever decreasing value as the internet becomes more pervasive.
It is amazing how much your free time is eaten away by the major networks with their scheduling tricks and commercials and how much more time have for other things.
Sadly, my internet connection is slow so instant streaming is problematic and the quality is low.
How do I get my movies? DVDs from NetFlix (90%) & Redbox (10%). (yes... 0% from commercial TV)
How do I get my typical TV content? DVDs from Netflix (80%), Internet (10% but going up, Netflix instant viewing & Hulu.com) and normal broadcast commercial TV (10%).
Cheers from Vermont.
It's unbelievable that the movie studios are playing chicken with consumers over this. The music industry is still trying to recover from their confrontational, head in the sand approach to digital music. I think the success of itunes, Amazon, etc has shown that people will play for things online when it is reasonable and convenient to do so. But put up too many roadblocks or make people jump through too many hoops because of greed or desire for control and they will bolt to the many avenues for getting stuff for free. Their entire future business depends on getting ahead of the curve on how people get movies and videos digitally.
Go to Edmunds.com and see what the true cost to own is for your car. If it costs you 50 cents per mile to go to Redbox, how much is that movie really costing you compared to having Netflix or Blockbuster deliver via the U.S. Mail? Besides, the post office needs your business.
I perfer Netflix for the service. I have an entire warehouse of DVD/Bluray movies to choose from. Not just the most popular movies Redbox chooses to hold. For that alone it's worth the extra cost.
Not only that, sure it's fun to go get a movie from Blockbuster or Redbox, that's not the problem, it's going and returning it, that's not fun or exciting. So I prefer Netflix as they deliver to my door and pick up at my door (via USPS).
-Chris
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