Redbox is raising its DVD rental price by 25%. The price, which has been $1.20 per night, will be raised to $1.50 per night starting December 2. The price for Blu-rays will go from $1.50 to $2.00 per night.
Video games will see an even bigger increase going $2.00 to $3.00.
“With new-release movies for $1.50 a day, Redbox remains the best value in new-release home entertainment. Consumers can continue to expect access to the newest movies months before streaming subscription services and daily prices that are still lower than Video On Demand,” said J. Scott Di Valerio, CEO of Redbox parent company Outerwall. “The pricing adjustments announced today will allow Redbox to continue to offer consumers high quality movies and games while making investments to enhance the customer experience.”
“Today’s announcement represents the first time Redbox has raised prices on Blu-ray discs and video games and only the second time in more than 12 years that we’ve raised prices on DVDs,” said Di Valerio. “We look forward to continuing to provide consumers with tremendous access to the new-release movies and games they love in the formats they want.”
The company raised DVD prices from $1 to $1.20 about three years ago.
Last month, Redbox Instant, which was supposed to be Outerwall’s Netflix competitor for streaming officially closed its doors.
Redbox Instant, which was once considered a possible threat to Netflix, is already shutting down less than two years after its launch. Of course it was really only considered a threat to Netflix before its launch, which was completely underwhelming with a very lackluster catalog compared to the streaming giant’s.
Redbox Instant was the result of a partnership between Redbox parent Outewrall (originally Coinstar) and Verizon The service actually carried the Verizon brand under the banner Redbox Instant by Verizon. A message on the service’s site says:
Thank you for being a part of Redbox Instant by Verizon. Please be aware that the service will be shut down on Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time.
Information on applicable refunds will be emailed to current customers and posted here on October 10.
In the meantime, you may continue to stream movies and use your Redbox kiosk credits until Tuesday, October 7 at 11:59 p.m. Pacific Time.
We apologize for any inconvenience and we thank you for the opportunity to entertain you.
Sincerely,
The Redbox Instant by Verizon Team
Some now wonder how long Redbox itself will be around as physical discs work their way closer to obsolescence.
Blockbuster was extremely popular in the 90’s on weekends for bringing popular movies home to watch. Timing was of utmost importance to snag the newest releases for movie night. Business did thrive for the company for many years, and expanded into shopping centers in suburbs and cities throughout the country. Blockbuster announced on Wednesday that it will be closing its small inventory of stores that are still open in the United States. 300 stores will close forever in January of 2014. Ordering DVD’s by mail through Blockbuster will be discontinued in December of 2013.
When most consumers think about watching a movie, they do not immediately consider Blockbuster. Dan Rayburn from StreamingMedia.com stated, “Blockbuster has no brand. Consumers stopped thinking about the brand a long time ago. Why did they take so long to close?”
Blockbuster announced they’re closing all their stores. Now where am I supposed to go when I want to be alone?
Open Blockbuster stores still received some business, but they simply can not currently compete with how consumers are choosing to be entertained. Many children and teens have never experienced renting a movie or video game from a local Blockbuster store. School aged children, teens, and adults have become accustomed to streaming their favorite movies on their televisions, computers, smart phones, and tablets.
The licensing rights of Blockbuster have been acquired by Dish Network. They currently offer the streaming of movies for Dish TV customers at an added cost to their monthly cable services. The current web portal, Blockbuster on Demand will remain open for customers who want to continue streaming their movies. This site charges a small monthly fee to access their catalog of movies.
“The quantity of movies is so limited,” Rayburn said. “Some of them are not even on (high-definition). It’s not even a real service. You can’t put it up there with Vudu or Netflix or Hulu.”
Although the Blockbuster on Demand service is limited and hasn’t yet caught up to its competitors it is going to remain open. Joseph Clayton the CEO of Blockbuster’s parent company Dish Network stated, “This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment. Despite our closing of the physical distribution elements of the business, we continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings.”
Going into a video store at the start of a weekend is a feeling that many people will never experience. The human touch when things go wrong is now a thing of the past, with renting movies and games. Being able to pick up a movie immediately was one of the best perks of Blockbuster. The flexibility of being able to stream movies online and renting from Redbox or other kiosks after pumping gas or getting groceries, can’t really compete with a video store that charges much more for the same service.
Blockbuster’s closing certainly does not come as too huge of a surprise to most people. The whole idea of a video rental store has almost been a thing of the past for several years now, as people continue to use sources such as Netflix or Redbox to watch movies. Several Blockbuster stores were already closed a few years ago throughout the country, but now the Blockbuster business will soon be nonexistent.
Plenty of people have also illegally downloaded films and television shows online, or found other ways to watch them online, without having to drive to the rental store to find them. The store will end all domestic retail activity in addition to its distribution by mail. Blockbuster offers a monthly plan to its customers, allowing them to check out as many movies or videogames that they want throughout a month for a fixed price, which was raised recently due to their drop in business.
With all of the different ways to watch movies and TV on the internet, in addition to VOD and other services, the business of Blockbuster has continued to struggle, and was down to its last 300 stores in the country. Today, it was announced that they would be closing those remaining stores by the video rental store’s parent company, Dish network. Dish acquired Blockbuster in a business deal that happened through a bankruptcy auction in 2011.
The change will happen by early 2014. However, even after the remaining stores are closed, there will still be a handful left, due to the fact that roughly 50 Blockbuster locations in the United States are owned by third-party franchisees, which are not affected by Dish’s decision.
The fact that within a few months there will officially be no more Blockbuster<<<<< #sadday
While the physical stores are closing, Blockbuster’s business is simply wanting to lean toward the digital side, which they have already had some experience with. As video once killed the radio star, internet has now killed the video store. Joseph P. Clatyon, said of the change, “Despite our closing of the physical distribution elements of the business, we continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings.”
Sad to hear Blockbuster Video closed its stores nationwide today. Pretty sure we financed a few of them in the 1990s just on our late fees.
Blockbuster’s closing of its remaining stores is a decision that many people saw coming for a long time, and it was only a matter of time before all of the stores were completely shut down, and out of business. The decision is also likely to not have an effect on much of the population, since most people have already turned to Netflix or other sources on the internet.
Netflix competitor Redbox is running a contest, giving away the first season of Netflix original series House of Cards on DVD. In a post on the company’s “Redblog,” it says:
You’ll understand why this new series has earned a whopping NINE Emmy nominations—including Outstanding Drama Series, Lead Actor, Lead Actress and Director—if yours is the name we draw on Wednesday. You’ll become the proud new owner of Season 1 of House of Cards (Approximate Retail Value (ARV): $55.99)!
Redbox is currently offering users episodes 1-6 through its kiosks. The other half of the season will be available next month.
House of Cards: Season 1 was released on DVD and Blu-ray, as well as on-demand back in June. Amazon, another competitor of Netflix’s, has also been promoting it. This is a significant sign that Netflix is onto something with its original programming (as if the Emmy nominations/wins weren’t enough).
Netflix has indicated that it will double its budget for original programming, and the shows being released via other channels ensures that they will find broader audiences outside of the Netflix universe, which could ultimately lead to more memberships in the long run. Orange is the New Black will also be making its way to DVD.
Roku announced on Thursday that it will soon be getting Redbox Instant. Roku announced writes in a blog post:
We’re always working to bring Roku customers the best range and quality in streaming entertainment, and today we’re excited to announce that Redbox Instant by Verizon will arrive on the Roku platform this summer!
Redbox Instant subscribers will be able to enjoy thousands of popular movies on Roku as well as buy and rent the newest releases on-demand.
The channel will be available on Roku 3, Roku 2, Roku LT (models 2400 & 2450), and Roku HD (model 2500) players in addition to the Roku Streaming Stick when Verizon launches it.
Redbox also announced this week that Redbox Instant is now available for Google TV, working on the following devices: the 47G2 and 55G2 Google TV-enabled Smart TVs from LG, NETGEAR’s NeoTV Prime with Google TV, the Sony Internet Player NSZ-GS7, and the Vizio Co-Star.
Clearly getting on as many devices as possible will be key to the success of the service as it competes with Netflix, Amazon, Hulu and others.
Google announced today that there is now a Redbox Instant by Verizon app for Google TV.
Redbox Instant senior product manager Brad Bowers writes on the Google TV blog, “It’s Friday night and you want to watch a movie. Great! If you have Google TV, now you can enjoy a flick in your living room using the Redbox Instant by Verizon app available through a supported Google TV device.”
The app works on the following devices: the 47G2 and 55G2 Google TV-enabled Smart TVs from LG, NETGEAR’s NeoTV Prime with Google TV, the Sony Internet Player NSZ-GS7, and the Vizio Co-Star.
Redbox notes that you need to make sure you have the latest version of your device’s firmware.
“The app delivers the full Redbox Instant by Verizon experience right to your living room,” says Bowers. “This includes access to your subscription disc and streaming package, and ability to purchase and rent the latest new releases from the Redbox Instant store.”
You can sign up for the service from the web or through the app itself.
Redbox has just hit a major milestone in Canada. In only 10 months after launching the first kiosks outside of Vancouver (and eventually spreading across Western Canada), the company has hit 1 million total rentals.
To celebrate this milestone, Redbox is offering specific rental deals to Canadians, which can be found on Redbox Canada’s Facebook page until April 11th.
“We’re delighted that Canadians have chosen Redbox as their destination for easy, affordable entertainment a million times over in just 10 months,” said Ron Cihocki, country manager, Redbox Canada. “To thank Canada for helping us reach our one millionth rental, we invite customers to enjoy great rental offers by visiting our Facebook page over the coming weeks.”
For Redbox, Canada is a market in its infancy. In the U.S., Redbox sees 62 million rentals a month. As of the end of 2012, Redbox had rented out over 2.5 billions discs to U.S. customers.
Of course, Redbox kiosks are everywhere in the U.S., with over 34,000 locations nationwide. 68% of the U.S. population lives within a 5-minute drive of a Redbox kiosks. By comparison, there’s less than a thousand Redbox kiosks in Canada – so 1 million rentals is a big deal.
Redbox kiosks in Canada, like Redbox kiosks in the U.S., have just recently received a boost from the brand new Redbox Instant service.
Redbox Instant, the company’s streaming service with partner Verizon, just launched out of beta and became open to the public earlier this month. The service costs $8 a month for unlimited streaming of over 4,500 movies (no TV shows yet), and also contains 4 free DVD rentals built into the monthly price.
Another piece of the Redbox Instant puzzle has just fallen into place, as the Redbox Instant app for Xbox 360 is now available to download. Microsoft first announced the app back in February, saying that it would be coming in the “very near future.” It looks like they were waiting for Redbox Instant to come out of its beta period.
Redbox Instant costs $8 a month, and that includes unlimited streaming of all 4,600 movies (no TV shows yet) in the Redbox Instant catalog, as well as a bonus 4 free DVD rentals from Redbox kiosks (which pays for over half the price itself, when you think about it). For $9 a month, you can upgrade your subscription to include Blu-Ray discs in the total package.
As of now, this is an exclusive deal – the Xbox 360 is the only console to feature a Redbox Instant app.
“Attention Redbox fans: the Redbox Instant by Verizon app is available on Xbox 360 now. Xbox LIVE Gold subscribers in the U.S. can sign up for Redbox Instant by Verizon and start enjoying Hollywood’s newest releases, in addition to a movie-lovers collection of popular classics available for unlimited streaming. Redbox Instant by Verizon also offers the ability to purchase and rent new releases and stream them directly into your living room through Xbox 360 without needing a subscription.” says the Major Nelson blog.
The Redbox Instant app also supports voice and gesture control via Kinect.
Yes, as with most streaming apps on the Xbox 360, a Xbox Live Gold membership is required. If you’re not a Gold member and you still want to check out Redbox Instant app – you’re in luck. The app will be unlocked for all Xbox LIVE members for a limited time.
And it looks like he’s a man of his word. Today, Redbox Instant is officially open to the public.
“Disc + digital for everyone! We’re now open to the public,” tweeted Redbox Instant this afternoon.
Redbox Instant, which launched its private beta back in December, costs $8 a month and gives subscribers access to over 4,500 movies (no TV shows yet). There’s also a bonus 4 free DVD rentals built in to the monthly price, which pays for over half the fee itself.
Redbox Instant doesn’t boast the quantity or quality of content available on Netflix Instant. A recent analysis showed that out of the “first 50″ titles streaming on Redbox Instant, 40 are available on Netflix too. It’s not to say that Redbox doesn’t bring anything to the table, but it’s going to fight to compete with the entrenched services like Netflix, Hulu, and Amazon Prime Instant Video.
Back in February, we learned that Redbox Instant would be coming to the Xbox 360 as a console exclusive. Of course, to access that app you have to be a Xbox Live Gold member.
Microsoft has just announced that Redbox Instant, the company’s streaming video venture with Verizon, will be coming to the Xbox 360 as as console exclusive.
“Today we’re happy to reveal that Redbox Instant by Verizon will be coming to Xbox 360 in the very near future,” says the Major Nelson blog. No other details were provided on the exact launch date of the new app, simply the “very near future.”
Also adding to a vagueness is the phrase “coming days,” which is the time frame in which current Redbox Instant beta participants will receive an email with a special access code. Redbox Instant is currently in a beta testing phase, but is likely to open up to everyone by March.
As is the case with Netflix, HBO Go, Hulu, and most other Xbox apps, an Xbox LIVE Gold membership will be required to use the new Redbox Instant app. Redbox Instant itself costs $8 a month ($9 for Blu-ray), and that includes full streaming access as well as four additional physical rentals.
Score one for Microsoft as they’ve just landed another streaming video option to tempt users into paying for Xbox LIVE Gold – even if Redbox Instant’s current offerings leave a lot to be desired.
Redbox Instant will be available to everyone in the U.S. by the end of the first quarter, according to a statement from CEO Shawn Strickland today at CES.
After a long wait, Redbox Instant by Verizon finally launched in beta last month. It’s a gradual rollout, and as of right now you still need an invitation to be able to join.
The service costs $8 a month, and gives subscribers access to a library of 4,500 films. Film, specifically, as the service doesn’t yet offer any TV shows.
Of course, Redbox Instant will be competing with other streaming services like Netflix, Hulu, and Amazon Prime Instant Video. As you would expect from any brand new streaming service, it’s starting off kind of slow. That is, the selection is not quite on par with its competitors. A recent analysis showed that out of the “first 50” titles streaming on Redbox Instant, 40 are available on Netflix too. Redbox Instant will continues to add titles leading up to its public launch, but it has a ways to go to match the content options available on other services.
What it does have, however is that nice little bonus built into the subscription: 4 free DVD rentals from Redbox kiosks. That alone is worth $4 of the monthly price.
It’s a given that streaming services aren’t very good when they begin. Netflix’s Watch Instantly service was filled with obscure programming for at least a year before deals were made to provide subscribers with decent content. So, it’s no surprise that Verizon’s Redbox Instant doesn’t yet have the exclusives that would set it apart from other, more established video streaming services.
An analyst with BTIG today released a comparison of Redbox Instant to other popular streaming services, and the outlook isn’t pretty. Of the “first 50” titles Redbox Instant will have streaming at launch, 40 of them can also be found on Netflix. The remaining 10 aren’t the type of movies that will sell the service to customers, at least not the ones that have the money to pay for a streaming video service. Many of the exclusives consist of concert flicks such as Taylor Swift: Just For You, Biebermania, and Lady Gaga: One Sequin at a Time. Killjoy 3 is also included, for fans of obscure horror.
That isn’t to say Redbox Instant will be devoid of popular movies. Thor, Rango, and the latest Transformers movie can be found on the service. It’s just that they can also be found streaming through Netflix, Amazon, and Epix.
So, Redbox Instant will be off to the slow start that other video streaming services. However, it’s a necessary step for Redbox, as even their breakthrough kiosk business will eventually become outdated as physical media formats become obsolete. With this in mind, Redbox Instant’s offers of bundled-in kiosk DVD rentals could help the service build a solid base of customers in the short-term.
The Redbox Instant Twitter account tweeted the big news today. The service (by Verizon) is starting its gradual roll-out (but you do still need to get on the waiting list).
The service is $8 a month (it’s free for one month), and gives users access to unlimited streaming movies and 4 DVD credits per month.
The U.S. has been waiting nearly a year for Redbox to launch its answer to Netflix Instant, and now the battle should heat up substantially. It will be quite interesting to see how many deals Redbox is able to make to get more content. Right now, the service has a long way to go to catch up to Netflix on that front. It doesn’t even have TV shows, and the movie selection is far less than Netflix, but it is just getting started. Let’s see how it plays out.
The mobile apps are now in Google Play and the App Store (via 9to5Google).
Redbox Instant should be launching soon. Reports back in the summer had it pegged to launch late this year. Now, here we are heading into December, and nothing yet (other than the closed beta, of course).
GigaOm’s Janko Roettgers stumbled across a help section about the service, which has now been removed from public view. According to Roettgers, the section revealed that subscriptions are priced at $6 a month for unlimited access to the subscription video catalog and $8 a month for that plus four Redbox credits, good for DVD rentals. Users will be able to reserve the rentals from the Instant site, Roettgers says.
The service also provides on-demand rentals and sales, starting at $0.99 with service available on the web, Android, iOS, Xbox 360, and some Samsung TVs and Blu-Ray players.
A possible release date was also revealed, according to the report, as beta testers are told that they won’t be able to access DVDs through the subscriptions until December 17.
Of course, being how none of this is public, any of it is subject to change, so we’ll have to keep everything here filed in the rumor department for the time being.
Redbox Instant is a joint venture between Redbox and Verizon. TiVo settled litigation with Verizon in September, and part of the agreement involved TiVo and Verizon “exploring, among other things, future distribution of Internet video services” developed through the joint venture – namely Redbox Instant.
TiVo announced today that it has settled pending patent litigation with Verizon. The two companies have entered into a mutual patent licensing arrangement under which Verizon will provide TiVo “total compensation worth at least $250.4 million.”
Part of the agreement involves TiVo and Verizon “exploring, among other things, future distribution of Internet video services developed through Verizon’s joint venture with Redbox.” This would include making content distributed via that service part of the content accessible via TiVo’s DVR products. More on the Verizon/Redbox offering here.
Verizon’s payments to TiVo will consist of a $100 million initial cash payment, and then recurring quarterly payments adding up to an additional $150.4 million through July of 2018.
TiVo says that if the companies decide to pursue certain commercial endeavors before December 21 of this year, up to $29.4 million of the payments made by Verizon would be subject to a credit of an equal amount.
Verizon will also pay monthly license fees through July 2018 for each Verizon DVR subscriber “in excess of certain pre-determined levels.”
“We are pleased to reach an agreement with Verizon which underscores the significant value our distribution partners derive from TiVo’s technological innovations and our shareholders derive from our investments in protecting TiVo’s intellectual property,” said TiVo President and CEO Tom Rogers.
“We also look forward to working together on a variety of future opportunities as we continue to expand the content choices available to TiVo subscribers,” he added. “As with prior settlements, we also benefit by being able to operate our business under license from Verizon and by avoiding future legal expenses that we would have incurred during and after trial. Furthermore, we believe this settlement positions us well with respect to future enforceability of our patents.”
Verizon and TiVo have agreed to dismiss all pending litigation.
You can expect to see Sony Pictures films continue to arrive at Redbox without delay, thanks to an extension of the companies’ licensing agreement that goes through September, 2014.
On the heels of their Q2 earnings release, Redbox parent company Coinstar has announced an amended agreement with Sony that extends it past the upcoming September 2012 termination deadline. At the end of September, 2014, Sony will retain the option for two one-year extensions.
The deal gives Redbox to continue to distribute Sony films on the very same day that Sony makes them available for purchase to the general public. It also gives Redbox the option to license Blu-Rays, among other things.
Translation: No delays on Sony films.
This news comes amidst licensing struggles with other companies like Disney and Warner Bros. Earlier this year, Warner Bros implemented a 56-day delay period for new releases, meaning that companies like Redbox and Netflix wouldn’t be able to distribute their films to customer for nearly two months after they’d been on sale. Redbox promptly fought back, electing to purchaser the films from retailers, at nearly double the cost.
Disney also recently imposed a 28-day delay on rentals to Netflix and Redbox. Redbox circumvented this in a similar fashion.
Well have to wait and see if and how any future deals with Warner and Disney allow Redbox to provide same-day release rentals to customers. Things could get a bit more interesting when Redbox’s new streaming service, Redbox Instant Streaming, debuts later this year.
If you’re looking for another way to stream video other than the already available options like Netflix, Hulu, HBO Go, and the like – another service is one step closer to becoming a reality.
Back in February, Redbox parent company Coinstar and Verizon announced a partnership that they said would culminate in the launch of an all-new Redbox streaming service, titled “Redbox Instant.” We were told that the service would be subscription-based, and would include packages that gave subscribers access to physical DVDs as Redbox Kiosks as well as access to the streaming content.
Now, according to Fast Company, Redbox Instant is launching in internal alpha testing today. Soon after that, we’ll see a beta program, and eventually the service will go live in the closing months of 2012.
We still don’t know anything about the pricing structure – except that it will definitely be subscription based. Here’s all that the Redbox Instant site has to offer right now:
All consumers have immediate access to new-release DVD and Blu-ray Disc® movie rentals through more than 36,800 Redbox kiosks nationwide and can instantly view popular entertainment content anywhere, anytime, using the devices they prefer with a Redbox Instant by Verizon subscription and video on-demand streaming service. The venture plans to introduce its unique product portfolio in the second half of 2012.
“DVDs at the kiosk + instant streaming hits, all in one fist-pumpin package.” Sounds like a worthy competitor for your streaming video dollars – but we’ll have to see the details before we make any such assertions.
Did you see director Andrew Stanton’s big-budget science fiction epic “John Carter” when it arrived in theaters earlier this year? If you didn’t, don’t feel bad, as it would appear that movie-goers avoided the film in droves, effectively transforming the potential blockbuster into one of the biggest financial disasters in cinematic history. According to the Daily Mail, Disney has stated that they anticipate a $200 million loss on the picture, which they’d hoped would become a huge money-making franchise. For some reason, folks just weren’t that interested.
Although the film sported some impressive special effects and a strong cast — Mark Strong, Bryan Cranston, and Dominic West all leant their talents to the production — the film couldn’t find a foothold with audiences. In an effort to recoup some of their losses, Disney released the film to DVD and Blu-ray in no time flat. Since the movie was a box office disaster, it would only make sense that the studio is hoping to make some money back courtesy of the home video market. This may explain why Disney is withholding the film from services like Netflix and Redbox.
According to Time, the company has instituted a 28-day embargo on the film’s arrival to the aforementioned movie rental services, hoping that those who passed on the flick during its theatrical run will drop upwards of $20 to bring it home on the format of their choice. Here’s the thing: If they didn’t shell out their hard-earned entertainment dollars on an overpriced theatrical ticket, why in the world would they drop that sort of cash to purchase a copy? If Disney hopes to any of their money back, selling copies to Netflix and Redbox, as well as traditional brick-and-morar video stores, seems like the logical thing to do.
In order to circumvent the delay, the companies have taken to retailers such as Target and Walmart in order to secure copies, which, during the first week on the shelves, tend to go for about $17. Given how many copies both will require to meet the demands of their customers, Disney could be well on its way to seeing “John Carter” make some scratch. Maybe not as much as they’d hope for, but enough to ease the pain of such a huge loss.
Some Netflix subscribers have already received their copy of “John Carter” in the mail. Redbox, meanwhile, plans to have their kiosks stocked with the flick by June 12th. Although I happened to enjoy the film, I wouldn’t necessarily say it’s one that you should rush out and buy sight unseen. However, if you want to enjoy the story without having to destroy your eyes staring at all of that overpriced CGI, take a trip to the local library and snag a copy of the original Edgar Rice Burroughs story. The last time I checked, it was still a good read.
Box Office Mojo states that “John Carter” has currently made just $282,494,595 worldwide. Given that the production budget was $250 million, a total which doesn’t include promotional costs, it could be a while before Disney breaks even.
Sometimes it seems that Netflix just can’t catch a break. While the movie industry has long had a love-hate relationship with the video rental industry, Netflix seems to get all the hate and none of the love. Ever since the Netflix became popular a few years ago – and especially since they launched their streaming service – they’ve been the entertainment industry’s red-headed (red-enveloped?) step-child. The movie companies have been doing everything in their power to keep Netflix down, because they believe (apparently) that people who can’t rent or stream movies legally will actually go out and buy the DVD or Blu-ray instead.
So the entertainment companies have done everything they can to try and keep rented copies of their movies out of customers’ hands. Back in January HBO stopped offering Netflix a discount on DVDs and Warner Brothers extended the delay between a movie’s in-store availability and its availability on Netflix to 56 days. RedBox, however, was having none of that and started buying their movies from retailers, prompting Universal to make a deal to keep the 28-day window in place.
Now, according to Home Media Magazine, Disney is getting in on the act. The company has announced that they would institute their own 28-day window for select titles. That means that if you want to get John Carter, which came out out on DVD and Blu-ray on Tuesday, you’ll have to either buy it, or wait 28 days until it comes to Netflix (though RedBox apparently intends to get it from retailers, making it available on June 12).
Of course, the big question is whether this sort of windowing actually does anybody any good. Though the studios occasionally try to argue that it’s really better for the consumer, it’s hard to imagine that anyone actually believes that. The real goal, of course, is to pad the studios’ bottom line. Again, they believe that rental delays encourages consumers to purchase the movie, though it’s not clear whether actual sales data backs that up. One thing is certain, however: in an age where the average consumer is increasingly technologically savvy, more and more people are going to be find themselves in the kind of situation depicted in the now-famous Game of Thrones Oatmeal comic.
The sooner the studios figure that out, the better off the consumers will be.
For those of you wonder where John Carter is on Redbox, you may be shocked to find out the the company who made the film, Disney, has gone the way of Universal and Fox to wait 28 days after the film is released on DVD to make wholesale copies available to Redbox. Universal and Fox (and now, Disney) have disagreed with studios like Paramount and Lionsgate, who release their titles for Redbox at the same time as the DVD.
Some think that renting the movie cheaply with inspire those that liked the film to make the DVD purchase. Universal and Fox think that the cheap alternative is ruining DVD sales. Warner Bros. is another that falls into this camp, saying that they will extend the delay period to 56 days before offering wholesale terms to rental companies.
As far as Disney goes, they have not made any announcement as to whether or not they will adopt the 28 day delay. But Redbox lovers will notice a distinct lack of John Carter on the new releases page. According to Redbox via Deadline Hollywood, “Redbox has always worked with Disney on a per title basis, without a contract. We will be sourcing John Carter through alternative means.” “Alternative means” indicates that they just buy the DVD from retailers to offer at their kiosks.
Deadline Hollywood is reporting that Disney CEO Bob Igor said to analyst in February that they are in discussions to go with the 28 day window before offering Redbox cheaper terms. It is apparent that they have since adopted that strategy and Redbox will now be forced to pay full purchase price for all of Disney’s Films. Igor added that it would be wise for them to protect DVD sales as much as they can. The market has been in steady decline recently.
Redbox is planning to have the DVD in kiosks next Tuesday. They have not said why they had the delay, knowing that they would have had to pay full price for the release anyway.
Do they not realize they are also competing with pirates? It seems to me that most people only splurge on a DVD if they think the movie is really good. Hollywood now produces more movies a year than anytime in history. If everyone shelled out $20+ every time a new movie was released, we would all be broke. It may also lead to Redbox raising prices on new releases. Also not a good thing.
