20th century Fux says No! to Redbox
p2pnet news view | Movies:- For many people, Redbox is movie central.
It’s convenient. And cheap. Very cheap.
Like, $1 per flick.
20th century Fux doesn’t like that so it’s, “enlisted in Universal’s campaign against Redbox and other discount-rental chains by ordering wholesalers to stop supplying discs to Redbox kiosks during the first 30 days after Fox film and television titles hit the market,” says the Hollywood Reporter.
Redbox is suing universal because it believes it has the right to determine who it sells DVDs to and who its distributor sells DVDs to and under what terms, said Pali Research, going on »»»
Essentially Universal wants to create a 45-day window before Redbox can offer DVDs for rent at $1/day (versus current day-and-date renting with the release of a DVD), limit the number of copies of a title per kiosk and prevent Redbox from selling DVDs into the previously viewed market. Redbox, on the other hand, believes that once it buys a DVD from a studio it should be able to do whatever it wants with that DVD under the First Sale Doctrine and that Universal cannot dictate the terms of Redbox’s rental business.
Fox has ordered its DVD wholesalers not to sell to Redbox or other DVD kiosk companies until 30 days after movies are released, says the Los Angeles Times, continuing:
“Many studios are wary of Redbox, whose business has doubled in the last year, because its kiosks rent out DVDs for just $1 per night. That undercuts stores with higher rental prices, Netflix and disc sales. All three carry significantly higher margins than studios can get even through a revenue-sharing agreement with Redbox.”
Not only but also, significant numbers of movie lovers have figured out all they have to do is rent a movie for a dollar —-
—- and then copy it.
Meanwhile, Sony, “became the first studio to reach an agreement to sell DVDs directly to Redbox,” p2pnet posted recently, quoting Pali.
(Cheers, Marc)
First they ignore you, then they laugh at you, then they fight you, then you win ~ Mahatma Gandhi
$1 per flick – Rent, Rip, Return (Tutorial), July 23, 2009
Hollywood Reporter – Fox pulls cheap DVD rentals from Redbox, August 5, 2009
Pali Research – Is Redbox Friend or Foe? What to Know if You Invest in Movie Industry Stocks, July 28, 2009
Los Angeles Times – Fox to Redbox: Hands off our movies for 30 days, August 5, 2009
p2pnet – Redbox, making rental ‘convenient’. Again., July 28, 2009
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