Some Movie Studios Shoot Themselves in the Foot

This news is a couple of months old but it is worth reporting here because if you are an investor in movie studios, it might be time to quit. Universal, Warner and Fox are all showing serious signs of desperation by introducing delay windows for rental outlets like Redbox and Netflix before directly selling them movies to rent out. Warner even wants to stop wholesalers from selling discs to the rental outlets. That is screwing both the consumer and business partners at the same time!

Redbox is suing all three studios. Not everyone is that stupid though. Sony and Lionsgate both have signed distribution deals with Redbox.

Somehow I don’t understand the logic behind this. Studios claim that rentals are eating into DVD/Blu-Ray sales. Who are these people who will buy if they can’t rent for another few weeks? We renters already waited a long time between the theatrical release and the DVD. Do they think we can’t wait a few more weeks? What’s the point?

Also this will not stop Redbox or Netflix from renting the movies out. They will just be forced to buy them from retailers instead of distributors and wholesalers. Which sucks for them. So essentially the studios are just screwing the same people over that help them make revenues and are probably their biggest customers. I don’t know how they expect to continue like this.

As it is Hollywood has run out of ideas and we are getting more remakes, more sequels, more Broadway adaptations and fewer original ideas. Will pissing partners and fans off make more money for the studios?

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