Warner Bros., who never seems to be satisfied with its relationship with Redbox, etc., may soon be pushing to extend its current 28-day delay window on new releases. According to at least one analyst, Redbox has a workaround option ready to help it keep its stock of Warner movies intact if the worst happens.
B. Riley & Co. analyst and frequent Redbox booster Eric Wold says that Redbox’s management has spent the time since the company’s last workaround effort to develop a new strategy that will allow the company to keep the Warner titles (15% of the rental market) flowing should the new release window be lengthened.
Said Wold:
“We do not believe that Warner Bros. (or Universal Studios Home Entertainment and 20th Century Fox Home Entertainment) holds all the cards in the DVD agreement negotiations . . . While Redbox was forced into a workaround two years ago on minimal notice, the workaround plan developed since that time has been developed as a long-term replacement to a studio agreement (with copyright law in the company’s corner) . . . We are not concerned if a workaround plan is implemented,”
Wold thinks that Warner may be forced to soften its position at the negotiating table because of Redbox’s potential workaround plan, and also says that the current 28-day delay has had “negligible” impact on disc sales.
What do you think, Insiders? If Warner plays hardball with new release windows again, is Redbox ready to stand its ground?
(via Home Media Magazine)
Redbox will walk tall and be carrying a big stick.
Absolutely they should and probably can stand their ground. When the delay first went into effect, it seemed they were trying to get the disks into the machines within 2-3 days. People now expect a delay so if they warner tries to play hard ball, they should just tell them to stick it, buy the dvd’s and load the machines. They could easily cut that 28 days down to 1 week or less. I’d say the ball is in redbox’s court. If they need to charge an “little” extra I think most people would go for that the first few weeks.
BBX charges over DOUBLE and that is not acceptable. $1.50 I think would be satisfactory and I’d assume would cover their extra expense.
Like Jack, I hope they use the First Sale Doctrine and start releasing Warner titles with little or no delay at all. Watch Warner come crawling back to the table.
It wouldn’t be cheap, but it would make a point.
Does anyone know what’s redbox’s new workaround strategy?
Not really but it would have to involve a wholesaler too big to scare. Wal-Mart used to be that but they have a conflict of interest and backed out. There are alternatives out there.
Because they own vudu? Blockbuster is/was doing a work around even as they and parent echostar stream VOD all over the place. If netflix goes around it’s not like they will lose streaming content. Walmart could still be in.
Consumers are going to like the work around because warner titles will be showing up in the redbox faster. Good bye 28 delay!!! Sorry Bewkes.
@FLoN
Isn’t that the *old* workaround strategy? ;)
I don’t care if I wait two months or two days. When I rent it, it will be a new movie to me. I don’t need to watch it as soon as it comes out. If I’m so interested in a movie that I HAVE to see it, I’ll go to the theater and see it. There are very few movies that I’m inclined to buy and watch them stack up in my shelf to maybe never be watched again.
It seems as though WB is still not happy with their DVD sales. Do they really believe that extending the rental release date is going to help this? Talk about flogging a dead horse…
The only way I buy DVDs is if I see them first as a rental.
If I like it well enough to rent it more than one or 2 days, then I will buy it.
Making redbox and other rental companies wait to release rentals to their customers just delays my decision. I don’t buy a movie I haven’t seen (and I don’t go to theaters). So if I haven’t seen it, that’s a potential lost sale. Multiply that times how many other people do the same.
Warner bros et al are cutting off their noses to spite their faces.
I think they are ready if that happens. I have been buying more this year as more titles I want have come out and previous once were on sale. I sill prefer to rent first before deciding to buy and I never would go back to blind purchases.
Very interesting subject , thankyou for posting . “The great leaders have always stage-managed their effects.” by Charles De Gaulle.