Aping rival studio Warner’s actions of a few weeks ago, 20th Century Fox and Sony Pictures Entertainment have struck deals with struggling rental chain Blockbuster.
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As with the Warner deal, Blockbuster will be able to rent Fox and Sony titles the day they are released.
In exchange for more favorable payment terms from the two studios, Blockbuster is giving a first lien to Sony and Fox on all of its Canadian assets. While BB rival Redbox has a distribution deal in place with Sony, it remains embroiled in a legal battle with Fox (and Universal) and is forced to employ workarounds to obtain new releases from the latter two studios.
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With more studios willing to throw Blockbuster a bone, have the company’s chances of survival improved from, say, a month ago? How many such lifelines would it take to keep Blockbuster afloat, if that possibility remains?
(via the L.A. Times)
I will die before I go to a blockbuster machine or store. Blockbuster and the studios want everyone to pay $4.50 for their crap. Redbox charges $1.00. I’ll stick with redbox and my wallet will stay fat. You guys can empty out your wallets to Blockbuster. I prefer to keep my money.
While if you go to Blockbuster Express It is also $1.00 + Tax A night just like redbox!… Me I agree I would never go to Block Buster, Hollywood Video and pay $5 to $6 for a movie for a few nights…. I want my wallet to stay fat also!
I visit Blockbuster kiosks but only to use my (many) FREE Blockbuster rental codes. Also, I do NOT pay for extra days. If I want to actually PAY to rent a video I prefer REDBOX every time. FREE blockbuster rentals actually COST Blockbuster $$$ to provide. LOST rental fees from paying customers… I enjoy that even more. BLOCKBUSTER SUCKS.
These deals were signed so that BB did not declare chapter 11 by being unable to repay their april bond. The studios would have lost more money if that had happened than signing this deal.
Make no mistake though, the studios are not happy with having to do this. BB is on a short rope now and they have another bond payment due in July. If they cannot turn things around quickly you will see these studios squeeze BB America because they know they can get money by selling off the Canadian stores.
Agree!
It’s really just a last ditch attempt to get as much cash out of a dying company until the inevitable occurs.
‘If they cannot turn things around quickly…’
There is a first time for everything but Blockbuster has shown zero ability to turn anything around quickly. The 28 day window helps but it’s a band-aid for a mortal wound.
I see these “28/30 day windows” happening with all the major studios UNTIL BB goes out of business, and we all can see the writing on the wall. We all know that these 28/30 day delays are as a result of BB. They can’t compete against RB and they know it.
I understand this is capitalism at work, in a loose way, but I really hate this. For me, personally, if a business cannot pick itself back up by itself (or with very little help) then maybe it doesn’t deserve to continue. I’m not saying I’m rooting for BB’s demise, but jeez, these exclusive deals are killing me. It seems to be all about BB at the expense of the consumer. I’ll be glad when BB either goes under or makes a comeback and these favoritism deals are gone… until the next one comes along I’m sure.
Just my two pennies.
Dee
Would really love to know how BB and their creditor’s work these things out. For example how do you give “first lien” for all Canadian assets to the studio, I would think the bank would have first lien given the fact they owe over 1 billion. Hate to be the one to explain to the studio’s or the banks those assets are junk, hell the studio’s are complaining about not selling their new product, love to see them try to unload all the used (beaten to hell) copies. I’ll have to review their financial’s.
I believe BB Canada is a seperate company under the umbrella of BBI. As are their Euro operations. It is only BB USA that is really having the troubles right now. Last I heard, BB Canada was generating excellent profits.
It is also my understanding that BB destroys more PV DVDs than they sell.
whats with most people have this deep hatred towards blockbuster? Since redbox came along I completely stopped going to BB but I dont hate the company. BBexpress jest like Redbox provides excellent value and there’s no need to despise it. I dont have any bbexpress in my area but when they come I will rent from them if they have the movie i want.
Most insiders share your viewpoint.
It’s not a hatred towards Blockbuster, it’s just its lack of integrity. Why hasn’t NCR built out the BBE kiosk network?
I had more defective disks from Blockbuster’s retail distribution that “Total Access” was a disappointment. And now like so many of the Insiders, the Blockbuster B&M locations within a commuting distance have all closed, how can BB be liked under these circumstances?
I agree, I did like the “Total Access” at first then Blockbuster changed/limited there plans/prices every few months. Then the only Blockbuster B&M closed within 30 miles. And the BBE kiosk is still yet another 30 or more miles away.
My advice is that Blockbuster = Titanic. BB hit the Iceberg of competition and even with life preservers, to save the few, the ship will still sink to the bottom.
NETFLIX SIGNS 28 DAY WINDOW DEAL WITH FOX AND UNIVERSAL
Netflix Signs New Deals With Fox and Universal
By : Erik Gruenwedel | Posted: 09 Apr 2010
egruenwedel@questex.com
Netflix April 9 said it inked new comprehensive distribution deals with Twentieth Century Fox Film Corp. and Universal Studios Home Entertainment, which for the first time offers Fox and Universal prime time television content and movies to the Los Gatos, Calif.-based online DVD rental pioneer’s Watch Instantly streaming service.
The streaming license includes complete prior seasons of “24,” “Bones” and “Lie to Me,” and Universal domestic films like Gosford Park and Billy Elliott and library films including The Pianist, Being John Malkovich and Do the Right Thing.
The agreement also calls for a 28-day delay for new release DVD and Blu-ray Disc movies from 20th Century Fox Home Entertainment and USHE, which like other studios, are creating a retail window at the expense of rental and specifically $1-per-day kiosks.
Among the first DVD/Blu-ray releases under this arrangement will be Fox’s Avatar, which will be available to Netflix customers 28 days after its April 22 street date. The first Universal release covered under the new agreement is the comedy It’s Complicated, which will be available to Netflix subscribers 28 days after its April 27 street date.
“A key aspect of our content delivery strategy is to provide consumers with attractive options to view our movies and television shows across a broad range of media, windows, and business models,” said Jim Gianopulos and Tom Rothman, co-chairmen and CEO’s Fox filmed entertainment. “This expanded relationship with Netflix offers our audiences more choice and convenient access to a wide variety of our content.”
Indeed, speculation is that Fox and Redbox will also announce a separate deal prior to the bow of Avatar, widely considered to be one of the biggest packaged media releases this year. The studio earlier this week inked a revised deal with Blockbuster.
The deals between Netflix, Universal and Fox mirror in many aspects the former’s recent revised deal with Warner Home Video, including access to greater catalog, superior copy depth on all titles and expanded digital content.
“We’re extremely pleased to have reached this mutually beneficial arrangement that will allow Netflix subscribers to continue enjoying Universal’s film content on DVD and Blu-ray,” said Craig Kornblau, president of Universal Studios Home Entertainment.
Netflix, which generates 70% of its rental turns from catalog, has sought to increase availability of new release movies and expand its digital offerings.
The service, which offers streaming as a value-add to subscribers to a variety of consumer electronics devices and all the major video game platforms, has acknowledged the need to upgrade the content quality of Watch Instantly.
“We believe the Fox deal, which brings some of the studio’s great TV franchises and a library of both contemporary and classic movies to the growing percentage of Netflix members who are watching instantly, is a win all around,” said Ted Sarandos, chief content officer for Netflix. “Our intent is to forge agreements that make sense for the companies involved and that, on the whole, improve the consumer experience and the movie ecosystem. We believe the Universal deal accomplishs that.”
Redbox, the bell tolls for thee.
wow sony made out … they get 1st lein when blockbuster goes out!
30 is total bs. it doesnmt matter. so you wait 30 days. get a life yall.
bb express is great. free codes everywhere. if you want a free code just crete a new email alias forward it to your main email address. sign up at bb express site and they give you a code that works once per credit card.
at 1am tuesday morning you rent online with a promo code and they keep it until 9pm tuesday to pick up. totally free if you return by 9pm next day.
cant beat that!!!
the 30 day bs wont hcange a thing. kiosks are stupid machines and can be beaten. and $1 rentals are3 here to stay!!!!!!!!!!!!!!!!
some of you people are so bloody cheap… maybe you should borrow from the library if you can’t afford a $5 movie! anybody who stands in line at a kiosk to rent a $1 movie they have to run back the next day probably collects food stamps too!
You’re an idiot!
its not personal blockbuster you are just to expensive and your exclusivity deals are doing nothing for me.redbox and netflix are the way to go for me.