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Studios Considering Plan To Delay Rental Releases For Blu-Ray and DVD?

Posted on Monday, October 26th, 2009 by Brendon Connelly

Presented with the option of buying a film on disc or just renting it, it practically goes without saying that springing to purchase a a film sight unseen must happen far less regularly than just plumping for a hire. This situation will also be exacerbated by Netflix-style postal services and VOD. It isn’t any wonder, then, that the studios are considering a plan that would give sell-through discs a window of their own, a protected chance to tempt consumers into a more profitable course of consumerism.

I’ve read a report from The LA Times (found courtesy of Screen Rant) in which Netflix CEO Reed Hastings is quoted as having made the following claim during a conference call:

The studios are wrestling with declines in DVD sales while the DVD rental market has been modestly growing. One of the mitigating steps some are considering is introducing a DVD retail sales-only window for a few weeks.

Already, 20th Century Fox, Universal Pictures and Warner Bros. have pulled their discs and gone to court with Redbox, the $1-a-night robo-kiosk people. The studios argue that Redbox are devaluing the product at that price, and they may have a point. As a collectormaniac consumer, I’d love to see the prices on both rental and retail discs continue to drop (and drop and drop) but as a film lover, I’d hate for this to create a climate of fear that sees the studios less willing to invest in risky (read: not utterly banal) films.

Dare I dream of a future world in which the studios have become extinct and the film culture is no longer shackled to profit and investment but the labour-of-love work of people settling for reasonable wages and looking to express themselves? Imagine a world where a film director earns, say, $90,000 for a year’s work and an actor bags $45,000 for a four week stint on set. It’s bizarro economics, and might sound more like a burger joint than the supposed dream factory of Hollywood but it is films getting made, and I’m sure just as many of them would be good. Can we even fantasise the film industry as existing in a completely different strata of the economy? And if not, why not?

Back to the rental question. Hastings has identified a silver lining to the proposed rental delay, and related it in the same call:

If we can agree on low-enough pricing, delayed rental could potentially increase profits for everyone.

And for the consumer? A greater tendency to borrow discs from friends maybe and perhaps even a huge rise in piracy. Time will tell.

Comments

David O'Brian

This is the reason why people steal your movies. No one wants to pay $20 for a piece of shit.

Scott C.

Yeah, that's totally going to slow down piracy

eddymovies

Yes! Stealing is justified! Thank you for making the world a better place.

existenz

Actually, people paid $20 for those "pieces of shit" for the past 20 years. Many people liked them, and thought it was a good deal compared to renting for $4 from Blockbuster.

With these cheap alternatives like Netflix and Redbox, I don't see how DVD and Blu-Ray sales avoid dropping into the gutter. I couldn't believe it when I read that Netflix pays retail price for each DVD. Do the studios get a kickback on each movie rented and/or streamed??? If not, they are just as stupid as the dying newspaper industry.

You give your product away for free (or close to free) and you will stop making money. Period. Netflix is 1000 times more dangerous to the film business than illegal downloading.

lipslikeasukal

Have to agree. As a NetFlix subscriber, it's just so easy to watch your movies and TV, that there's no point in trying to download or pirate movies illegally. However, I still know a bunch of people who obtain the movies illegally.

NetFlix is mainly for those people who are lazy/ like the convenience (don't want to go outside) or are huge movie fans. I fall in the latter.

But for those who don't fall in either, googling currently-in-theaters movies, is much more convenient and economical. They'd rather watch Wolverine for free than pay for a subscription just to catch some "Indie" film not available at the brick and mortar rental joints.

presto117

I never blind buy Blu-Rays and i never really rent movies (especially with blockbuster gone mostly) so this doesn't realy affect me, but this does suck. unless it's a huge summer blockbuster (dark knight, transformers) or a movie with a director people like (wes anderson, quentin tarantino, uwe boll) most people are just gonna wait the few weeks. People will buy what they like and incentives always work. I say get rid of the stupid, stupid one disc movie-only DVDs and go back to the "all DVDs are special 2 disc editions" and put them at the single-disc price, then people might buy more.

eddymovies

I think the recent success of Paranormal Activity derails your argument. Just find the right way to market your movie and work WITH the people. It's just Hollywood is so black and white with these issues, if only they were more creative and open minded, they can find ways to fix things.

HenryJonesJr

I'll tell you what killed DVD. Having seen the video format switch at least 4 times in just my relatively short life (vhs, dvd, blu-ray, download) I think a lot of people realized what a waste of money it is to buy physical media. Forcing everyone to buy the same movie over and over to keep up with whatever the current tech is killed the purchase market. They shot themselves in their own foot. Delaying rentals isn't going to do anything but further accelerate the death of physical media.

Sean Kelly

I don't know how many people actually repurchase films. I still have a lot of my favourite films on VHS and I have been just too cheap to pick up DVDs of them.

Corey31

I have re-bought most of my favourite movies to DVD. I wait for them to go below $10 and I buy them.

That said, I don't believe I will every re-buy 95% of these films even on Blu-Ray/Digital Download. It comes down to the "good enough" argument. I own the movie in a relatively watchable quality and enough bonus features to keep me happy. I'm not going to shell out anymore money just to have the movie in HD.

Some movies I skipped right from VHS to HD-DVD/Blu-Ray. I will probably make that jump for the rest of the ones I don't own on DVD yet.

existenz

Blu-Ray is still of much higher quality than streaming. Streaming (with a standard broadband connection) is usually between VHS and DVD in quality. The sound is really bad -- stereo only.

But the convenience factor is unparalleled. Not sure why the studios don't set up a nonprofit streaming company so that they can make the money off their product, not Netflix.

evanz

Here's what the studio execs must be thinking: So, I'm too cheap to plunk down $10 or $12 to see the movie on the big screen, which is much more entertaining, and instead, I will wait several months and pay twice that to buy the disc and watch it on my HDTV. Realllllly. Sorry, but if I don't want to pony up to see it in the theaters, how the hell is waiting another month going to convince me to buy it?

dcfemella

I couldn't have said it better myself.

BrendonConnelly

That seems to make sense, but I know loads - and I mean LOADS - of people who don't go to the cinema AND buy lots of discs sight unseen. I know, I don't understand them either.

But they exist.

Fir3Wolf

Well I've never been a big DVD renter and kinda hate how some movies get released for rent only before being released for purchase. For instances The Brothers Bloom which I hear is out to rent but I can't buy it yet. I'm all for the delay of releasing movies for rent.

lipslikeasukal

Wait, how would delaying The Brothers Bloom for rent make it available for you to purchase/view right now? Instead, you and everyone else just wouldn't be able to see it.

By the way, The Brothers Bloom is currently next on my NetFlix queue.

Sean

You can buy The Brothers Bloom via Amazon Canada. I did. Screw the idiotic US marketing of The Brothers Bloom. Lame.

Ben L.

The "studios" grow increasingly desperate to stop time moving forward. Kind of hilarious. Also kind of :(

jakebrick

Why do they keep trying to force consumers' demands? They should realize what we want (rentals/cheaper discs) and work with that, not take stuff away from us so that we have no alternatives.

razcunningham

why? because they make a lot of money off it, or they used to. same thing as the american car companies in '08. you're right though, they should learn, but these companies are so afraid of change it sickens them. its one of the reasons i left them to begin with.

Sean Kelly

Personally, I think movie rentals have become more outdated during the last decade or so. I would only rent films that I have not seen and these days that need is being met by an OnDemand cable channel.

lipslikeasukal

I use my NetFlix, not only to watch new release, when available (ugh!), but to also catch films not readily available anywhere else (e.g. foreign, tv seasons, past releases). And it's very convenient.

CyT

The sad thing with all of this is that the next generation of teens are probably going to miss out on those great times of wandering aimlessly down the video store isle trying to find a random film that takes your fancy. Especially when you end up making a spot decision to hire Bloodsport or something equally ridiculous then and there and enjoying the sh*t out of it when you get home, but otherwise would hardly ever watch. Thats what I miss the most about shrinking rental stores. Especially when that chance find turns into a movie you love forever.

existenz

Yep, those days are gone. Just like the days of walking through a record store and finding new stuff, or picking up a newspaper and reading articles that you didn't know you'd have interest in.

Obviously scrolling through the Netflix site or iTunes or LATimes.com can also allow for discovery, but it's different to say the least.

lipslikeasukal

I've never experienced that, but I'm wondering if NetFlix were to develop a better community/social network for its service, if it would be a suitable replacement for walking through an actual rental store with your friends.

CyT

Its a nice idea, but you will never beat the fact that you decided it was time to get off the couch, drive to the rental store, walk around for a few hours, bump into a friend maybe, have a hard time deciding between a horror or a comedy, finally coming to a decision and driving home, chucking it on and feel that smile come on your face knowing you just spent your time well.

razcunningham

look, some people buy and some people rent, there will always be a divide. however, as prices rise, buying will fall, simple economics. a delay between purchase and rentals will do nothing except work against the distributor. Once its out to buy, all you need is one person to rip it onto a high traffic torrent/pirate site and its over. people will wait for a movie, and they'll take it for free rather than rent.

one thing to consider, is technology vs. generation. the over 40 crowd will still rent and still buy, but those under 40, who 7 out of 10 according to a CNBC report sometime in 2008, know how to use torrents and pirate sites, and as the number of people under 40 grows, and it will, obviously, so will piracy per capita rates.

Brendon is right, i would love to see people actually make reasonable salaries on films. Is THAT why your cost is so high to make a movie? yes, reason number one, actually. 45k for an actor for 4 weeks and 90k for a director for a year is a bit... well, its a divide, but i understand what he's saying and i agree. I support it 100 percent.

LostTurntable

If Redbox wants to rent movies at a dollar a pop they can, it's called the right of first sale. Studios must have no long-term memory, considering they sued video stores for doing the same thing back in the early 80s. The idea of a retail window is hysterical considering for years it was the other way around, with rental stores getting movies months or even years before they went to retail.

Goro

Dear studios,
Thinking up new ways to irritate and alienate your customers should not be your prime directive.

HTH HAND

Goro

Or alternately, the studios could lower the prices, particularly for BluRay.

artgood

"Imagine a world where a film director earns, say, $90,000 for a year’s work and an actor bags $45,000 for a four week stint on set."

I think that makes perfect sense (coming of course from a guy who would KILL to make $45,000 for a YEAR).

I hereby offer my services for a four week stint on a movie set for the sum of $45,000. I will act, pick up donuts, wash the directors car - whatever - for only $45,000. As long as its not porn, I'm in.

Call me.

james

what I think is funny is that every tuesday someone from red box comes into my walmart and buys about four thousand dollars worth of the new releases. they bought our entire run of the orphan, so don't expect that tactic to work.

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