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Studios Fight Back Against Redbox

Posted: August 11th, 2009 by WorstPreviews.com Staff
Studios Fight Back Against RedboxSubmit Comment
The Associated Press is reporting that the studios are afraid of Redbox, a self-serve DVD rental kiosks outside McDonalds and in grocery stores where people can rent a movie for $1 a night.

Redbox is owned by Coinstar, which reported a 110% revenue increase in the second quarter of this year, while DVD sales fell 13.5% in the first half of the year. The studio are afraid that this kiosk company will put them out of business, so they are putting up a fight.

Last year, Universal Pictures tried to push a 45-day delay waiting period, which means that Redbox won't be able to offer new releases for over a month. Redbox objected, so Universal completely cut off its supply. Now, the company buys Universal titles at retails stores, significantly cutting into its own profits.

20th Century Fox has now ordered its wholesalers not to sell DVD discs to Redbox until 30 days after a movie's initial release to help boost retail sales.

And earlier this month, Sony agreed to sell cheaper discs to Redbox, but the kiosk company was to destroy the discs after renting them instead of putting them on sale for $7 each.

Source: The Associated Press

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Displaying 29 comment(s) Profanity: Turn On
dandythelion writes:
on August 11th, 2009 at 5:52:55 AM

i hate redbox. there are three within a block of my house. they're an eyesore. i rented from one a few times and i just don't find them all that great.
bale01289 writes:
on August 11th, 2009 at 6:55:00 AM

Uh, Redbox is a movie lovers dream! One dollar rental and return to any redbox you choose.....best deal EVER!!!
VDODSON writes:
on August 11th, 2009 at 7:48:16 AM

Redbox is the poor mans netflix. Come on, movies out of a vending machine. I do commend them for business practices though, way to stick it to the man.
freshfromthedeli writes:
on August 11th, 2009 at 8:17:08 AM

Well if Blockbuster didn't make you pay up to $5 per movie, maybe Redbox wouldn't be around. The studios should be pissed at Blockbuster.
DrHines writes:
on August 11th, 2009 at 10:39:51 AM

Its not blockbuster that's worried, they're going down anyway, its the studios. Redbox is so cheap its killing their retail profits. Sure they're cheap and assessable but they're no good if they're hurting the very studios who put out the movies you're going to rent. I side with dandy and the studios Redbox is a blight
pjay13 writes:
on August 11th, 2009 at 10:50:27 AM

I have a hard time believing that a vending machine is causing sales in DVD sales to drop. Maybe its the fact that the economy sucks and some people don't have 20 bucks to buy a movie everytime it comes out. Studios should lower their prices and maybe that would help
ericthebald writes:
on August 11th, 2009 at 10:54:53 AM

maybe i'm just ignorant, but how can redbox put the studios out of business when the redbox needs the movies that the studios put out in order to survive???
PrevalentMind writes:
on August 11th, 2009 at 11:20:03 AM

Is the key words "fight back" OR "kicking a starving dog"...OR "f*cking over consumers and trapping them into a monopoly"?

It's time they change the way they do business at the box office. Not the home video market. If they never mass marketing ONE movie theatrically, while ditching 100 worthy others on DVD they deserve to lose money. If they tried to use their entire line of films to generate profits instead of putting all their eggs into one basket hoping for a one weekend payoff they'd be more stable. 5 low budget gem thrillers (ie Taken) with Harry Potters marketing budget divided between all of them WOULD generate more profits...

...the whole 'we must be number 1 at the box office to look successful' is old and childish. Three films with legs at number 4 for several weeks is just as good as as one flash in the pan blockbuster that makes all its cash in two weeks and falls off the top ten.
padfootbob writes:
on August 11th, 2009 at 2:41:01 PM

f*ck this red box sh*t.
MoneyHayabusa writes:
on August 11th, 2009 at 2:55:07 PM

Hmm well thanks to redbox in the last month I saw the remake of "Day the Earth Stood Still", Benjamin Button, Bolt, Taken, Defiance and something else, I forget. All for less than the price of a ticket to ONE of those movies at the theater.

Also, how about movie studios get off their high horses and stop acting like their movies are worthy of $180 million dollar budgets? Its really WE THE VIEWERS who are paying for them, so how about a little respect by keeping budgets down and ticket prices lower? Redbox and Netflix are karmic punishment for ramping up theater ticket, rental and dvd prices... f*cking gold-plating empty pinatas! Give us a REASON to pay out our ass for your movie and we will!
AP102390 writes:
on August 11th, 2009 at 4:07:09 PM

i agree with dandy and drhines, Redbox is directly taking away from the studios that spend millions and millions to make and market these movies, and redbox is cutting directly into the studios profit, making it very difficult for them to recoup their efforts. it only makes sense now for the studios to fight back and take profits away from redbox because we all know you don't bite the hand that feeds you.
Ranger writes:
on August 11th, 2009 at 5:31:47 PM

What every happened to FREE ENTERPRISE. If you could do something cheaper, better... and make the big boys squirm... so the f*ck what? Universal and 20th Century Fox using their might, and now SONY telling them how to run their business, etc. gets under my skin like censorship of ANY kind! Redbox is laying out the cash for their equipment out there... yeah, I don't like those big 3 for sticking their nose into other people's business (even though they're claiming it is their business). Why aren't they on Walmart for selling DVD's for cheaper than Blockbuster then? Oh right... Walmart is another powerhouse.

Hey Fox, Sony and Universal. Suck my d*ck! It's your ball and bat and you're going home... whiners!
Ranger writes:
on August 11th, 2009 at 5:36:10 PM

@AP102390 and others...

Do you like paying $8 - $12+ for a movie ticket? The studios are NOT hurting for cash (do your research). They're doing so well in fact their parent companies that own them are taking their cash for other ventures not producing (outside of the entertainment business). What Redbox is doing is (supposed to be) called FREE ENTERPRISE. If I give you your $10. - $20. to buy your DVD... wtf do you care what I do with it afterwards? And that includes renting it out for $1 and laying out all that cash for that equipment, and risk having it vandalized. You like the Actors getting $25mil a movie? Guess what pays for that... you do (see $8 - $12/ticket above). So Redbox is pressured... I just love these Nazi tactics (yes, you read that right, I know who the Nazi's were...lol) the big 3 (in this example) have used to pressure an honest business.

Seriously big 3... blow me!
Ranger writes:
on August 11th, 2009 at 5:37:06 PM

Bite the hand that feeds you? Redbox PURCHASED all their DVD's from these studio's distributors. They've ALREADY paid the price.

synthetic1985 writes:
on August 11th, 2009 at 5:44:43 PM

well said Ranger....and this will not stop that....i think movie studios are trying to start a war between them and the public...whom of which is the ONLY reason these companies exist...and they're trying to basically spit in our faces every time they need to make more sh*ttier movies vs the better ones?...f*ck them i'll just get redbox and wait...i've learned how to be more patient...besides...time goes by too fast anyway
Ranger writes:
on August 11th, 2009 at 5:49:24 PM

Thx. Synth.

Here's the question: would you rather pay $1 for a movie... or 8 or 12x's that. End of discussion.

Who it may 'hurt' (puhhhleeaassee), the Studios are just saving Blockbusters ass (note the didn't pick on NetFlix).

RedBox ALREADY PAID for these DVD's... and if they bought them 'PRE-RETAIL availability'... they paid handsomely for them too).

Some on here don't realize the 'slippery slope' this is on. A business gets crushed by big business yet again... where does it stop? Maybe when it's their job, their business... they'll understand.

So much for Free Enterprise... let's ALL GO work for the corporations.
synthetic1985 writes:
on August 11th, 2009 at 8:07:59 PM

just be more patient...i have a feeling we can do justice to bad entertainment
UZZIEMAN writes:
on August 11th, 2009 at 9:50:11 PM

WOW!!! you people dont lke redbox its just the ame movies but still i like to buy good mnovies and rent the bad ones sometimes lol!
Ranger writes:
on August 11th, 2009 at 10:05:46 PM

I thought 'Redbox' was a Lohan reference.
minkowski writes:
on August 12th, 2009 at 1:01:21 AM

"I thought 'Redbox' was a Lohan reference."

No, you're thinking of another box altogether. You're thinking of 'coffin'.

When I heard the announcement for the new Richard Kelly film 'The Box', I thought: is this a new film based on the 'The Ring', a film where if you f*ck Lindsey Lohan, you have seven days till you die a horrible agonizing death?

Thereafter, I learned it was just more of Richard Kelly's bullsh*t.
FBO writes:
on August 12th, 2009 at 2:35:50 AM

All you that call redbox a blight, do you really think that or do you just hate it because you think it's trendy? Redbox rox. It's not RB fault that movies lately have sucked ass. Who the hell wants to pay $27 for some Super Duber Special Gay Directors Cut Edition of Wolverine?
FBO writes:
on August 12th, 2009 at 2:39:52 AM

And Ranger, if anything RedBox would be a reference to Channing Tatum. However had the article said something like; sHe MaLe'S fLaMiNg PeNiS oF dEaTh, Then I could see confusing that with Lohan
Ranger writes:
on August 12th, 2009 at 2:40:39 AM

Good point (the $27... etc.). Pay $1 for a movie... who cares if it sucks (for $1. it's allowed!). It's it's great... great! Then go buy the $27 DVD because you NOW KNOW it's worth the $'s.

Those big 3 clamping down on RedBox is sooooo bad for Free Enterprise.
Drumeez writes:
on August 12th, 2009 at 8:35:21 AM

I think the problem with the movie industry is the same with music industry, they are more worried about shutting down things that could potentially hurt profit instead focusing on the product itself. I think that the theater experience needs to be revamped beyond putting everything in 3-D. A new theater opened up in Milwaukee that has a restaurant and bowling alley which is cool but the down side is tickets are up to $14 that's not even for 3D. Redbox has made a lot of money off me, but I still buy DVD's if I want it bad enough. There's not enough focus on the customer from the side of the studios.
synthetic1985 writes:
on August 12th, 2009 at 8:24:28 PM

well i focused on customers for my little project...which is good for me, but it's sad to have to say that not even hollywood could AFFORD to produce better material...even heath ledger does better on remakes...and now, his last movie has more originality in one finger than hollywood has in their entire universe...look at the karate kid remake for example...jackie chan's participation there gives reason for other action stars to take that role for its sequels....there's ONLY ONE mr. miyagi...so in the words of stifler in american pie 2...'didn't you f*ckers learn anything in college??'
FBO writes:
on August 12th, 2009 at 8:39:44 PM

You know they're just pissed because it's now harder to rip people off
synthetic1985 writes:
on August 12th, 2009 at 9:04:51 PM

@ FBO....excellent point...i'm starting to like the was this sounds...studios are pissed because they can no longer rip off people....JUSTICE!!! haha
synthetic1985 writes:
on August 12th, 2009 at 9:05:13 PM

i mean the *way* this sounds
synthetic1985 writes:
on August 12th, 2009 at 9:08:12 PM

there's an imax near where i live...and they were gonna shut the thing down because it was about 2002-2004 at the time...not making hardly any money and not enough GOOD movies were made...SO...they started playing older movies....and you know what?...people actually watch older movies...if hollywood were really that smart...we'd see a bunch of re-releases of these good movies...not remakes

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