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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

The Real Reason why the Studios do what they do

The bottom line is the Studio's are scared to death they are going to get "iTuned". iTunes and what followed has nuc'ed the retail CD market The record labels have really lost their strangle hold on the retail music market. They may own the content but iTunes et al own the marketing. The will do everything that can to prevent this from happening even to the point of loosing money. they can always blame those nasty pirates for loosing money. I have always found it funny when the studios bitch about loosing money when thanks to cleaver book keeping there has never been a movie that has made a profit.
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption

elefante72

join:2010-12-03
East Amherst, NY
Most people are not aware of the finer points of these media contracts. In the case of Netflix, you may see a movie with the title "Rental" on it. This is a special copy that the movie studios put strings on and sell at a discounted rate with all of the "goodies" stripped out. HOWEVER with these contracts, the studios also force Netflix and the like to DESTROY the copies when they meet their useful life "window", so they cannot go back into the resell environment, which is what ibooks and amazon are doing right now w/ digital "copies". You own the license "copy" but cannot resell it..a big crapper of the DMCA.

So when redbox buys retail, they get the FULL version w/ goodies DVD, and when they are done they can resell these DVD to make up difference in vig that they have to play by going through distribution. The studios really dont like this, because of course you are adding a used DVD into the supply distorting the price of the DVD (lower which is better). On top of that preferentially a number of people have seen the movie (rented) and have thus determined not to demand supply from the retail or resell market (studio worst case scenario).

By distorting availability, it has now become preferential for Redbox to purchase retail because it will have the utility of 58 days head start on netflix which in terms of media consumption is huge. By the time quickster gets it, redbox will have already made its return. This will only hasten quickster demise, but there will still be a portion that doesnt want to drive or care about release windows (me) and enough people. This just destroys the movies brand by constraining supply. Typical Kodak behavior. See where they are?

So this is a game of chicken they are playing, and it wont end well. They got TOO gready with these delays.

Rekrul

join:2007-04-21
Milford, CT
reply to Transmaster
said by Transmaster:

The bottom line is the Studio's are scared to death they are going to get "iTuned". iTunes and what followed has nuc'ed the retail CD market The record labels have really lost their strangle hold on the retail music market. They may own the content but iTunes et al own the marketing.

Yeah, it's really a shame that the studios are forced to do business with third parties and that they can't just set up their own web site where they'd have complete control...


Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

= Rekrul See Profile
Yeah, it's really a shame that the studios are forced to do business with third parties and that they can't just set up their own web site where they'd have complete control...

They have tried but the studio's back bite each other even worse then they do their customers. There is absolutely zero trust between, the studio's, producers, directors, writers, actors, electricians, best boys, Foley artists, set builders, agents, etc, even down to the person who cleans the toilets. There is such a history of ripping each other off that observing "Hollywood" is like a Primatologist watching Chimpanzee's killing each other over territory. When somebody like Steve Jobs manages to put the screws to one part of the entertainment business the paranoia multiplies, and spreads out like ripples in a pond.
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption