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elefante72

join:2010-12-03
East Amherst, NY
reply to Transmaster

Re: The Real Reason why the Studios do what they do

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.