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Red Box Stands Up to Warner 56 Day New Release Delay
As Warner Brothers Drives New Release Fans to Piracy
by Karl Bode Wednesday 01-Feb-2012 tags: Video · business · consumers
The other day we noted that Warner Brothers had not only convinced Netflix to delay new release DVDs by 56 days, Netflix also agreed to refuse to even allow users to add upcoming releases to their queue until 26 days after release. Studio executives believe this will drive users to buy more DVDs, but as everybody except for the entertainment industry has figured out, simply acts to annoy users and drive them to explore piracy. In a statement, RedBox says they have refused the 56 day new release delay, won't renew their contract with Warner Brothers, and will get the movies from retail as they go on sale:

“The Redbox contract with Warner Brothers to acquire movies directly expires today (January 31, 2012). Redbox will continue to provide our consumers with affordable access to new release movies from all major studios including Warner Brothers at our more than 28,000 locations nationwide. We will work to provide Warner Brothers’ movies through alternative means. Redbox maintains direct working relationships with every other major studio,” said Gary Cohen, senior vice president of marketing and customer experience at Redbox.

When they do try to go against studio wishes and straight to retail, RedBox has run into problems with Warner Brothers and Fox going to retailers and striking deals that restrict the number of DVDs RedBox can purchase.

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UhWhat

@k12.ca.us

Isn't a DVD sale still a sale?

Wow, so the studios don't want Redbox and others buying DVDs retail, just consumers? What idiocy.

A sale is a sale is a sale. Who cares who buys it as long as it gets bought and the studios make the money?

Sure Redbox then rents that DVD out, but consumers aren't likely to buy movies they haven't seen in the theaters or via rental so even if the consumer goes to Redbox first, it might promote a sale if the movie is worth it (or the consumer is interested in the extras that don't typically come on teh rental discs).

If monkeys ran our government and our corporations I think we'd be better off. When will Planet of the Apes occur again?

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Isn't a DVD sale still a sale?

said by UhWhat :

Wow, so the studios don't want Redbox and others buying DVDs retail, just consumers? What idiocy.

A sale is a sale is a sale. Who cares who buys it as long as it gets bought and the studios make the money?

The studios won't make as much money.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Isn't a DVD sale still a sale?

said by fifty nine:

The studios won't make as much money.

That's the thinking of the studios but I think we all know that Redbox would be a new retail customer for DVDs, as most people who use Redbox and other services like these are not buying DVDs to begin with, nor would we buy DVDs simply because we could not rent them.
--
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Pirate515
Premium
join:2001-01-22
Brooklyn, NY

Re: Isn't a DVD sale still a sale?

said by pnh102:

That's the thinking of the studios but I think we all know that RedBox would be a new retail customer for DVDs, as most people who use RedBox and other services like these are not buying DVDs to begin with, nor would we buy DVDs simply because we could not rent them.

Can't RedBox get into legal problems by buying retail DVD's and then renting them for profit? AFAIK, retail DVD's are for customer's own private viewing. RedBox might be thinking like the majority of us: once you paid for it, it's yours to do as you please, but according to studios, that may not be the case. Now, it's impossible to police when regular Joe Schmoes like us are lending them to our friends, but when a company like RedBox officially is rents them for profit, it's different.

Not that I am a big fan of what studios are doing with these delays, but IMO the only way to rent it the legitimate way is on their terms.
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Isn't a DVD sale still a sale?

said by Pirate515:

Can't RedBox get into legal problems by buying retail DVD's and then renting them for profit?

No.

»en.wikipedia.org/wiki/First-sale···einstein

The warnings against renting printed on DVDs mean nothing.
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Drex
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said by UhWhat :

If monkeys ran our government and our corporations I think we'd be better off.

From what I've seen with the government, I think they already do.
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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

Re: Isn't a DVD sale still a sale?

Congressman or Senator.....................(fill in the Blank)

Of course I have always though IR Baboon looked like Rep Barney Frank.

BF69
Premium
join:2004-07-28
Camden, TN
Yep Netflix and Redbox buy MILLIONS of DVDs a year and yet the studios want to kill them off. REAL fucking smart. Kill off your biggest customers.

cdru
Go Colts
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Fort Wayne, IN
kudos:5

Re: Isn't a DVD sale still a sale?

Redbox and Netflix buy millions of DVDs whether they get a wholesale discount or not. The studios know that they are going to buy them regardless.
gorehound

join:2009-06-19
Portland, ME
Boycott the MPAA & Big Content Now !!! Keep your money and don't let the greedy pigs get any of it.
andyross
Premium,MVM
join:2003-05-04
Schaumburg, IL

Netflix doesn't want DVD's and doesn't care

Basically, NF bends over for TW and the studios because in the streaming world, the studios have 100% control. Unlike the physical world, there is no First Sale law for streaming or even downloads.

NF wants to get rid of DVD's as soon as it can. That means it cannot do anything that will anger the studios.

NickD
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Re: Netflix doesn't want DVD's and doesn't care

This might be an opportunity for a rogue website in another country to make a profit. Start a subscription service similar to Netflix, stream any movie and ignore the C&D's. People will think it's legal because they're paying for it. If they're in the right place (such as a third world country) they won't get shut down unless the US declares war on that country. Plus they can advertise their service as being available worldwide, which Netflix can't do. How does the Pirate Bay stay up so long despite being the target of every copyright enforcement agency in the world?

Hollywood would lose a lot of the Netflix money and would have to change their terms to allow Netflix to compete with the illegal site. Right now, every movie in the entire Netflix catalog is able to be pirated for free. But people pay for Netflix for the ease of access and integration with multiple devices, as well as the fact that it's legal and affordable. If a new website pops up that has the exact same service as Netflix, except that it has many more movies available for streaming and it's illegal (but the site claims it's legal), people will switch to it.
slckusr
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kudos:1

Re: Netflix doesn't want DVD's and doesn't care

I thought some guy tried to do this with network connected dvd players and failed. failed as in government\business said nono

Mr Fel
Flynn Lives
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Louisville, KY

Re: Netflix doesn't want DVD's and doesn't care

That's because the company was within the country. He's talking about a company outside of the country.
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fifty nine

join:2002-09-25
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kudos:1

Re: Netflix doesn't want DVD's and doesn't care

said by Mr Fel:

That's because the company was within the country. He's talking about a company outside of the country.

I have one word for you - megaupload.

Mr Fel
Flynn Lives
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Re: Netflix doesn't want DVD's and doesn't care

They had servers in Virginia, that's how that whole mess started.

vpoko
Premium
join:2003-07-03
Boston, MA
Good luck streaming video from another country. International bandwidth ain't that great.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Netflix doesn't want DVD's and doesn't care

said by vpoko:

Good luck streaming video from another country. International bandwidth ain't that great.

Not only that, but local laws in a lot of other countries are stricter. And it would have to be a foreign TLD too since .com could be seized by the FBI.

Camelot One
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join:2001-11-21
Austin, TX
kudos:1
said by NickD:

This might be an opportunity for a rogue website in another country to make a profit. Start a subscription service similar to Netflix, stream any movie and ignore the C&D's. People will think it's legal because they're paying for it. If they're in the right place (such as a third world country) they won't get shut down unless the US declares war on that country. Plus they can advertise their service as being available worldwide, which Netflix can't do. How does the Pirate Bay stay up so long despite being the target of every copyright enforcement agency in the world?

Hollywood would lose a lot of the Netflix money and would have to change their terms to allow Netflix to compete with the illegal site. Right now, every movie in the entire Netflix catalog is able to be pirated for free. But people pay for Netflix for the ease of access and integration with multiple devices, as well as the fact that it's legal and affordable. If a new website pops up that has the exact same service as Netflix, except that it has many more movies available for streaming and it's illegal (but the site claims it's legal), people will switch to it.

I guess you haven't heard: You can now be arrested and extradited to the US to stand trial for breaking US copyright laws, even if you and your "Service" have never stepped foot on US soil. All thanks to the post-9/11 anti-terrorism laws.

»www.theregister.co.uk/2012/01/13···_piracy/
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Romney2012
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said by andyross:

Basically, NF bends over for TW and the studios because in the streaming world, the studios have 100% control. Unlike the physical world, there is no First Sale law for streaming or even downloads.

NF wants to get rid of DVD's as soon as it can. That means it cannot do anything that will anger the studios.

Netflix doesn't want to be in DVD business at all. It is all to their benefit if DVDs dry up altogether. So, of course they will go along with TW's plan. But once DVDs do dry up, they are next on the studios hit list.
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dvd536
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said by andyross:

NF wants to get rid of DVD's as soon as it can. That means it cannot do anything that will anger the studios.

Of course. they'd rather only offer their bitstarved crapola so bandwidth costs are low.
FORGET about watchable content from NF!
AstroBoy

join:2008-08-08
Parkville, MD

I would perfer a retail DVD/Blu-ray

The rental disks don't have the extra content. So I would perfer a retail DVD/Blu-ray.

IllIlIlllIll
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Re: I would perfer a retail DVD/Blu-ray

said by AstroBoy:

The rental disks don't have the extra content. So I would perfer a retail DVD/Blu-ray.

id rather rent the disc that doesnt have the extra content and download/view the extra content from the internet to watch it than buy an overpriced disc with the extra content that im only going to watch once and not again for a quite a number of years.
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AstroBoy

join:2008-08-08
Parkville, MD

Re: I would perfer a retail DVD/Blu-ray

I am referring to the article. So I am looking forward to getting retail disks from RedBox. I do like the extras, sometimes.

IllIlIlllIll
EliteData
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Re: I would perfer a retail DVD/Blu-ray

said by AstroBoy:

I am referring to the article. So I am looking forward to getting retail disks from RedBox. I do like the extras, sometimes.

if they plan on carrying the discs that have all the features and extra content without the stupid 10 minute coming attractions and "how piracy is bad" commercials, then that is a big plus since most newer home disc players wont let you skip that sh_t to begin with and youre forced to wait it out.
all the more one reason why i prefer streaming over renting, because of the annoying 10 minute coming attractions and advertisements you cant skip (on newer players) before you can even get to the dvd menu to start the movie.
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Skippy25

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Re: I would perfer a retail DVD/Blu-ray

said by IllIlIlllIll:

because of the annoying 10 minute coming attractions and advertisements you cant skip (on newer players) before you can even get to the dvd menu to start the movie.

Im not sure what you mean by that, it has been a long time I have played a movie in a DVD player (new and old) that I have not been able to hit STOP, STOP, PLAY on and have it go directly to the start of the movie.

Are you implying that this "feature" has been removed from new players?

Twaddle

@sbcglobal.net

Re: I would perfer a retail DVD/Blu-ray

My Samsung BLuRay player does not allow me to skip through the 10 minutes of Previews and commentary at the beginning of the movies rented from NetFlix. Haven't purchased a Bluray at retail so don't know if a retail version is different. Anyone out there that can verify?

MalibuMaxx
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PS3 don't let you skip sometimes... luckily they can't past the 128x Foward Fast...

IllIlIlllIll
EliteData
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Re: I would perfer a retail DVD/Blu-ray

said by MalibuMaxx:

PS3 don't let you skip sometimes... luckily they can't past the 128x Foward Fast...

now that you mentioned it, it wont be long until their devs see it and push another dumb update to the PS3 that eliminates it
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elwoodblues
Elwood Blues
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HarperLand
It's commands embedded in the ifo's that prevent players from skipping or fast forwarding.

So unless you had a dvd that had alternate firmware (Google Apex660) or younhad dvds you downloaded younwere solution.

KrK
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The most annoying thing about the Rental versions of DVD's are the ones that have 20 minutes of previews and ads and they won't let you skip them. You have to just keep fast forwarding everything.
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dslcreature
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join:2010-07-10
Seattle, WA

Re: I would perfer a retail DVD/Blu-ray

said by KrK:

The most annoying thing about the Rental versions of DVD's are the ones that have 20 minutes of previews and ads and they won't let you skip them. You have to just keep fast forwarding everything.

Hit the menu button on your remote.

KrK
Heavy Artillery For The Little Guy
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Tulsa, OK

Re: I would perfer a retail DVD/Blu-ray

"Operation Currently Prohibited by Disc"

dvd536
as Mr. Pink as they come
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said by KrK:

The most annoying thing about the Rental versions of DVD's are the ones that have 20 minutes of previews and ads and they won't let you skip them. You have to just keep fast forwarding everything.

DVDfab takes care of that.
I rent rip return right there in the parking lot.

KrK
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Re: I would perfer a retail DVD/Blu-ray

Yes, that works, but these days the "authorities" think that is akin to terrorism and warrants international search and destroy missions.
--
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ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Restricting purchases

Trying to restrict purchases won't work, not really. Sure, they can try, but there are so many retailers selling DVD's that it won't matter much. RedBox will simply spread purchases out among several retailers and get all they need.

These idiots really don't understand how most people choose what to watch. I don't know of anyone who will, if they can't find a movie available to rent, run out and buy it, unless they can find it in the bargain bin for not much more than the rental price. If they don't find a title they were looking to rent, most will simply choose another one, or, if they can't find another one they like, they'll either watch something they already own or simply find something else to do.

These executives have spent so much time and money telling us that their shit is gold that they've actually started believing it themselves.

See 6 replies to this post
mogamer

join:2011-04-20
Royal Oak, MI

Sue WB?

If WB tries to restrict the amount of product a retailer can sell Redbox, then Redbox should sue WB. Maybe under RICO? I don't know the law, so I'm sure about that one. But one would think that WB would be violating at least one law dealing in restricting trade.

See 11 replies to this post

45612019

join:2004-02-05
New York, NY

Yeah right.

This won't drive anyone else to piracy who doesn't already know how to pirate. No one is going to spend the time waiting on a disc to arrive from Netflix or driving down to the store to go grab one out of a big red machine when they can just download it for free within minutes.

The only people who are upset about this are butthurt Netflix subscribers who are too incompetent to pirate and know they're going to have to wait or *gasp* actually pay a reasonable sum of money for their media that cost the studios millions to make!

If everyone rented and no one bought home video wouldn't exist. People who only rent leech off of buyers who actually support the studios. They make pennies from people who rent and hundreds of times more from just a single person who buys a $20 disc. When you rent you fork over your money to a middleman like Netflix, not to the people who actually made the shit you're watching.

See 11 replies to this post

jgkolt
Premium
join:2004-02-21
Lakewood, OH

aftermartket dvd

this will drive aftermarket sales. Redbox buying from retail and everyone else renting it from redbox. It is amazing to see the entrenchment to an older business model by warner brothers. Even anti competitive if they are doing this because they have ultraviolet.

dvd536
as Mr. Pink as they come
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Re: aftermartket dvd

said by jgkolt:

this will drive aftermarket sales. Redbox buying from retail and everyone else renting it from redbox. It is amazing to see the entrenchment to an older business model by warner brothers. Even anti competitive if they are doing this because they have ultraviolet.

I hated when redbox was buying retail discs[specially from walmart] because the better movies were "sanitized"
the redboxes INSIDE walmarts are all sanitized because that was a condition for placing in walmarts.

BF69
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Camden, TN

RedBox can forget about streaming

No studio is going to make any streaming deals with RedBox unless they agree to delays

mackey

join:2007-08-20
kudos:1

Re: RedBox can forget about streaming

said by BF69:

No studio is going to make any streaming deals with RedBox unless they agree to a PPV format with a minimum of $25/view on top of multi-week delays

There, fixed that for you. Netflix DID agree to WB's delays and, oh look, no streaming!

/M
Kearnstd
Elf Wizard
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Re: RedBox can forget about streaming

I find the aversion studios have to streaming funny. Streaming is a constant source of revenue with absolutely no overhead costs at all because Netflix, etc are footing the bills for the servers.
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BF69
Premium
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Camden, TN
said by mackey:

said by BF69:

No studio is going to make any streaming deals with RedBox unless they agree to a PPV format with a minimum of $25/view on top of multi-week delays

There, fixed that for you. Netflix DID agree to WB's delays and, oh look, no streaming!

/M

You realize that was in the UK not the US.

mackey

join:2007-08-20
kudos:1

Re: RedBox can forget about streaming

said by BF69:

said by mackey:

said by BF69:

No studio is going to make any streaming deals with RedBox unless they agree to a PPV format with a minimum of $25/view on top of multi-week delays

There, fixed that for you. Netflix DID agree to WB's delays and, oh look, no streaming!

You realize that was in the UK not the US.

I know. I couldn't find any articles pointing out how there are not many (any?) WB films available for streaming on Netflix, so I went with one that clearly showed WB not liking Netflix in any country.

/M

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.
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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.
Rekrul

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

= 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.
--
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mars1111

@concerto.com

People should stop watching these junk movies

How many good movies have you seen lately? I personally prefer to watch old good movies such as Lethal Weapon, Fifth Element, etc. instead of this modern junk.

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Re: People should stop watching these junk movies

said by mars1111 :

How many good movies have you seen lately? I personally prefer to watch old good movies such as Lethal Weapon, Fifth Element, etc. instead of this modern junk.

I got the fifth element on blu-ray about 3 weeks ago.. i haven't touched a DVD in so long.. had I still had my amazon prime membership I would be ordering like 3-5+ movies at a time Amazon is good for the movies not in stores.
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Snakeoil
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I was at the local retail store.

There DVD stock is looking slim. They are putting less of each type of movie/show on the shelves. I have noticed that with books as well. Instead of placing books spine out on the shelves, to fit more books. They are placing the books front cover out to eat up more shelf space. Physical media is on the slow road to extinction. Hollywood refuses to come up with a better alternative to Netflix, so they must punish netflix, red box, and hulu.

Though notice how companies that charge near full price for digital media are off the hook. Places like Itunes and Vuduu.
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antdude
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Buy DVDs?

People still buy DVDs? I thought it was all BRs and streaming these days. :P

Madness
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Re: Buy DVDs?

I'm going to assume they meant movie discs in general. But the last Blockbuster in my area is closing down, so Redbox will be the only game in town. Great for new releases, but not-so-much when one wants to hire older stuff (only option there will be the public library).
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Re: Buy DVDs?

said by Madness:

I'm going to assume they meant movie discs in general. But the last Blockbuster in my area is closing down, so Redbox will be the only game in town. Great for new releases, but not-so-much when one wants to hire older stuff (only option there will be the public library).

Yeah, mine is already gone. My friend's closed down and he bought many used DVDs for under ten bucks.

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