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Warner just released some of their new plans for distributing DVDs, and it looks like they are going to do things a little differently.

Warner is telling its wholesalers that they will no longer be allowed to sell to kiosk and mail-order companies, and that Warner will deal directly with them from now on. The problem is, they are saying they will not supply kiosk companies with DVDs until 28 days after their release.

Through a direct relationship, WHV can ensure that its titles are available through a variety of distribution models to serve all types of consumer preferences. WHV will be in discussions with both kiosk and mail-order subscription vendors, offering business options that will allow all parties to grow their respective businesses. The options offered to kiosk vendors will include a 28-day window, while mail-order subscription customers will also have a day-and-date revenue sharing option. Additionally, WHV has revised their wholesaler terms to prohibit the purchase and sale of WHV previously viewed product.
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So, while this is a different approach, the result appears to be the same: Redbox will have to go elsewhere to get Warner DVDs from now on in order to have their movies available on release day.

This new distribution model is set to start in October of this year.

Thoughts? Comments? Questions? Leave a comment and let us know…
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Thanks to Jim and OhNoNotThemToo for tipping me off to this news.

41 Responses to “BREAKING NEWS: Warner Bros doing it different, still hurting Redbox”

  1. Visitor [Join Now]
    Ginger [visitor]

    Well, that’s just stupid and annoying. I love Redbox. The concept is awesome, the price is great and it’s really convenient. Companies like WHV aren’t doing themselves any favors by nitpicking stupid things like this. All they’re doing is making themselves look bad. Why should I have to go spend an extra $2-3 to rent their precious movies from a video store?

    • Visitor [Join Now]
      Rob [visitor]

      Ginger, I agree. The thought is just dumb. I don’t care if I have to wait another month to see their movies. I’m not going to pay more to rent them from lets say Blockbuster, I will just rent another companies movie out of Redbox and wait the 28 days to rent their new (now old) release.

  2. Visitor [Join Now]
    omar [visitor]

    So I get my movies from redbox (kiosk) netflix (mail order) and retailers like walmart and bestbuy. I usually rent the movie if I like it I purchase it (about 20% of all my rentals) if the studios decide to use this method it will not make me buy more or pay more to rent. I will just not buy any more movies from the studio just becouse they made me wait longer to rent it. But what happend with the movies I like and whant to own? Well they want to play mean I can do it to. I could give my 30mps unlimited internet a new use. Viacom, Warner and Fox are the one pushing people to this. They should thank redbox and netflix not try to fight them.

    • Visitor [Join Now]
      just me [visitor]

      I’m with you, Omar! I rent from both RedBox and NetFlix. If I like the movie I buy it. Not allowing their movies to be rented in those venues for 4 weeks after general release is only going to direct my movie $$ to moves i AM able to see when they come out. Not a smart move.

  3. Visitor [Join Now]
    Zach [visitor]

    Geez this is crap…first it was Universial and then it was Fox, and now its fricken Warner Bros. What the hell is the big deal of having the movies rented on the damn release date?!?!?!

    • Visitor [Join Now]
      uByte [visitor]

      Its all about money! The same thing happened to the music industry almost 10 years ago with apple, Kazaa, and napster. They get scared over loosing money and react. Things change, and they should change there business model when it does and not punish the early adopters which set the trend for the rest of the world. Crap like this makes me not want to even want to watch movies anymore (now I have reacted see how it works).

  4. Visitor [Join Now]
    rb [visitor]

    I’m reallynot following this whole dispute between Redbox and —Fox, Warner, whomever, etc. When new release dvds become available to buy at retail–Walmart, Target, etc.–was/is Redbox buying its new release dvds straight from the studios , or retail from places like Walmart, Target, etc. to fill their kiosks? I don’t see how the studios can prevent Redbox from buying dvds retail same day they are released to fill their rental kiosks. If anything, maybe Redbox will have to buy retail to make sure the new release dvds are available on the day they are released, and then maybe make it a $2 rental charge for the first 30 days . This way Redbox can recoup extra money they spent on retail dvd purchases AND LAWSUITS, and still make available new releases for those who can’t wait 30 days to rent/ are willing to pay the $2 within the first 30 days for a new release. After 30 days, the new release rental goes back to $1. If the consumer wasn’t that eager to see the movie while it was at the theater, certainly the consumer can wait another 30 days after its release to dvd to rent it for $1. If not, pay the $2 within the first 30 days.

    • Visitor [Join Now]
      Pam [visitor]

      rb — you are so correct! What an alternative for Redbox!! You sure you don’t work for them? They should hire you!!

  5. Visitor [Join Now]
    FoxWins [visitor]

    As predicted, Warner Brothers joins Universal and Fox in walking away from Redbox. Collectively, these studios represent 50% of the market.

    It’s one thing to drive to Best Buy to get Universal titles, which represent only a small part of the market. But it’s quite another to drive over to retailers for 50% of your inventory.

    Higher costs plus logistical nightmares means that the current Redbox model is done. All good things come to an end, and I hope you misers enjoyed it while it lasted.

    Soon, Redbox will have to make a choice between $1 pricing and day 1 availability. It won’t be able to offer both.

  6. Visitor [Join Now]
    snowdog512 [visitor]

    These studios are completely lame. Redbox is great because you can finally see their movies at a reasonable price ($1). If they won’t release them to Redbox for a month, that doesn’t mean I’m going to go start buying their DVDs or paying $10 to see them in a theater. I’ll just wait until they are available or “something”. All they are doing is giving themselves a bad name with the large population of Redbox users out there.

  7. Member [Join Now]
    SapphireIsle [sapphireisle]

    Half the time I don’t even know when new movies come out, (If I want a movie I add it to my Netflix queue, even just as a reminder if nothing else) so to me what difference would a month make?

  8. Member [Join Now]

    might as well say Goodbye redbox… at least locally Redbox will not make it charing 2 bucks per movie….

    1.00 per show is easy grab using a credit card… stop by one night and grab 2 or 3 movies for 2 to 3 bucks on a credit card… jack that up to 2 bucks per movie we are now talking 6 bucks instead of 2…. no thanks i will pass

    and for those who do not think jacking up the rates will force them out of business… we had 2 locally 1.00 2nd run theathers around here… They jacked up the price to 2 to 3 bucks instead of charging 1.00

    Both were belly up within 6 months…

    at 1.00 you would see the place on saturday night with say 50 to 100 people

    at 2 to 3 bucks you would be lucky to see 10 people at the most there

    bye redbox sad to see you go

    • Visitor [Join Now]
      Pam [visitor]

      That is a shame that you can’t come up off of an extra buck or two. Condsidering that movies now cost $10 perticket, it is still a great deal!!! You are only ruining your own entertaining.

  9. Member [Join Now]

    o by the way netflix 18 bucks per month 3 at a time you can get 12 to 24 movies per month so that is even less then 1.00 per month why are they not going after netflix and blockbuster

  10. Visitor [Join Now]
    ChadCronin [visitor]

    The greed of companies is ridiculous. When I really like a movie I usually go see it in the theatre and then put down $20 to $30 on a new release Blu-ray from Amazon Walmart or Target. Now in the past I would wait for the movies to show up on like Starz! or HBO and not really care, but then Redbox came along. I found myself renting alot of movies. I actually found some smaller titles as well as badly reviewed movies to be of interest to me and some resulted in additional title purchases I would have never bought without them. I am unwilling to pay more money to greedy companies, so I would not pay $2 or whatever higher cost to rent sooner. I would wait. I would not go to another rental chain. Under no circumstance would I buy a movie just because it was availble first over rental. I’m starting to miss the days when I rented/purchases movies based on looking for the title over now when I don’t rent/puchase movies based on looking for the studio. So sad. I am 100% behind Redbox!

  11. Visitor [Join Now]
    John [visitor]

    Warner just saved the movie business.

  12. Visitor [Join Now]
    Serenity [visitor]

    What is the rush? If you did not go to the theaters to see a movie on release day, I’m sure you can wait another month after it is released on DVD. I can see why Redbox is concerned, but I would think services like Netflix and Blockbuster are more of a concern. I’m partial to Netflix. In either case, any movie fan is likely to rent movies on the day they come out or 10 years later. What is the rush?!

    • Member [Join Now]
      ChadCronin [chadcronin]

      I get what you are saying. It’s not an overly huge deal to me either. If studios want to wait longer to get my money and mostly likely not less of it, that’s their choice. I’m getting tired of unfair business practices though. I’m tired of “Blockbuster Exclusives” and such where I can’t see a movie until I want to pay 1 companies price or am forced into buying (which I would never do). I see that they are doing this for money, but that gets confusing when they are still willing to work with NetFlix. When I had them in the past I would always send my rentals back the next day so the most ever I averaged per disc in a month was $1.50. I know of many people who paid an average of $0.90 to $1.25 on average per disc. So the studios can’t be making too much money with them either, unless there is so many fools out there forking over monthly payments and not hardly renting.

      • Member [Join Now]

        i cancelled my netflix yearly this year after they stopped sending me new releases.. Called up and they said .. people who rent under 8 movies per month are put up first for new releases… since was avg 14 to 16 movies a month (for the prior 3 month window) they said i would be lucky to get any new releases… That month i got 1 other was cartoons or old tapes i could rented from a video store for 25 cents each

        Total movies that month
        1 new release
        3 or 4 cartoons
        4 or 5 junk old movie (6 months or older)
        total was 8 to 10 movies.. i cancelled after that month.

        they said it was something new netflix was doing so it would be FAIR to all its memebers… I call BS on fair

  13. Member [Join Now]

    forgot to add this

    So we might as well say

    LAST HOUSE ON THE LEFT will not be in redbox come tuesday : (

    i thought they updated their systems on thursday.. Our local box does not show a single movie coming soon (guess nothing next week)

    • Member [Join Now]
      Mark [rb123456789]

      If the “this distribution model is set to start in October” statement is true, this week’s release will not be affected.

      BTW, when I rented two from a Redbox kiosk yesterday (Wednesday) at 10:30pm I was surprised to see the entire first row and half of the second on the first screen was “coming soon” DVDs, never seen that many before. Didn’t pay attention to the titles though, was in a rush. But that’s vastly different than your experience with “coming soon” titles.

      • Administrator
        Michael [administrator]

        In my market (Salt Lake City area) there is almost always at least 8-10 new releases “coming soon”, so I guess it just depends on where you are. The question is, will the movies be any good.

  14. Visitor [Join Now]
    JackTheRedBoxRipper [visitor]

    Simple…. 3-5 DVDs at a time x $1 each + Large Hard Drives + discipline to rip dvds in one night = $60-$100 in movies each time

  15. Visitor [Join Now]
    FalconFour [visitor]

    Someone. Please. Explain to me… why the HELL the studios are doing this?

    Okay, the studio executives are frickin’ idiots. But this is EXACTLY like saying “I’m not selling to you because you’re black”. EXACTLY. Every possible way. There’s no logical reason behind it, there’s no business motivation, there’s nothing. There is absolutely no reason for keeping Redbox from getting DVDs – not greed, because they are STILL SELLING them at the SAME price they sell to everyone else. The only reason would be because “Hey, you’re called Redbox and you rent out of a kiosk, we don’t like new technologies”. That’s not even a philosophical statement – it’s quite literally the only thing they could be saying. “Hey, you’re a new technology and… well, we don’t want to sell to new markets”. That’s the ONLY thing I’m seeing here.

    So can someone PLEASE try explaining to me what on earth “business sense” these braindead studios are trying to make here? Because so far, all I can make out is “hi, we’re idiots”…

    Also, yeah, I wrote a short English class essay based on the articles posted here recently… basically about how the industry is running out of feet to shoot themselves in…

    • Member [Join Now]
      Mark [rb123456789]

      It’s obvious why the studios are doing this: they believe kiosks are a large part of the reason their DVD sales are down 15%, and limiting kiosks will help their sales rebound and make them a lot of money. They may well be right.

      Your inability to see any reasonable business motivation at all by the studios doesn’t mean *they* are idiots, it means…

      • Visitor [Join Now]
        wackawacka [visitor]

        I know very few people who actually buy movies these days. The only good reason is to buy children’s titles because kids like to watch these again and again, or classics. The reason the sales are down isn’t because of Redbox, it’s because folks are realizing that it’s not worth it to buy, since most people only view movies once or twice. For the same price you pay for a movie, even if you pay $3 per rental, you can rent it five to seven times!

        Limiting or delaying kiosk sales will do nothing to change the trend. If I don’t buy movies now, I’m not going to buy just because I might have to wait a few more weeks to rent them them.

        • Member [Join Now]
          Mark [rb123456789]

          You may not believe Redbox is hurting sales, but the studios do, and they have the sales data to prove it. It wouldn’t surprise me if they could track Redbox’s expansion into a given metro area based on DVD sales of new titles at Walmart.

          While many people believe as you do (and I am one of them) that new DVDs are a bad value, there are still many others who buy them anyway unless there is a convenient alternative like Redbox. Redbox always talks about how their customers value impulse rentals, deciding to rent often as they walk past the kiosk in the supermarket. Well, studios value impulse sales as Walmart and Best Buy customers walk through their DVD racks, but if that customer has already seen the movie via Redbox the impulse is much weaker.

          • Visitor [Join Now]
            Darrell [visitor]

            Good points, Mark. I can see the business sense in delaying rental supply 30 days after release to increase sales. Don’t agree with the ethics, but I understand their position. I don’t understand why the three major studios are just targeting redbox and not blockbuster or netflix. That seems unfair, greedy and not entirely legal (or ethical).

            It won’t affect my rental pattern, I will choose to wait rather than pay blockbuster’s higher fees, but why not delay products to the other two major rental outlets as well? It just doesn’t make sense and will result in loss of revenue in the long run.

            And as a naturally born capitalist I find this type of manipulation to be repulsive. I believe in the free market system, that the customer is always right, and that lowering costs by increasing sales volume. This is a violation of our free market system, tinkering with the markets. This manipulation of the market is a blatant antitrust violation when you have 3 major studios controlling over 50% of the market involved in it. We should all write out Washington representatives urging the Department of Justice to act on this.

      • Visitor [Join Now]
        Jody [visitor]

        The reason everyone loves Redbox is because it is a cheap and convenient and fun thing to do when you have little money. Why would anyone think these same people are going to waste $20 on a new DVD instead? I don’t care what anyone says, if people want to see a movie they are going to find a way to watch it, so they might as well keep those $1 rentals a-comin’!

    • Visitor [Join Now]
      celkins [visitor]

      It is the “back end” (used) the studios are worried about- the kiosk and mail order business are flooding the used market and they are eroding new retail sales to the studios. If the studios are not careful they may go back to the old days of a VHS business model $100 new retail price for the first 45-90 days and then lower the price to a more reasonable level.

      • Visitor [Join Now]
        FalconFour [visitor]

        Well, whatever it is, I know that I don’t care when a DVD actually comes out. I only ever know a movie is out on DVD when the poster on the Redbox kiosk says so, and when I see it on the screen. The time between theater and DVD varies so wildly, I often forget about a movie until it comes out on DVD and I think “Oh, hey, I wanted to see that but I never had the [money/time] to see it in theaters”. Of course, if there’s too long a delay between it being in theaters, and being on DVD, I just download the thing (and the studio makes nothing).

        At no point along the way do I even consider buying the DVD. I never will. I have no need to keep a copy of a movie in my tiny, packed apartment. So with that said, it’s plain flat idiotic that studios (I seriously keep writing out “stupid” in place of “studio” and have to backspace) have their DVD model centered around DVD sales instead of rentals. I’m all but certain that the majority of people believe the same thing: Rental is the only policy worth considering.

  16. Member [Join Now]
    Bikemiles [bikemiles]

    Anti-trust violation. Triple damages to Redbox.

  17. Member [Join Now]
    Bikemiles [bikemiles]

    The anti-trust laws are to a large extent a “popularity contest”. Redbox is close to reaching a “critical mass” with it’s customer base. There is no reason that Redbox can’t add news to it’s email communications with it’s customers who want more movies cheaply. Politicians can be portrayed as getting “Hollywood money”. No reason Redbox can’t add a “Redbox news” to email correpondence with customers so long as Redbox doesn’t specifically endorse candidates or political parties.

    From waiting in line I get the idea that more than 90% of Redbox renters use email options. How many Redbox renters favor studios denying then timely $1 Redbox rentals? Not many. “Redbox news” would not be spam but instead a clearly marked addition to regular email Redbox sends.

  18. Visitor [Join Now]
    Homer [visitor]

    Both Fox/Universal and Warner are going to lose their shirts in the Redbox lawsuit that will be in the courts soon. You just have to wonder what is going thru the pea sized brains of their lawyers. Redbox will win on all counts and sue for millions in damages from these companies.

  19. Member [Join Now]

    well if the studios would make movies worth buying then i would not need to rent a movie cus the movies that came out this summer is so lame

  20. Visitor [Join Now]
    monkey [visitor]

    Who do you think is behind all this? Blockbuster!!!!!!!!!!!!!! Blockbuster is owned by Hollywood studios. Redbox steals all its customers and its money. Some people just can’t wait 28 days for a new release. Most likely redbox will lose some customers back to blockbuster. As for me, I am a one-dollar-a-movie man. I will wait.

  21. Member [Join Now]

    Will this be 2.00 for the first nite and then $1.00 for additional nites? I drive too far to get a movie for a dollar . Just to get 1 movie not worth it. Now would be the time for redbox to put the not so popular movies in the box. Give the movies that don’t get to the show a chance. they would be glad to sell thier movies for rental. The show movies are not all that good anyway. Let the big shots suffer awhile. They will think twice when they are’nt getting anything.

  22. Member [Join Now]
    NickJensen [nickjensen]

    Could it be that Redbox is being targeted because the number of rentals of each individual kiosk DVD disk is much higher than the number of rentals for each NetFlix or Blockbuster DVD disk. So the total disks sold to the rental market is droping for a given number of viewings. Of course, this neglects the fact that thousands of people wouldn’t choose to rent so many disks if the price was higher or the conveinence was lower.

    So even though a studio charges the same price to RedBox for the DVD, because each DVD is seen by so many more people, the Studios may believe that revenue generated for the number of viewings has been seriously reduced by the Redbox business model.