Comments on: Fox and Warner Seek to Dismiss Redbox Lawsuits

By: dillyclm

dillyclm — Tue, 06 Oct 2009 00:44:49 +0000

Okay Frick (Joey) and Frack (John small) this has nothing to do with the litigation going on with the studios. The unsubstantiated facts you spew are between VPD, Ingram and Redbox. Has nothing to do with the lawsuit going on with the studios. If VPD and Ingram are so sour about their agreements, them renegotiate it. But nowhere do you see the distributors complaining about their rental agreement w/ Redbox. You guys are comparing apples to oranges.

By: Redbox CEO: We Don’t Hinder DVD Sales, We Help Them | Inside Redbox

Redbox CEO: We Don’t Hinder DVD Sales, We Help Them | Inside Redbox — Mon, 05 Oct 2009 21:04:19 +0000

[...] by Shane Smith on Oct 05, 2009 under news After recently hearing more of the studios’ argument against Redbox, we now have the opportunity to get more of Redbox’s side of the story. In an [...]

By: AD

AD — Mon, 05 Oct 2009 16:31:15 +0000

Have you data to back that up?

By: John Small

John Small — Mon, 05 Oct 2009 14:50:15 +0000

In agreement with what? That the studios should have to change their entire pricing structure because a company like Redbox cannot make money unless they do.

There are plenty of businesses making a profit renting DVDs at ther price studios want to charge. Why should they have to drop their price in half because a poorly run company like Redbox can’t make a profit unless they do.

Redbox is the one that needs to learn how to adapt to the market. Either that or they will die out.

By: John Small

John Small — Mon, 05 Oct 2009 14:48:02 +0000

Thank for the ad hominem attack (look it up if you need to, otherwise you know what you were doing).

As I said and Joey continued to point out, Redbox has a business model that only works if the pay HALF the cost of Netflix or Blockbuster for their product.

Not the same price, HALF the price.

Do you think it is fair for one company to demand product for half the price? If every video rental company could buy their new product at $7.00 a piece, you would see a ton of store renting at lower prices. However that is not reality.

Please do some research before you attack poster who are telling the facts about the situation. You may want cheap rentals but the end result is that there will be no movies to watch. Great trade off.

By: Joey

Joey — Mon, 05 Oct 2009 14:04:23 +0000

Ingram and VPD were buying DVD’s back and in the beginning we’re trying to resell them in the $5 to $7 range only to see their used inventory continue to grow. Now, most are being offered for sale to their accounts for $1 to $3.

Redbox on average was only investing, after the buyback from the wholesalers, approximately $7.00 per copy.

By: Joey

Joey — Mon, 05 Oct 2009 13:58:35 +0000

The problem is red box doesn’t pay the same as Blockbuster & Netflix they had buy backs written into their distribution deals. So basically your whole arguement here is moot and that’s the root of the problem.

By: alans613

alans613 — Mon, 05 Oct 2009 13:08:56 +0000

Well said dillyclm! I am in total agreement here.

By: dillyclm

dillyclm — Mon, 05 Oct 2009 13:03:18 +0000

John “SMALL” (hope that isn’t in reference to the capacity of your brain). If Redbox pays the same amount for movies that Blockbuster & Netflix does, who gives the right to studios to try and dictate what they can rent/sale them for? Please research the “first sale doctrine” and all of it’s bylaws before commenting. That’s the whole basis of this lawsuit, is that the studios threatened the wholesalers with discontinuing to sell to them (exclusively Redbox) unless Redbox agreed to their terms. Why do you think you’re able to choose a different default browser on a Microsoft OS, because of an anti-trust guidelines. Believe me, this isn’t a road studios want to go down and lose. You’re a socialist and don’t believe in competition and capitalism. Assimilation or annihilation is the choice for these studios.

By: John Small

John Small — Sun, 04 Oct 2009 23:11:26 +0000

The problem, as has been repeated over and over again to the ignorant on this site, is that Redbox does NOT have a business model that works unless they can reduce their cost of goods to about half of what Blockbuster pays.

They had that deal in place and it may actually destroy two of the largest wholesalers in America (or at least cost them $40-50 million in losses minimum).

The studios have every right to demand that the wholesalers they sell to act responsibly. When they see two of the their largest customers heading rapidly towards bankruptcy because of bad deals they made with Redbox, they have every right to demand changes. Otherwise they would end up will Hundreds of Millions in losses when the bankruptcy occurs.