Blu-ray is finally starting to make inroads with consumers, and the 28-day windows much of Hollywood is imposing on Redbox and Netflix are beginning to boost margins. Such was the consensus among major studio heads participating in a panel at Blu-con 2010 today.
Blu-Ray
With revenue from Blu-ray looking to reach the $2 billion mark this year, Fox Home Entertainment president Mike Dunn was bullish on the format’s chances:
“We’re finally going to see (Blu-ray) go into the minivan . . . It’s now a good value for mom and the whole family.”
Sony Pictures Worldwide Home Entertainment president David Bishop agreed with his colleague:
“We’re getting double- and triple-digit growth in Blu-ray catalog sales . . . I think we’re finally at a point where we’re going to see that market shift.
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28-day Delay Windows on New Releases
Universal Studios Home Entertainment president Craig Kornblau believes that consumers are going to accept delayed release windows and conform to Hollywood’s objectives:
“Over time, more and more people are going to understand that there’s a window, and if they want to see (a movie) on the day it comes out (on DVD and Blu-ray), they’re going to have to buy it,”
Warner Home Video president Ron Sanders agreed, adding an ominous reference to the fact that the month-long window could be extended even further at some point:
“To be honest, 28 days is a little shorter than what we really need, but there will be a chance for this to get looked at again later.”
Your turn to comment, Insiders. Will Hollywood see its investment and hope in the Blu-ray format justified this holiday season and afterwards? How about Sanders’ comments about 28-day windows needing to be lengthened? Are you willing to buy movies upon their release instead of waiting a month (or longer) to rent them?
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(via The Wrap)
There was talk, a few months back, of Warner looking to go to 60 days on the NR window for Redbox and Netflix. It will be interesting to see if they push it that faar.
Things to look for in 2011
-3 major studios to try a $29.99 VOD 30 Days after the theatrical street date. Look for a big push from Apple, Amazon and Vudu to get this deal.
-Sony will exercise a 28 day window with Redbox on titles over $50 million, which is what they are doing with Netflix.
-Warner will exercise a 45 day window with Netflix and Redbox with Fox and Universal pushing for the same.
-Redbox will be in a heavy battle with Netflix for the rights to Starz digital distribution rights. Redbox wants to make an grand entrance to the streaming world. I expect Redbox to overbid but ultimately get the Starz package away from Netflix.
-Customers will find less and less New Release DVD’s in Redbox and more Blu-Ray and Video Games. With a push towards digital streaming late in 2011.
45 probably won’t fly with redbox. If studios push too hard redbox can always go back to buying diverted product. Not optimal but it is an option. I like the idea of windowing specific titles. No reason to not do this for every studio.
I don’t think they will go for starz but they may. Their consumer, generally speaking, is less ready for a streaming option.
Games and bluray is the best way for redbox to raise prices. Perhaps redbox will go to variable pricing and let the consumers decide what they want to pay (especially if they are buying digital rights). I’m torn though because part of the beauty of redbox is how simple the pricing mechanism is. They’d probably prefer variable pricing over 45 day delays. It’ll be an interesting year for sure.
I don’t think Redbox has any option but to go 45 if the studios ask them to do so. The workaround was not working before and it would be even more difficult now.
Just be happy if they only ask for 45 days. The studios will love this because they can supply Redbox with the non-sale returns from Wal-Mart, Best Buy and other sellthrough retailers. 60 days would make this even easier but I suspect that would be pushing too hard.
There’s no way the studios could get returned B&M product to redbox to make the 45 days. The returns process takes a long time, then freight back, returns processing, freight time to distribution, then making the product rental ready…maybe if it was a 60 day window, but 45 seems unrealistic.
‘I don’t think Redbox has any option but to go 45 if the studios ask them to do so’
Oh that makes sense. If they could have gotten 45 days when all the 28 day deals were struck earlier this year they clearly would have taken it. Sorry but at a billion in revs and growing with the first sale doctrine in hand redbox does not have to do everything the studios ask them to. That is clear.
You still think the president should be fired b/c he pissed off all the studios. LOL. The world passed you by man. He deserves a raise (not to big)!!
Wait for it. You’ll love the sequel.
Bring it chicken little.
This sums up the attitude the major studios have for us consumers: “consumers are going to accept delayed release windows and conform to Hollywood’s objectives.” They don’t care what we think and want. They want us to accept and conform to whatever ridiculous greed-driven changes they come up with next.
I am sure I’m not alone with not accepting or conforming to these changes. I will continue to: not purchase DVDs on their release date; rent DVDs for $1-$2 from Redbox and Family Video even if I have to wait; borrow DVDs from friends and family; watch movies online for free.
I’m not going to buy a DVD just because I can’t rent it the first day out. I already know when a movie comes out if I’m going to rent it or buy it and a 30-day window isn’t going to change that. Go from a $1 rental to a $20-25 purchase? Forget it.
Here’s a thought, more like a reflection back on my take on all this. Things have definitely been happening with the movie industry lately, in terms of how people get to see movies. Looking back at how this has affected my family – well, the result is we have been watching a lot less movies. And we don’t miss it a bit. Let the studios experiment with more and more aggressive schemes of trying to extort more money for less content from us and let’s see who depends on whom, in the end.
Agree with you 100%, JBG. This studio greed is getting worse by the minute. And we’re seeing fewer movies in our house too.
Did any of you rent Toy Story 3 yesterday? If so, did you notice that the special features were missing from the rental disc? Access the special features and you’re taken to a screen explaining that in order to enjoy the special features, you must purchase the disc on DVD or Blu-Ray. So now, even rentals have become bare bones.
This push to extract more money out of our pockets with new formats, more options, longer delays – it’s going to bite them all in the ass. Because to be honest, the entertainment quality isn’t worth it.
Same with the new “Nightmare on Elm Street”. It didn’t even have Scene Selection. You always had to start at the beginning of the film and guess where you left off.
I have found myself watching more classic TV series instead of movies as of late.
It seems to me like the movie industry is starting on the same slump that the audio industry is just now adapting to. You can’t FORCE people to keep buying. You have to entice them. Like others have said, the delay makes no sense logically. I won’t pay an extra 20 bucks to buy it since I can’t rent it.
They’ll have to wake up and see Redbox and Netflix for what they really are, major consumers. They aren’t costing you anything they are paying more than enough to make up for what trivial revenue you would have gotten without them.
I’m a collector so I actually prefer to buy- I like the studios pushing sales like this a LOT more than I liked what they did back in the VHS days, which was to price most tapes from $70-100 since they knew most copies sold would be to rental stores. They threatened to do this with DVD too during its first few years, but thankfully that didn’t happen. (Last year Paramount did release a few DVDs as rental-only, but searching online they could still be found for around $30. Looks like they’ve given up on that anyways.) I got into laserdiscs a few years before DVD came out, and most movies on that averaged $40 each. They’re practically giving DVDs away; some Blu-Ray discs are overpriced but I’ve gotten a lot pretty cheaply- if they keep lowering the prices on those, I’ll keep buying more!
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28 days is too short?! For God’s sakes!!!!
I never watch a movie more than once, so buying movies is out of the question for me. I would wait as many months as it took to rent it.
I fear what will actually happen is that this will cost the industry money. If I have a friend who owns the movie who lends it to me to watch, the industry loses my rental. But as long as it’s available by rental, I’ll pay the $1.50 to rent the Blu-ray from Redbox.
In the broad scheme of things, if they don’t make movies available for legitimate rental on Netflix on the same day the movie is available for purchase, I believe more underground illegal uploading and downloading of movies will fill that void. This is a bad move for the movie industry.
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Dude, check the spelling and reread it before posting. It makes you sound like an idiot.
JMark, Dont you understand he’s trying to act cool. haha….yep…comes across as idiot though.
“Are you willing to buy movies upon their release instead of waiting a month (or longer) to rent them?”
nope. i’ll wait.