Yesterday we heard all about Fox and their new request to distributors to not sell DVDs to Redbox until 30 days after release.
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So, we learned that Fox sucks just like Universal.
Today we get to hear the Redbox response to this situation.
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From Redbox President Mitch Lowe:
We were informed of Fox’s position late yesterday. Redbox stands behind our convenience and value that we offer consumers, and we’re pleased to make DVDs available the day they are released.
Let me translate that for you Fox executives out there: “Screw you.”
Redbox has a good legal case if other rental sources get distribution upon title release.
As a compromise, production companies should create two simultaneously released SKUs, one for rental that is just the content plus: language; audio and chapter selection. The other should have added value features [special edition]: director’s cut and featurettes.
Fox started doing this months ago. Slumdog Millionaire was the first such release, though it was a rocky beginning because some retail stores accidentally bought or got shipped the rental-only release and their customers screamed.
I disagree that “Redbox has a good legal case”. The first sale doctrine means they always have the absolute right to buy copies at Walmart to stock their machines. They may pay more, but it’s not the law’s job to guarantee Redbox a bigger profit.
But lawsuits often hinge on details which aren’t obvious from the press releases, so who knows…
Sorry I missed your reply.
I knew Slumdog had rental and retail versions; but, I did no know of the screw up in the retail channel. Thanks for the mention.
Why doesn’t NetFlix complain about these Clayton-type [anti-trust] issues?
Netflix has quietly made the deals they had to make to keep their business growing and profitable. They have not in general made the studios their adversaries. In part this is because they see streaming as their future, and they need the studios as continuing partners in licensing.
Last year Netflix discontinued sales of used DVDs. They never clearly explained why, but I wouldn’t be surprised if they worked deals like what Redbox has done with Sony (lower priced DVDs in return for no resale). Netflix turns over their inventory much less often than Redbox, so used DVD sales were probably just a small profit for them compared to Redbox and easily given up to improve the big picture.
Thanks for the response Mark!
Screw Fox? Yeah right. Screw Redbox.
Let’s see….
Want a Universal title….you have to wait a few days…Redbox has to drive to BestBuy, purchase titles for full price, and stock its kiosks.
Want a Fox title….ditto.
Want a Sony title? Redbox gets it day and date but has to pay up. Redbox previously paid VPD $17/DVD upfront but got to resell the DVD for $6, for a net cost of $11/DVD. Now Redbox pays Sony $15/DVD upfront with no ability to resell.
Redbox needs the studios, not the other way around. For Redbox, the cost of doing business will increase.
Screw these companies! If they didn’t make HORRIBLE movies I wouldn’t mind buying them I have over 300 DVDs and I started renting them first on REDBOX to see if I wanted to own it. I have saved ALOT of money and storage space!! I now rent it for $1 then if I like it buy it if not the studios can take the “loss” on that movie. If there is a DELAY in the DVD getting to a redbox I will wait, if the DVD is not in a redbox it simply will not be purchased. Period.
REDBOX gave the consumer what it wants, DVDs without all the attitude or BS the rental stores gave….. HW Video sucked and often charged late fees when they weren’t late and wouldn’t give receipts when the OLD printers decided to take a coffee break and conveniently those were the videos that were always marked as late….
I support REDBOX!
i have 800 movies and was getting them free from redbox, i would send them a bogus email address and they would send me a free code sometimes up to 10 a day so i would rent them and burn them to disc and take them back the next day no i pay a $1.00 for the ones i want and burn them so i never pay retail for movies
RedBox does not drive to BestBuy to to purchase a Universal title
My FIL works for Redbox….You are only partly correct…they drive to
Blockbuster, Kmart, Target, Walmart, and any other place that sells
movies shortly after midnite to purchase the Universal releases.
i agree, screw the companies! Ever since redbox came around my area, i have stopped going to Blockbuster, and Hollywood Video. I’m not paying $5 or $6 dollars to rent 1 movie. I plan to fully support redbox through all of this even if i have to wait 30 days. You say screw redbox, go to blockbuster then and pay your $5 for a movie, then see what you say!
And why are you even on this site if you have bad things to say about redbox?
It’s so sad the way these studios are blackballing Redbox’s revenue stream. First they make millions of dollars on the first release in the theatre and now they are getting greedy for post release funds. If they really want to save money they should stop paying the actors millions of dollar for sub-par acting and the writers for crappy movies. Or how about reducing the cost of the DVD. I’m not paying $19.99 for a movie I only want to watch one time. $1 for one night is a better deal for me and I will wait the 30 days because I’m NOT buying the movie anyway! Sorry.
I agree,
I agree also ditto ditto ditto
I agree. Who wants to spend more money. I had a collection of VHS movies and technology got better I had to switch to DVD. Now Whats next?
If Redbox is not careful they will dirve the price of a rental up. They will have no choice. The studios own the rights of distribution to whom they please. If a proper business tone is not maintained by redbox in their internal dealing’s of runnig the business, as alway we the customer will pay. The cheap rental will get more expensive, understand they (redbox) will still make the same if not more of a profit, we will just accept paying more. Is this their evil plan?
It’s nonsense that Redbox will increase prices and make more profit. The biggest draw of Redbox is the $1 pricing. At $1.5 or $2, Redbox’s value proposition would disappear, and consumers would largely go elsewhere.
Redbox is in a tough spot. Its costs are increasing, as studios want their share of the pie. So Redbox will have to either increase prices, face a 30 day delay before stocking titles, or accept drastically lower margins.
Oh yeah, and what about Blu Ray? If studios are giving Redbox shit over standard def, they’ll murder Redbox over Blu Ray. There’s no way that the studios will let Redbox devalue Blu Ray with $1 rentals.
Honestly for me it has become about convenience and how I can hit a redbox quick in a busy day…while $2.00 would be crappy I think I could live with a small bump in rental rates if it meant keeping them around
Two dollars would alright. Considering the alternative. I would have to spend around 30.00 for my family to watch a movie in the theaters. I am willing to pay 2.00 for the convience of being at home.
ditto, i have 2 young kids, so going to the theater is out of the question, and my husband and i can’t always get a babysitter so i wouldn’t mind paying $2 a night. As of now, we pay $1.09 after taxes.
I have a feeling that in the near future the only rental options might be either:
Physical distribution via exclusive channels, or virtual distribution direct from the primary source of the intellectual property.
Virtual only would stink! Some of us live where there’s still not cable or DSL. Yes, I’m still on dial-up.
Can someone spell this out for me? what is fox/universal’s issue?
They are money hungry greedy little bastar$#$! It’s not enough to make millions at the box office and then through sales of dvds and blu-ray dvds…no they want a piece of the rental profits too!! There is just NO end to their corporate greed! Sad, very sad.
Corp Greed
Let us watch our @#$% movies!
So let’s see… BB or HV can charge me $5 to keep it for 5 days, but RB can’t charge me the $1 that I pay for the 1 day that I have the film? I don’t need a movie for five days and if I do, I’ll glady pay the extra money RB charges me. How is this different than NF that charges a monthly fee and lets you take out several movies during that period of time? How does this make sense? Wouldn’t they like MORE people to see the movies and get the word out about them so MORE people will rent or buy them?
I agree with CJ, this doesn’t make sense. There is more to it then just the $1 rental. If you do the math most rental places are around a $1 a day. Then put NF into the mix and it becomes an even bigger questions. I can pay a flat rate and get as many DVDs as I want for that fee. I just think there must be more to it.
For me personally, it’s not about how long I can keep the DVD or renting “high quality” Blu-Ray. I like it, because there’s a kiosk at a place where I am already shopping (Wal-Mart or a grocery store). I don’t have to drive to another store to pick up a movie, search around the store, and pay a higher price. It’s all about convenience. When I first began renting from RedBox, I think the whole thing of “doing it yourself” was another big appeal.
Like someone else who stated on here, I rent from RedBox before I go and purchase a $20 DVD, because of the crap that has been produced lately. There are very few movies where I will actually purchase even prior to this RedBox creation.
It’s corporate greed. Red box has actually listened to the customer and met their expectations. Because of this they are seeing profits unheard of in the rental business. On top of that they are selling these new releases for $6-7 as previously viewed to drive their overhead down thus making their revenue increase even more. Companies like Universal Studios and Fox Entertainment want a bigger cut of Redbox’s profit and wants Redbox to increase their rental fees so everyone makes more money. Redbox says “No” to all of this and now Fox and Universal want to penalize Redbox for not taking the bait. Redbox simply wants to maintain it value, convenience, and options for consumers.
The product is owned by the studios. They can do whatever they want with it. Redbox just wants to keep making more money and squeeze out the studios. Unfortunately, the studios own the product and have the upper hand. Given the circumstances, I think any one of you would do exactly what Fox is doing.
RedBox does not want to squeeze out the studios, your right the studios make the product so why would RedBox want to squeeze them out? Universal and 20th Century is Corp greed in action. No I would not do what Fox is doing
The movie is only owned by the studio until another company, or you, the consumer buys it. Then you should be able to do what you want with it. Are Universal and Fox saying that if I buy a movie at Walmart that if I turn around and sell it at my garage sale, they want a piece of what I make? Come on! Its the same concept.
Bala…get real
squeeze out the studios?
and then they can show movies made by who?
think before you type
So we have to wait a few days to rent the video if we don’t want to buy it upfront. No big deal…
I agree. We hardly ever rented videos until RD came to a nearby town. Just couldn’t afford it.
I can see that discrimination is alive and well at 20th Century Fox. Kind of makes you wonder what other areas of discrimination practices 20th Century Fox takes part in. Like the sign,”We reserve the right to refuse service to anyone”, (RedBox and the American consumer)I would venture to say that in this econmic time that some consumers forgo the use of a 20th Century Fox product if forced to go the brick and mortor places because of the price. RedBox is provideing a service and product to a cunsumer base that otherwise would not be there if it was not for RedBox. 20th Century Fox and Univerisal, this is Corp greed in action. Greg, Oklahoma City, Oklahoma
anyone have a good contact phone number for Fox?
we can all tell them how much we want to be able to rent their movies without waiting.
Good Idea
20th Century Fox #s,
Marketing-Shari Schroder (310) 369-4636
DVD and Media services-Steve Rosenburg (310) 369-2788 or
Jackie Peretti (310) 369-5476 also (310) 369-7877.
Studio Operator-(310) 369-1000
Where did you find these numbers? are they good phone numbers? Thanks
sup fellow redboxers
your site has come along ways mike
going to try to grab some dvds this weekend
anyone able to successfully use the steve100 code or whatever it is?
how about the new stop and shop one?
and im sure there will be many good things to come from redbox and the blockbuster kiosks
F Fox
thanks
Way to go President Mitch Lowe!! I love the literal translation by Inside Redbox! Screw FOX!! :) Aren’t they already making enough money with Seth MacFarlane’s help? Or are they trying to give MacFarlane another idea for his episodes by fighting with RedBox? ;-)
2 weeks ago, Blockbuster launched the $1 Express Box in Orlando area. The same Kiosk concept as RedBox, sleek looking BlueBox. So, is Fox requesting distributors not to sell DVDs to Blockbusters for first 30 days.
It would only seem fair that the restrictions on the kiosks are across the board. If you have two businesses that have similar business plans, how can you restrict one and not the other. I am not a legal expert, so if any of you are please post your opinions!! If redbox loses the lawsuit, they should just but the movies at retail, rent them, and then sell them used for $7 with a big FU to FOX and Universal. Obviously they will not be able to resale Sony and other companies that they have signed an agreement with.