Inside Redbox is the #1 "Unofficial" Redbox Online Community for Redbox Codes, News and more. Inside Redbox is not affiliated with Redbox Automated Retail, LLC.

If there’s anything that we’ve learned from Hollywood studios over the last few years, it’s that most of them hate the idea of cheap movie rentals. The studios have bullied Redbox, Netflix, and now Blockbuster, as well as driven other cheap rental services out of business. Why, then, are studios licensing content to YouTube to rent for as low as 99 cents?

YouTube recently added hundreds of major Walt Disney films, and also offers major new releases such as Harry Potter and the Deathly Hallows: Part 2. The last Harry Potter film, you will remember, is at the forefront of consumer dissatisfaction with Hollywood’s UltraViolet digital initiative.

BTIG Research analyst Richard Greenfield is unsure of the wisdom behind licensing content that undercuts the studios preferred distribution methods:

“How does the industry push UltraViolet cloud storage when you can rent top content within days of release for only 99 cents and access it on a wide range of devices, including your television?” Selling Blu-rays at $20 each or even at $10 or less on Black Friday also appears quite challenging relative to YouTube’s pricing . . . Renting failed [box office] movies at heavily discounted prices such as is one thing, however, newly released “Harry Potter” at 99c is a whole other story,”

What do you think, Insiders? Is Hollywood shooting itself in the proverbial foot by undercutting its UltraViolet model with cheap new release rentals via YouTube?

(via Home Media Magazine)

 

15 Responses to “Studios Shooting Themselves in the Foot with 99-cent YouTube Movie Rentals?”

  1. Visitor [Join Now]
    Vernon Dent [visitor]

    -Is Hollywood shooting itself in the proverbial foot by undercutting its UltraViolet model with cheap new release rentals via YouTube?

    Maybe the studios are starting to wise-up! Waking up and smelling the coffee: getting their costs in-line and trying, at least as an experiment, to see if YouTube affords a sustainable business models, in the same way that the music business, likewise smartened up!

  2. Visitor [Join Now]
    Wintermute [visitor]

    Who cares? Good movies will be made WITHOUT the massively overpaid “stars” and executives.

  3. Visitor [Join Now]
    David [visitor]

    Hollywood will continue to shoot themselves in the foot, becuase if they keep making anti-competitive moves, they will be taken to court over monopoly law violations.

  4. Visitor [Join Now]
    Firstlawofnature [visitor]

    This is like a flash sale, only around for a week or two. $.99 internet rentals over the long term are probably not in the cards as sell through would evaporate. Google surely paying studios more than $.99 a pop.

  5. Visitor [Join Now]
    Bogart [visitor]

    This is the most I have rented in youtube, or even my whole movie watching, because it is easily accessible and definitely affordable.

  6. Visitor [Join Now]
    Jack [visitor]

    Studios hate redbox/netflix with a passion. They will do anything to cut into their revenues. Google is willing not because they are making anything (they’re probably losing $$), but think they can eventually get a piece of the pie.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      Their hate for the low cost/popular distributors is exceeded by their love of sell through. If they stop making DVDs they would cut into redbox’s revenues but would surely come out behind overall.

  7. Visitor [Join Now]
    tndawg [visitor]

    Sounds like the .99 is to hook people and take away from cheap DVD rentals. When the DVD rental boxes have been destroyed then the price will go up a lot and the cheap rentals will be over.

    Resist people! Resist!

  8. Visitor [Join Now]
    Luis [visitor]

    Well..no matter what the reason i love it cuzz we are getting cheap movies. Tental and sure they want some cake too

  9. Visitor [Join Now]
    txbomer [visitor]

    The next thing I see that needs to be done is for Dish net work realize that it’s cheaper to go a pay a dollar to rent a movie than to pay there outrageous price for there TV rentals. You normally can get the movie quicker from red box than at dish network cable net system

  10. Member [Join Now]
    bigjw

    I just wish they would make it available on Roku. I don’t and won’t watch a movie on my computer when I have a 42″ HD flat screen. Get with the program YouTube!

    • Visitor [Join Now]
      Hollywood Don Taylor [visitor]

      i TOTALLY CONCUR-Y SIT & squint when that HD in the living room is crying out for attention. If u don’t mind may I say that this is the 1st time I’m reading about this subject. I don;t really care to rent from the “tube.”
      I must confess, I do rent from both RED & BLUE boxes yet, I WILL NEVER pay the Xtra $$ to ‘blue” just because the movie is out 28 days b-4 Mr. Red.
      To me, I’m losing 2 additional rentals & besides, if I waited that long-what’s 28 more days.
      I DO LOVE MY ROKU Too !!!!!!!!!!!!! Free DVR w/o the monthly charges +tx. No more of either Dish or cable. I also have a nice Roof Antenna (OTA)

      FREE TV in HD ! We just need more ENGLISH speaking stations here in South Fl—–sabe` ??? :) make someone smile tonight.

  11. Visitor [Join Now]
    Catmeringue [visitor]

    Maybe none of Hollywoods movies are worth more that 99 cents anyway!
    And who watches movies on a computer to begin with???

  12. Visitor [Join Now]
    Nosgoth1979 [visitor]

    I don’t have any problems with Google working some TV deals but this doesn’t seem like a good idea. For one, Youtube is synonymous for its user created content, and it’s going to take a lot to change that image in the consumers mind. Secondly I worry that this new direction heralds a diminishing of the user content. I’ve enjoyed some great web series’ by some highly talented indie filmmakers who used Youtube as a jumping-off point. Sanctuary started there before being picked up by SyFy. The Guild is a hilarious series, and The Joker Blogs are fantastic. Will shows like this find the audience they deserve if Youtube gets crowded with high-budget Hollywood productions?

    Finally, I also don’t understand why, from a consumer standpoint, this would be a good idea. There are many other ways of renting movies, and most of them seem far better than pay per view through Youtube. For example, even though, as a DISH Network employee and subscriber (and have a ton of programming through my satellite), I like having a lot of options so I had Netflix for about a year up until the Blockbuster Movie Pass came along that’s even better. I mean it’s tough to beat having a huge variety of instant streaming titles, movies and video games by mail with the option of in-store exchanges and a bunch of movie channels for $10 a month. How many pay per views could you get a month for $10 through Youtube. It just doesn’t add up.

  13. Visitor [Join Now]
    Darrell [visitor]

    They’ve already shot themselves in the foot with their overpriced movie tickets and media prices. I never go to a theater or buy physical media anymore. Streaming is my way of life now, wake up Hollywood, I would gladly spend .99 for a rental.