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The deal his company signed with Redbox denying the kiosk operator rental rights for four weeks after titles are available for sale is paying off already, says Warner CEO Jeff Bewkes. Bewkes claims that recent releases The Blind Side and Sherlock Holmes “sold more briskly than they might have otherwise” because of the delay window.

According to Bewkes, Warner is not the only studio to see a boost from the 28-day delay, though he declined to name names:

“Other studios that have taken advantage of the delay in rentals are seeing similar sales growth of DVDs, while other studios not using that window structure appear to be under-performing,”

Time to weigh in, Insiders. Does Paramount, who recently came to a very different conclusion than Warner regarding Redbox, have it wrong? Do you find yourself purchasing Warner titles rather than waiting a month to rent them?

(via Paid Content)

26 Responses to “Warner CEO: 28-Day Delay is Working for Us”

  1. Member [Join Now]
    SapphireIsle [sapphireisle]

    Either I intend to buy a DVD all along (like Harry Potter) or I can wait 28 days to rent it. So the delay window doesn’t effect me.

  2. Visitor [Join Now]
    Farva [visitor]

    It’s not like the head of a greedy movie studio would actually come out and admit their great idea to screw over consumers wasn’t as profitable as they hoped it was going to be.

  3. Member [Join Now]
    milrtime83

    “sold more briskly than they might have otherwise”

    He can make these kinds of statements all day and they mean nothing because I doubt he has any proof to back them up.

  4. Visitor [Join Now]
    Jamie [visitor]

    He can say whatever he wants as far as it selling more briskly then expected but there are no numbers or facts to back it up. I don’t believe him one bit. The 28 day delay is not going ot make people more likely to spend $15+ to buy something they have not even seen yet.

  5. Member [Join Now]
    kduit

    Sure it looks good, when you are talking about a time when a few “blockbuster” movies are available for sale. You know, the ones people might have already been planning to buy anyway.

    The “delay” will not influence those who already planned to wait to see a movie until it became available for rent into purchasing it.

    Plain and simple. Enough said.

  6. Visitor [Join Now]
    Tee [visitor]

    What would be most logical for the studio’s is a simple 3 tier program. tier #1 Theatrical, tier #2 Pay per view – Video Store – sell thru, tier #3 kisoks, digital download, Netflix/mail. Tier #2 – 50% split w/PPV – Video Store $35 – *sell thru $30, Tier #3 $15 kiosks – Netflix. Time frame – tier 1 90 day’s, tier #2 30-45 days – tier #3. (*possibly move sell thru to tier #3 at $15)

    I know what I’m gonna hear, and that’s all fine and dandy but the fact is that this satisfies the studio’s, consumer and the retailers, high priced to low priced. Also I keep hearing all comparisons to Blockbuster’s brick & motor stores, newsflash – there are a hell of allot more independent video stores out there than there are Blockbusters so please take that into consideration. This tier system would also make it possible for the remaining video stores to acquire the closed Movie gallery & Blockbuster locations and operate at a much more competitive level giving the consumer what the Kisoks and Netflix cannot.
    What the studio’s forget is that all parties involved “need” their big movies, I know, there are a few that say “I’ll wait or I don’t need it”, but that fact of the matter is the masses do. So let’s hear it !!!

  7. Visitor [Join Now]
    firstlawofnature [visitor]

    ‘What would be most logical for the studio’s is a simple 3 tier program. tier #1 Theatrical, tier #2 Pay per view – Video Store – sell thru, tier #3 kisoks, digital download, Netflix/mail. Tier #2 – 50% split w/PPV – Video Store $35 – *sell thru $30, Tier #3 $15 kiosks – Netflix. Time frame – tier 1 90 day’s, tier #2 30-45 days – tier #3. (*possibly move sell thru to tier #3 at $15)’

    Could you explain what this means to someone (me) that doesn’t own a vid store. Thanks.

  8. Visitor [Join Now]
    Tee [visitor]

    Sure Flaw, just a time issue – As a video store or a cable provider if we/they have the ability to rent/show the movies for 30 – 45 days faster than Kisoks & netflix we (video stores) could pay the studio’s a premimum for the movies, say $35 per movie as opposed to $17-$20 & they could demand a high percentage from Cable say 50%(revenue split). After 30-45 days they then go to kisok/netflix, and sell-thru at walmart, target. etc. for let say $12-$14. The video stores and cable could then satisfy those who are willing to pay a little more to see it first, and when the movie gets to the final tier a month later those that can only afford (or prefer) $1 for the rental can then acquire it thru redbox/BBexpress/netflix etc. or at $13 from the mass merchants (walmart), consumers may actually buy it with less hesitation than the current $16 to $21 price.

    • Visitor [Join Now]
      rb [visitor]

      $35 per movie! Geez Tee, someone would be getting ripped off and I’d say it’s the rental customer! Wouldn’t you or a video store owner have to charge at least $4-$5 for a rental to make up for such high initial cost? If this high of a rental price didn’t work out for BB brick and mortar stores , I don’t think it would suddenly work out now for other video stores… The main thing is that the studios just aren’t turning out quality movies right now for customers to be anxious/willing to pay a high rental price…. Look what’s coming up: Furry Vengeance, The Last Song, Go Diego Go,…

      • Visitor [Join Now]
        Tee [visitor]

        RB, no honestly we could be profitable under this scenario, and still keep the renal cost at $2. As far as what’s coming in the next few weeks that’s simply a timing issue. They always put out the crap movies in late August thru September (kids going back to school, late summer vacations, outdoor activities, etc. also happens in May when spring fever hits)

  9. Visitor [Join Now]
    firstlawofnature [visitor]

    Thx tee bag. You’ll have to charge more to rent it out to customers since you are paying $35 right?

    Overall doesn’t seem that consumer friendly. Sell through behind rental seems rather rentailer centric.

    Here’s the problem for studios…how do we get more wallet share from consumers now that they’ve slowed down purchases of DVDs? Answer…Nearly impossible to do right now. No matter how things get arranged consumers are simply not going to give the studios much more money than they are giving them now. This is the new normal.

  10. Visitor [Join Now]
    Tee [visitor]

    Not sure how to take the “tee bag” comment (I’ll give you the benefit of the doubt that we are not entering the name calling arena), but considering the stores would have an exclusive on the movies for 30-45 days we would not need to charge more than we do currently do. Realistically Brand New Releases between $2 to $2.50.
    Its very consumer friendly in the fact that those who need it immediately can walk into the video store and get it, and those that prefer or insist on only paying $1 can get that price within a short period of time. Sell thru needs to be at a price that makes sense to acquire for a personal inventory. If they put it out for sell thru at this reasonable rate all the video stores would simply go to walmart, best buy or target as opposed to distribution thus the stuido could not get the premium price ($35).

    “Rentail” is still viable or Family Video and the 1000’s of other video stores would simply not exist. This plan would net the studio’s 10’s of millions more than they currently making from our sector of the business.

    Here’s the problem for studios…how do we get more wallet share from consumers now that they’ve slowed down purchases of DVDs? Answer…Nearly impossible to do right now. — I disagree, at $20 each yea they are not getting people to line up, but at $12 or $13 I think they could tremendously increase their sales volume.

    No matter how things get arranged consumers are simply not going to give the studios much more money than they are giving them now — No need, my proposal is dramatically reducing the amount the consumer can acquire the movie for. Also whether you agree with prior discussion on weather Redbox can stay at the $1 price point going forward or not, by doing this and keeping their cost to acquire dvd’s at a lower price it should solidify them staying so cheap.

    • Visitor [Join Now]
      firstlawofnature [visitor]

      You wrote flaw. If not intended to poke fun then I apologize for tee bag.

      Sorry but there is no debate about staying at a $1. They can stay there if they want and if even if they don’t most of the kiosk will still be priced at a $1.

      Studios crave the sell through days of the past 12 years. I think they are gone. I do not believe we’ll have a library build of that magnitude again. That keeps wallet share from getting back to what it was before.

      Good luck hearding the studios all along for this. I don’t think it’s realistic to order like you have. Some studios absolutely don’t see eye to eye with you. Paramount for one.

  11. Visitor [Join Now]
    Tee [visitor]

    Honestly I was just shorting the name I assure you I meant nothing by it and I do apologize if it came off that way. I know there a logical ways for all to survive and thrive in this industry until all becomes digital. It’s just very frustrating that the studio’s will not stop and truly apply logic to all the different facets of the industry.
    Hell 12 years ago we paid $69 per movie and still were able to rent them out for $2.50 per day on brand new movies and be profitable. I do believe with the proper tier’s the studio’s squeeze allot more out of their movies without alienating the retailer or the consumer.

    • Visitor [Join Now]
      firstlawofnature [visitor]

      Where’s your store – roughly?

      Think there’s too many ways to view video and too many other distractions (facebook, vid games, social games, youtube etc.) for the studios to ever put humpty dumpty back together again.

      An event when I grew up was battle of the network stars. We are now bombarded with such good content all over the place that it is tough to stand out. Deadly good cable series get lost in the shuffle. Simply too many other activities to pursue out there. The Avatars can push back the tide for a bit but the trend is too big for studios alter at this point.

  12. Visitor [Join Now]
    Tee [visitor]

    About 40 miles So. of Chicago. There is allot to take into consideration with all theses conversations we’ve had, but I will say the Major Studio’s can dictate how we all get the movies and the terms. As with the last couple of years they have changed but once again it seems the thought process was decided on a 10 minute break in the crapper. I can’t speak for all stores but as I was mentioning above the studio’s who do not participate in the delays see allot less support from my store in both their “A titles” & even Their “B” titles. We definitely stock much stronger on the Universal, Warner, & Fox, and pick up more of even their smaller titles. My rates here are $2 for New releases (1 day) $3 for 5 days and older titles $1 for 1 day and $2 for 5 day’s. So far people seem to be good with this.

    • Visitor [Join Now]
      Tee [visitor]

      And your above statement about other distractions is very accurate not to mention illegal downloads (torrent files). People do still go for the Brand New ones like crack though.

  13. Visitor [Join Now]
    ha ha [visitor]

    what you all fail to see is the simple logic that yes their sales increase because they are claiming the 4 times the regular amount of dvd’s that blockbuster express purchased of these movies to compensate their ability to have them in stock 28 days prior to redbox. redbox sales were already there. enron stock anyone?

  14. Member [Join Now]
    starman15317

    This might be true, but it’s pretty unrealistic. The economy isn’t doing that well, so why would people just buy WB movies for $20 (!!!!) when they come out in Redbox 28 days later? Even Blockbuster is a better deal than that! DVDs are too expensive to buy as soon as they come out anyways

  15. Visitor [Join Now]
    kiosklover [visitor]

    I havent bought a movie since Lord of the Rings trilogy. The quality just isn’t there anymore to justify the price. I stopped going to Blockbuster when they started charging $4 for a new release rental for the same reason. Hollywood brought this on themselves…you can’t expect people to buy crap. I’ve been renting at kiosks for 3 years and am VERY happy with the experience. If Redbox doesn’t get it for 28 days, then I go to BB Express and get it sooner. Otherwise I wait for it-and most of the time it isn’t worth the buck it costs to rent it. I have a friend who easily {illegally I know} copies dvd movies and he only copied 6 movies last year…and it only costs him a quarter for the blank dvd! The quality just isnt there anymore and the studios know it. Make a better product and people will buy it.

  16. Visitor [Join Now]
    Justin [visitor]

    It’s a joke to me. If I can wait long enough for a movie to come to DVD before I watch it I can easily wait another month to rent it. I don’t buy movies because I rarely watch them again once I do.

  17. Visitor [Join Now]
    Jeffray [visitor]

    Other then major blockbuster titles I’m not running to a store to purchase. If I’m curious about the movie and Redbox doesn’t have it then I’ll likely pay the ridiculous $4 fee at the movie rental store and not “BUY” the movie. I’m sure the rental stores are the ones loving this! ;)

  18. Visitor [Join Now]
    DeafAtheist [visitor]

    There are a lot of consumers that will indeed buy a movie instead of waiting to rent it. An ex-girlfriend of mine is like that. She buys DVDs that she thinks looks good based on previews instead of renting 1st. But I think the majority of consumers are unlikely to do so unless the titles are films in a series they are already intending to buy anyway… like Harry Potter for instance. So any boost in sales is likely to be small I think compared to the majority. I would bet that most sales of a DVD would take place AFTER the 28 day waiting period for rentals.

  19. Visitor [Join Now]
    Kevin [visitor]

    If anything it makes me put a purchasing ban on WB, and any other studio that does this type of thing. Stop being so greedy. There is a fine line you have to walk between making a profit and treating your costumers fairly. They are crossing that line. Time to stop purchasing their product.

  20. Visitor [Join Now]
    Grane [visitor]

    The quality is at Criterion.