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Warner CEO Jeff Bewkes is one of Hollywood’s most outspoken opponents of Redbox’s model and outspoken proponents of delay windows. In commentary during Warner’s earnings call today, Bewkes implied that in increase in cost and/or time to acquire Warner content is coming soon for Redbox and Netflix.
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According to Bewkes:

“The current terms [with Redbox and Netflix] are not commensurate to the value of our films . . . The value should be considerably higher than what we are getting now.
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Netflix would likely suffer less than Redbox if Bewke’s bluster comes to pass, as its catalog is much less dependent on new releases.

Bewkes has made noises about altering the terms of Warner’s agreement with Redbox before. How much pain would higher costs and a longer delay on Warner content cause Redbox?

(via Paid Content)

27 Responses to “Warner CEO Reiterates Dissatisfaction with Redbox Terms”

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

    Bewke’s is really saying…

    Warner’s movies are not doing well at the box office because the audience is more likely to wait for ‘content’ to be available outside of the theaters [at a nominally lower cost], so lets try and get some more money from the ancillary sources.

    Enough said!

  2. Visitor [Join Now]
    haha [visitor]

    when redbox tells warner to go bleep themselves and their profits drop in the crapper quicker than a used piece of toilet paper then warner will be on their knees begging for redbox to accept a contract with them. I have yet to see anything on warner id even be willing to pay a dollar to rent lately

  3. Member [Join Now]

    If you make movies people want to see, people will go see them. It’s that simple. Make mediocre movies that people won’t pay $10 to see and people will wait for them to come Redbox, Netflix, HBO, whatever. It’s that simple. He sounds like he wants a scapegoat for his company’s failures.

  4. Member [Join Now]

    Isn’t this the same guy who said that Netflix is inconsequential and tiny like the “albanian army.” Sound to me like he’s trying to deflect his own problems. If Netflix doesn’t matter then they aren’t hurting you.

  5. Visitor [Join Now]
    Eddie B. [visitor]

    Okay, so people aren’t willing to pay $10 to see our crappy movie in the theater, and they don’t want to spend $20 to buy it, so let’s make them wait longer and pay more to rent it! That will make the “value” of our films higher, and therefore more people will want it.

    See, the “value” is not what the movie is worth on the open market, it’s what we “wish” it to be. If we charge people $20 to see it in the theater, then the “value” goes up! Yay!

  6. Visitor [Join Now]
    tinybrat [visitor]

    You guys need to relax about Warner. The company only had 26 billion in sales in 2010. How do you expect a company to survive on that measley amount?? Sheesh!

    The funny thing is, if they raise their prices to Redbox, or they put in a longer delay, their numbers will plummet, their investors will bail, and they will find out that they need Redbox more than they think.

    The problem is, they are also a cable company and offer their movies via pay per view. So of course they want you to not be able to get the product from redbox/netflix, they want to sell the dvds and promote their pay per view.


  7. Visitor [Join Now]
    Dave [visitor]

    Warner Bros., the home of the cheap cardboard DVD snapcase, should think twice if they think people are going to run out and buy overpriced copies of their crappy movies just because they put an additional delay on Netflix or Redbox availability. It might work for Harry Potter and the like, but for 90% of what they put out, people will wait as long as it takes to watch their movies at home.

    • Visitor [Join Now]
      MovieBuff [visitor]

      I still have yet to see any Harry Potter movie. I bought the first 3 and they still sit on my shelf in shrink wrap. Looks like the 30 day delay won’t bother me.

  8. Visitor [Join Now]
    Danofive0 [visitor]

    I just sit tight! The show sucks. 95% of the movies are trash. And who wants to pay 10.00 bucks are so to see trash… I have NetFlix. (4) at a time..A Home Theater set up. With a 8 Foot Wide 4 1/2 High Widescreen. Who needs the Show.
    NetFlix and Red box are all I need. I can wait, and wait. No big deal…

  9. Visitor [Join Now]
    UBM [visitor]

    Nice to see the general consensus around here is CONSUMER minded, not COPRPORATE minded.

    Beware, Wilkes is one to just push everything in the coming months to “Premium VOD” and stall Netflix and Redbox further just to shoot himself in the foot. He figures if you won’t pay $10 to see it in the theater, then you’ll pay $6.50 to $ $12 watch it on “Pay per view” 30 days after the theater run, before he let’s it go to Netflix or Redbox 60 days after that.

    The sadder thing is that he’s making so much noise, Fox is considering
    following in his footsteps.

    So wait them out, wait them out, wait them out. Don’t give in to their shell games. The economy is on OUR side for a change, make them play
    ball OUR way!!

  10. Visitor [Join Now]
    Video Store Owner [visitor]

    Hate to tell you, but the delay is working. I have former redbox customers pouring into my store because they can’t find the newest releases. Sorry, but the views on this site are only certain segment of society.

    • Visitor [Join Now]
      so true [visitor]

      They’re about to get longer and wider too.

    • Visitor [Join Now]
      Russ [visitor]

      You are probably right.

      Unfortunately, you are probably also their next target for a price increase.

    • Visitor [Join Now]
      tinybrat [visitor]

      What will you do when Warner says they want a 28 day delay for all video stores not just redbox & netflix? You know that time is coming. If they want people to buy instead of rent, then its a matter of time before they have a ‘purchase only’ time frame, before anyone is allowed to rent.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      I’m sure the 28DD is working to some extent. It’s pretty clear $1 pricing is working also. Stores still shrinking and losing share overall.

  11. Visitor [Join Now]
    Michael [visitor]

    Whatever happened to being happy that people are PAYING for your movies instead of downloading them for free or buying bootlegs? Being this aggressive to consumers is what put places like Blockbuster (and, by extension, the studios) in trouble in the first place.

  12. Visitor [Join Now]
    Video Store Owner [visitor]

    Blockbuster is mainly going out of business from crushing DEBT. I have two small independently owned video stores with no other competition in town. Only a couple of redbox. Even if I did get delayed on my movies it will not matter. No big deal for a small guy like me to use the FSD.

    Also, Family Video. Added 110 video stores this year. They have a total of 750 across the nation. Here in the midwest and the south we will be watching physical media for a long time to come.

  13. Member [Join Now]

    Warner has worked for years to drive up the price of movies and this is no different. Boycott warner is the answer, if people refuse to pay for their movies or watch their television channel they will have to fold.

  14. Visitor [Join Now]
    earlyredboxuser [visitor]

    I would pay an extra buck to get a movie from redbox on its release day. And there aren’t enough Blockbuster Express boxes to make it convenient at all.

    There are no longer ANY rental stores in my area, and to not see movies when they come out SUCKS. Many people resorting to torrents around here–this continued fighting between the box retailers and studios will cause BOTH to lose money.

  15. Member [Join Now]

    Bewkes is just another example of the old irrelevant fudy dudy who fears new technology. Streaming and other new technology to deliver content is not the future IT IS NOW. Get with the times WB or be left in a cloud of dust. Consumers want what they want when they want it. Block that instinct and you encourage piracy and torrent view.

  16. Visitor [Join Now]
    so true [visitor]

    Disney changed their tune as well. Ask Flon about their new terms with Redbox.

  17. Visitor [Join Now]
    Observer [visitor]

    I live around several smaller towns in the midwest that the only option to see a movie when it comes out on Tuesday is either buy from Walmart or rent from Redbox. I have purposely checked to see how the windowed movies are selling in Walmart when they are released on DVD. They are selling very well compared to the other movies that are not windowed to Redbox. New movie out this week My Soul To Take was completely out of DVD and BluRay at two different Walmarts I visited in two different towns. Just my observation.