To Boost Plummeting Sales Initial DVD Releases Might Become Purchase-Only
by Big Hollywood
“For those who like renting movies, Hollywood may soon have a message: Prepare to wait.
“In an effort to push consumers toward buying more movies, some major film studios are considering a new policy that would block DVDs from being offered for rental until several weeks after going on sale.
“Under the plan, new DVD releases would be available on a purchase-only basis for a few weeks, after which time companies such as Blockbuster Inc. and Netflix Inc. would be allowed to rent the DVDs to their customers. The move comes as the studios are grappling with sharply declining DVD revenue, which has long propped up the movie business.
“Reed Hastings, chief executive of DVD-by-mail company Netflix, revealed that he had discussed delayed-rental proposals with several of his biggest suppliers. People close to the situation at several studios confirmed that such plans were under consideration and probably would take effect next year.
“”The studios are wrestling with declines in DVD sales while the DVD rental market has been modestly growing,” Hastings said on a conference call Thursday with analysts after Netflix reported impressive 24% revenue growth last quarter. “One of the mitigating steps some are considering is introducing a DVD retail sales-only window for a few weeks.”
“DVD sales have been hurt by the recession, which has caused tapped-out consumers to opt for cheaper rentals. But Hollywood studios prefer that consumers buy DVDs because that generates significantly higher profits than rentals.”
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166 Comments
Not that it matters to me since I won't rent or buy the things they pass off as movies these days but this move won't have any real effect on the DVD sales.
The DVD sales are plummeting because Hollywood is putting out garbage and the rabid political activism of many actors and actresses are turning people off. People may be willing to spend a couple bucks to rent a current movie for a night but many of those people aren't about to buy the current offerings, especially at the higher "just released" prices. The majority will just sit back and wait a few weeks to rent it as they aren't in that much of a hurry to really see it.
Anyone know what the carbon footprint is for a DVD? Eh? Save the planet, don't let the DVD's multiply! Don't buy a DVD – rent one to save a polar bear!
Cripes, if Hollywood would quit with the activism and resume the acting, sales and revenue would go up.
Brilliant stratigery. Maybe Detroit can be saved if new models aren't released to rental companies for like a couple of months, so people will buy them instead.
This will so work, because Hollywood is releasing such great stuff that people are going, "Oh, I must see it in the theater…No, I will wait…Until it is released on DVD…I will wait a couple of months….But I can't wait for those few more months until it is available for rental…Must buy now!"
Somehow I'll find the strength to Wait.
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as the man says- Good luck with that…
Habits are hard to change. People will wait until they can get them for the $1 overnite rental. Considering the crap made- with the same 30 actors and recycled plots- there is no need to rush and see that which will be on Cinemax in four months anyway…
You know, maybe this is just me, but if I put a movie on my "to watch/rent" list, and it's not there when I go looking for movies – which is happening more and more rarely these days – then I inevitably forget all about it. If I didn't care enough about it to go see it when it came out – and the last movie I've seen in theaters was the Dark Knight – then chances are, I won't ever see it. I can't even remember the last time I rented or downloaded anything.
well, if they would just put out great movies, perhaps their sales would rise, supply and demand, crappy supply, no demand. it seems the music industry could learn from this too. they charge nearly 20 bucks for a cd with only one good song on it.
Well, THAT explains why I am no longer getting the latest releases on my Netflix. Up until last month, I got them the same day they were released – but as of 3 weeks ago I'm only getting the explanation 'a very long wait' next to the DVD as it just sits there on my screen taunting me.
And the studios think this will make me BUY the DVD? For God's sakes, you jerks – if i was going to buy it, why in the hell would I rent it first?
Anything to keep people uninformed about what tripe their purchasing, I suppose.
Gee, those studios sure are "hurting", maybe the actors all need a salary cap instead of getting those disgustingly capatalistic windfall profits and maybe they should even get a bailout.. (barf)…
I wonder what their brilliant plan will be when this fails…
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Production Costs have gone through the roof and the quality has declined. People want to be entertained but they cannot afford to kep paying through the nose. Hollywood first needs to lean out. Only make one or two expensive movies a year. Make more not less movies but make them cheaply. Recruit and develope new writers and directors and then crank out some flicks. Do weekend before targeted marketing to reduce ad costs. Learn to accept that trying to squeeze every dime out of the different revenue streams can be counter productive. Open up thier own online distribution of content as soon as theatre showings end. People cannot afford to buy as much but will still pay a reasonable rental amount. I have no sympathy for an industry that trashes thier customers.
go ahead holly WIERD..
i can wait a couple extra weeks…
won't hurt me..
you all don't make that much worth our time anyway..
It's the product stupid. Keep making crap-tacular movies and we'll keep our money. People complain about Wall Street Exec's and their pay! I think actors should be paid based on how well the movie does in the box office. Make movies like Gigli…get paid like Gigli. Hell if Obama can do it to Wall Street why not Hollyweird too.
“The studios are wrestling with declines in DVD sales while the DVD rental market has been modestly growing,”
Yeah, that's the ticket. Let's starve the part of the business that is "modestly growing" to hope (and change) that DVD sales will do better by forcing people to wait. That's a Harvard Business model by way of *Trotsky.
Look, fellas, you just got finished flubbing CD sales (remember those?). You put out a lot of garbage at premium prices and people stopped buying. Your response? More of the same. Meanwhile, look at Steve Jobs and Apple. They provided what people wanted, when they wanted, at good prices AND they just kept innovating and making their products better and cheaper.
Today, the iPod is king and CDs are sold in bargain bins.
“I believe that capitalism is expiring and that America’s financial greatness will eventually spell her downfall.” (Leon Trotzky, 1926
The last movie I went to see was Titanic.
Whatever it is, I am pretty sure it won't involve making better movies.
Brilliant Hollywood move – Not. This will just increase DVD pirating and/or people will just wait an extra month or so to rent the DVD they had no intention of buying anyway. Hollywood has never been able to divorce themselves from the notion that they exclusively distribute their movies. The Internet has destroyed that. Movies should come out on DVD one month after they are released in the theater. People don't want to wait around, so if Hollywood plays games with the public, people will just download it for free without guilt. The other segment of society, who doesn't download, isn't going to make a purchase choice of $20.00; they'll just wait to make the $4.00 rental choice. Bottom line: Hollywood will only end up making ill will and screwing themselves.
Didn't they do this already with VHS tapes for years before Blockbuster came on the scene? It worked like crap back then too.
In a land far far away there was a little known rule called the law of supply and demand.
We demand a reversal of the Anti American and Enviromental crap you've been putting out.
We also demand a tenfold increase in movie plots, with actors smart enough not to use the public spot light to ruin what ever movie magic is still left.
Perhaps if you addressed any of these issues you'd have a supply of something that someone might just want to buy. As it is now plan on seeing your revenues continue to drop.
When did they last produce anything that was worth watching more that once? Or EVEN once?
It's a free country (for now, anyway) and they can make anything they want, I suppose, but (for now, anyway) Obama can't make me buy it.
This didn't work when they did it with vhs rentals… what makes them think it will work with dvd rentals?
Actually, the "just Released" price is usually lower — the first week anyway. Then it jumps up to a "not worth buying" price. If I want to buy a movie, I either get it right away, or wait 6 months until it's on the discount table…
So we can't rent DVD's for a few extra weeks. So that means I get to wait a whole 2 months after the theatrical release, then I can rent the DVD.
How self important is that, to say we have to wait a few weeks. Sorry the product isn't even worth going to the theaters for. What would anybody care about waiting a little longer to rent it. After all it isn't like anything will really change(it will only be slightly delayed).
Besides I remember waiting years to get movies I could buy, much less rent. Sorry Hollywood your going to have to do better than that, if you want to make money.
I loved it when DVD's first came out . You got the movie, in widescreen, and usually a whole bunch of neat extra's — behind the scenes footage, deleted scenes, alternate takes, commentary tracks (I've watched Dark City with all the commentary tracks several times, just to learn all the neat stuff behind the scenes). But now, DVD's are the ugly stepchild to the more expensive BlueRay disks. They have to save the goodies for those, so the DVD's are getting the shaft. I have a house full of analog TVs. I have a 400 disk DVD changer I spent a big chunk of change on. I spent another big chunk of change on a projector with a max resolution of 800×600. I'm in no hurry to get a blueray player yet. But I suppose when Greedywood decides DVD's aren't worth making anymore and only release Blueray, I'll start downloading pirated DVD ISO's. Never mind, you didn't hear me say that…
When these actors make films which are not family oriented, and then go around the world on private jets promoting the global warming lie its a no-brainer why nobody is going to see them. Let them save the planet in their villa in France/Spain/Greece etc. etc. I will be enjoying the latest Pixar block buster which is safe for anyone to see. I might pay to see the latest Andrew Breitbart DVD on Acorn corruption though !!!
In my neck of the woods, most movies usually arrive at the "just released" price, go on sale after the first week and then placed into the $10 or less clearance bin a couple weeks later. More popular ones tend to do the same except that they stay at the "just arrived price for an extra week before being put on sale for a few additional weeks before being tossed into the clearance bin.
Hahahaha! Yet another completely wrong move by the kunckle-dragging Neanderthals in Hollywood. Every decision they make is completely bass-ackwards.
People want better movies? Ok, let's spend $200 million on another brain dead Transformers movie.
People don't like paying high prices at the theater? Time to jack up the prices even more and pay actors with three active brain cells $70 million for a single movie.
People don't like being lectured to by morally bankrupt creeps in Hollywood? Time to make another global warming… oops, I'm sorry… climate change movie.
And it doesn't help that the movie-going experience is nothing but infuriating nowadays. Oh yes, please let me pay $9.00 plus $23 for a snack and a drink so I can be in a theater with the sound too quiet, watch 40 minutes of previews, and then sit and listen to the asshats around me talking incessantly, smacking their popcorn like cretins, and yammering on their %$#@ cell phones. Count me in!
Yeah, that one nearly put me off movies for good, too. =)
[...] Random Feed wrote an interesting post today onHere’s a quick excerptThe Los Angeles Times: “For those who like renting movies, Hollywood may soon have a message: Prepare to wait. “In an effort to push consumers toward buying more movies, some major film studios are considering a new policy that would block DVDs from being offered for rental until several weeks after going on sale. “Under the plan, new DVD releases would be available on a purchase-only basis for a few weeks, after which time companies such as Blockbuster Inc. and Netflix Inc. would be all [...]
This is the dumbest possible idea they could come up with. Part of the reason that consumers have turned towards piracy of music and movies (I will not download albums or movies myself) is because of annoying cash-grabs like this. Incredibly expensive CD's/DVD's, double-dipping, releasing substandard DVD's (particularly of old TV shows), and other cheap ploys like this eventually turn people off of buying/renting. Theaters are becoming a mess; clerks are told to keep an eye out for anyone recording the film, but turn a blind-eye to annoying patrons shouting and causing a ruckus. If there's one thing I like about Michael Moore, it's that his own theater has a policy where people who talk are banned for life. Supposedly his theater is consistently one of the most attended in the area. His politics are idiotic, but he does know the movie business.
Ha! I like you. Titanic was terrible.
They did the opposite. You could rent it for a few dollars or pay $100 for a new tape. I did it once when Return of the Jedi was first released (pan-and-scan, yay!), but usually I'd just rent and copy it to another tape. I hope the statute of limitations has run out.
With so much to watch, past and present, people aren't going to care about waiting several more weeks to see something. I have been considering getting rid of cable/satelite and just get Netflix, since everything, movies, series, etc are available on DVD eventually, and many things are available to play as download.
Their New Plan of Attack: Why bother building a suspenseful plotline when for 1/1000th the cost we can simply build suspense by delaying release.
Anticipation is often overrated.
I rent classic movies, not the junk that Hollywood puts out today. If they hold off rentals, they hold off profits from rentals. Idiots!
How stupid is Hollywood? The last time I rented a movie was on Comcast and it was the Changeling. There is practically nothing coming out of Hollywood that is worth spending $20.00 on. Any "star" who comes out politically is a complete turnoff to me, I used to rent anything that Susan Sarandan was in and I stopped doing that a long time ago. There are loads of free movies on my Comcast cable subscription and I usually can find something as good as what you can rent. or buy.
Oy. Here's what the LA Times is omitting:
1. Studios cannot prevent anybody from offering any title for rental. Under the first-sale doctrine, Blockbuster or Redbox or Netflix can buy the titles at Wal-Mart if they want to. But buying the DVDs at the same price as consumers would destroy the current business model of rental companies. Redbox, for example, charges $1 per day per rental. They are suing three studios over attempts to delay sending rental copies of titles to be used in kiosks. Having to buy the titles at retail would severely cut into their profit margins. That's why rental companies have entered rev-share deals with studios to receive DVDs at little or no cost, and then share the profit with the studio. The studios also hate the used-DVD market, and don't want the rental copies eventually being sold as used, either.
2. While Redbox is suing Universal, Warner and Fox for trying to prevent them from getting rental copies on the day of release, Redbox has signed agreements with Sony, Lionsgate and Paramount to get new-release DVDs.
3. Paramount seems to be abandoning the idea of selling DVDs before renting them. Several Paramount titles, such as The Goods, are being offered as rental only, with hints of a sale release within two months. These rental titles are pretty low-key performers: Less than $25 million box office, or foreign or direct to video titles. Maybe the studios are trying to hold back the sale of their bigger titles. The Times omits this distinction.
4. Before DVD, the model for VHS was to release most titles for rental at a high price per unit, like $100. The title would be available to buy about 6 months later for about $25. The DVD model, which released the title everywhere for about $25, changed all that. Taking that route, they could make 4 times as much on a rental version. But that would open the door to lawsuits thanks to their rev-share deals.
5. Studios have been undercutting their potential sales through dubious practices such as DVD special edition rereleases, and declining quality of films. After 12 years of DVD, consumers have caught on. Similar practices are now being seen with Blu-ray. Also, in harsh economic times, studios might spend less on marketing, hoping to rely on press coverage or brand recognition. Paramount has slowly but surely been focusing on well-known franchise properties, such as Transformers, Shrek, Star Trek and G.I. Joe. Many consumers rent titles to see movies they haven't seen before. People buy what they like, which usually means a direct relationship between box office results at the theater (or TV ratings) and DVD purchases. Since known franchises also tend to sell better, the gap will come from the standalone movies, which are getting worse. If people cannot rent these titles, and are not inclined to buy them, they may forget about them, or watch them on cable.
Not buying DVDs?
Here's a tale of Hollywood Halloween Horror:
THE UNBEARABLE LIGHTNESS OF MY WALLET
http://naturalfake.wordpress.com/2009/10/08/the-u...
you left out the anti-American military movies…
Went to see the latest SAW movie, what a disappointment. The story line is about an Evil Health Insurance company that cuts off coverage when you get sick…go figure. Don't waste your time on this one.
I pay $45 a month at Hollywood video and can rent all the movies I want. Most times it is impossible to find anything worth watching. Even the gal running the store says all the movies are crap. Hollywood has no clue why DVD sales are down. Why buy a lame movie you will never watch again…duh!
I can't wait for winter, shoveling snow is more entertaining than watching an airhead hollywood cue card reader.
There's a plan?
Gee, let's see…
I can buy a movie I didn't bother to see in a theater immediately…
Or I can wait to rent the very same movie I didn't bother to see in a theater or purchase on DVD a couple of weeks later…
Or I can add it to my Netflix list and catch it on the rotation, unless I find something better to add in front of it…
Or wait until it goes into the $5 bin at WallyMart…
Or I can do like I have been doing. Keep my money in my pocket, and wait until "Wizard of Oz" was out for one night at the theater…
Hmmmm…decisions…
Ha Ha! I had a bootleg copy of "Jedi" too and it was so bad, I wrote off pirating and figured I'd just pay for a good copy of what I wanted. I know I paid like $30 for a used "Robocop" at a local video store back then and the tape broke in about a week.
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The only way Hollywood is going to make people start buying movies again is when they make DVDs obsolete and release movies only on Blu Ray.
And that day is going to come very soon.
Right, like most of the new movies I rent from Nexflix suck so I'll buy them instead. How stupid do they think we are?
I mostly agree, but let's not forget that Blu-ray Disc prices are cost prohibitive for most people right now. We're in an economic recession and Hollywood wants us to pay $10+ to see a movie in the cinema and/or buy a DVD for $10 to maximize the profits for their content.
Now that DVD sales are declining, Hollywood says: "Go Blu!" but those Blu-ray Discs usually cost twice as much as DVDs and the Blu-ray Disc players are still in the $200 – $300 range.
Pay $250 for a Blu-ray player + $25 per disc in a recession that's looking more like a depression? Especially when anyone can walk into Wal-Mart and buy a DVD player + 10 movies on DVD for the same amount of money?
SOLUTION: Make Blu-ray Disc hardware and software cheaper first. Then we'll see.
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Amen, Dave. I want the illusion of movies back, the innocent kiss of the cowboys horse, the movie without the obligatory sex scene, no remakes of classics, or use of a old title and corrupt the movie til it is another movie loosely based on a notion, and expect me to pa movie price to see just because the hype has it the next Titanic (which made me have fond memories of Jeff Goldblum's Pittsburgh).
The DVDs I will buy without having first seen them is limited and won't increase because of this. I have, though, after renting some DVDs chosen to buy them. As others have pointed out, declining DVD sales are the result of the movies Hollywood has chosen to make. Its summer fare consists of crap for kiddies, and guess what Hollywood – kiddies (including teenagers) don't buy DVDs. Until Hollywood makes more movies for adults, DVD sales will stay low.
I know this might seem a little radical, but why option a book with a real plot (Klavan's for instance), then hire screenwriters instead of propagandists, let them write the entire film (no script doctors allowed), cast the film with actors who are not identified as politicians (if you can find any), leave out the "liberal tell" (as Nolte has described it), don't insult half the audience's politics or deliver a sucker punch ala the anti-Republican line in Streep's Childs film, use villains who aren't Nazis, businessmen, right wing Christians or doctors (might I be so bold as to suggest an Islamist terrorist?) and see if people will pay to see it.
I suppose we are not their target audience anymore.
Agreed, though I think nazi villains are great in an Indiana Jones-type adventure. I guess you were thinking of the ridiculous cop out in The Sum of all Fears.
I am so starved for a simple well-made US vs. THEM escapist action/adventure movie with no liberal pieties hidden in there somewhere. It is what Hollywood is supposed to do best. But it´s not even in their DNA anymore.
A brilliant marketing plan! Defer your revenue for several weeks for no gain whatsoever! Increase customer dissatisfaction and get in exchange zero additional dollars. Yes. Great idea.
Oh these companies are just angry no one wants to buy a fresh copy of Transformers Twilight 2: Electric Boogaloo.
How dare you talk common sense! Like the price of college tuition, the price must continue to go up!
No soup for you! =3
Buy? No.
Steal the rough cut version with incomplete effects shots and Spanish subtitles from a Chinese torrent website? *OH-H-H-H YES*
They did it a little different. My first job in 1992 was at a video store. Rental places had the movies for a few weeks before everyone else.
They paid the $150 bucks or so for them.
A few weeks later the stores could sell them.
The only reason I remember this is because the owner caught WalMart with some videos out early and she nearly lost her mind.
I would rather go to E-Bay and buy dvd's of really good tv shows, Fruebds, Charmed, Grey's Anatomy…some have gone over the edge to liberalism but I can stand a tiny bit of that..I watched a movie last night starring Nicholas Cage and Tia Leone, cute movie until I heard Cage's character say "I saw you on CNBC great interview"…I knew I had been had! Hollywood has made a fool if itself!!!
Oh please, like they produce anything that I couldn't wait for the eventual rental release.
If I wait a year to buy it on discount, it's still a new movie to me. Up Hollywood's behind!
Oh yeah? Speak for yourself, you whippersnapper!
Most of the time, I do rent it first, then buy it. Why would I want to buy a movie, sight unseen? I rent it; then, if I love it, I might buy it.
If it wasn't for Pixar I probably would never go to the theater. I just hope Disney doesn't ruin them.
Add a $5 tax to all internet users.. yes.. that actually has been brought up.. tax everyone because …their stuff is just SOOOoo good you just have to be downloading it if you have a broadband internet connection..
So.. the bailout you jest about.. is "jest" about here.. and you all will pay it whether you want to not..
PAY UP DAMMIT!! YOU KNOW YOU DOWNLOAD MOVIES!!! SPIELBERG WANTS HIS MONEY!!!!
Doesn't matter if you have bittorrent or go to any movie blogs or sites.. MPAA KNOWS you are doing it.. and since MPAA says you are doing it.. that's good enough for Congress..!!
——————————————————————————————————————————————
This will actually drive more people to downloading illegally…
Because Lieberal turds-of-a-feather stink-together
They know better than us … they put Leno on in Primetime… and he's killing NBC.. but they know better than us
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