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  • 2 Post By chipvideo
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Disney Implements 28-Day Embargo on All Physical Rentals

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Old 06-07-2012, 04:16 PM   #1
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Default Disney Implements 28-Day Embargo on All Physical Rentals

Another studio joins the embargo list. So all the major studios are now making renters wait 28 days?

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Walt Disney Studios Home Entertainment has begun delaying select new disc releases 28-days to kiosks, video stores and Netflix — a policy the studio started with the May 22 release of The Secret World of Arrietty, a studio representative confirmed.

Disney had been the lone major studio not to embargo titles on street date. It has contemplated delaying new releases this year, CEO Bob Iger told analysts in a recent fiscal call.

Indeed, the studio held back the June 5 release of sci-fi movie John Carter to rental channels. According to OnDVDreleases.com, Redbox won’t have Carter until June 12 — an availability date the kiosk vendor will apparently meet securing disc copies through retail channels.

"We will be sourcing John Carter through alternative means," the kiosk vendor said in a statement, adding it has always worked with Disney on a per-title basis without a contract.

Blockbuster Express — which Redbox acquired from NCR Corp. earlier this year — doesn’t have Carter until July 3 — four weeks after street date. Carter is listed for rent on DVD and Blu-ray Disc (not streaming) at Netflix without an availability date.

John Kraft, analyst with D.A. Davidson in Lake Oswego, Ore., estimates Disney represents 10% or less of Redbox’s rental share. The analyst said that in early 2011 Disney, instead of windowing new releases, raised the pricing for day-and-date new releases, effectively setting pricing tiers, rather than window availability. Presumably this reduced pricing remains intact for delayed titles.

“Importantly, we believe Redbox and Disney are on friendly terms,” Kraft wrote in a note.

Carter, which Disney attributed to its studio reporting a first-quarter fiscal loss and cost studio boss Rich Ross his job, generated a disappointing $72.7 million at the domestic box office. The movie, which did $209 million at the international box office, reportedly had a production budget of $250 million.

Eric Wold, analyst with B. Riley & Co. in Los Angeles, said that just because John Carter faired poorly at the box office does not mean it won’t be a great rental. In light of the media maelstrom surrounding Carter’s weak domestic box office, Wold said it is unknown if consumers skipped the movie because they didn’t want to see it at all or just didn’t want to pay theater ticket prices after all the negative press.

The analyst also said Disney embargoing rentals makes sense since it doesn’t have any formal agreements with Redbox.

“I believe that most [Coinstar] investors have been under the impression that Disney was moving toward a 28-day release window, so this seems to follow expectations,” Wold said in an email.
http://www.homemediamagazine.com/dis...-rentals-27470
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Old 06-07-2012, 04:33 PM   #2
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In other news BitComet downloads surge!
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Old 06-07-2012, 05:46 PM   #3
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Originally Posted by bruceames View Post
Indeed, the studio held back the June 5 release of sci-fi movie John Carter to rental channels. According to OnDVDreleases.com, Redbox won’t have Carter until June 12 — an availability date the kiosk vendor will apparently meet securing disc copies through retail channels.
Netflix joins Redbox to defy Disney's new DVD policy

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Netflix is joining Redbox in defying Walt Disney Studios' attempt to stop DVD rentals for four weeks after the discs go on sale.
...
Blockbuster, the only remaining national rental store chain, is also defying Disney. "John Carter" is already available to rent on its shelves.
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Old 06-07-2012, 07:49 PM   #4
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Disney CEO Iger has no beef with Redbox

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September 21, 2010

Walt Disney Co. Chief Executive Bob Iger isn't afraid of Redbox.

While several studios have cut deals with the kiosk operator that keep their DVDs from being rented at Redbox's rate of $1 per night for the first 28 days after a movie goes on sale, Disney plans to continue making its titles available for rental and sale on the same date.

"We have not seen cannibalization from the very low-priced rental model," Iger said during an interview at the Goldman Sachs Communacopia Conference in New York City. While he acknowledged that DVD sales have taken a hit over the past few years, he doesn't think any loss of revenue from declining disc sales would be made up by keeping the studio's product out of Redbox's kiosks for a month.
http://latimesblogs.latimes.com/ente...h-red-box.html
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Old 06-07-2012, 07:54 PM   #5
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Well it looks like they've changed their tune since September 2010.

Last edited by bruceames; 06-07-2012 at 09:54 PM..
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Old 06-07-2012, 08:15 PM   #6
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In other words. Studios had expectations for blu-ray and now they are going to make renters wait because they haven't met their expectations.
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Old 06-07-2012, 08:54 PM   #7
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Originally Posted by chipvideo View Post
In other words. Studios had expectations for blu-ray and now they are going to make renters wait because they haven't met their expectations.
Desperate times call for desperate measures.

I think the studios are realizing the increasingly little revenue earned from OD rental is beginning to not offset the damage it's doing to the sell through model. OD is going to revert more to sell through than ever before as the rental market shifts to digital.
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Last edited by bruceames; 06-07-2012 at 09:03 PM..
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Old 06-08-2012, 08:15 AM   #8
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Originally Posted by chipvideo View Post
In other words. Studios had expectations for blu-ray and now they are going to make renters wait because they haven't met their expectations.
Wait. I thought there were no expectations? Haha! Of course there were. Iger seems to get it. Not going to make much of a difference in sales.
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Old 06-08-2012, 08:58 AM   #9
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Am I just an odd duck or weirdo?
I love movies and I enjoy owning them and for a number of reasons prefer to watch them in my home theater as opposed to the cinema. I used to use netflix a ton but since their disc by mail offerings pretty much suck at this point I use redbox. I probably get ~5 movies on avg from redbox each week and IF THEY ARE ANY GOOD I WILL BUY THEM but I am tired of squandering $20-$25 on crap so $1 is a good way to decide what is worth a purchase. I care about both PQ and AQ and to me those pretty much suck on dd. I feel like this is the mp3 debacle all over again - inferior products and less than attractive prices for the sake of convenience: quality be damned. I am not sure who I am more pissed at - consumers or studios. Also more and more ISP are limiting their consumers bandwidth making you essentially pay twice and we still have no regulations or guarantees of net neutrality in place.
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Old 06-08-2012, 09:11 AM   #10
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Quote:
Originally Posted by jkkyler View Post
Am I just an odd duck or weirdo?
I love movies and I enjoy owning them and for a number of reasons prefer to watch them in my home theater as opposed to the cinema. I used to use netflix a ton but since their disc by mail offerings pretty much suck at this point I use redbox. I probably get ~5 movies on avg from redbox each week and IF THEY ARE ANY GOOD I WILL BUY THEM but I am tired of squandering $20-$25 on crap so $1 is a good way to decide what is worth a purchase. I care about both PQ and AQ and to me those pretty much suck on dd. I feel like this is the mp3 debacle all over again - inferior products and less than attractive prices for the sake of convenience: quality be damned. I am not sure who I am more pissed at - consumers or studios. Also more and more ISP are limiting their consumers bandwidth making you essentially pay twice and we still have no regulations or guarantees of net neutrality in place.
Amen.
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Old 06-08-2012, 09:42 AM   #11
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Originally Posted by jkkyler View Post
Am I just an odd duck or weirdo?
I love movies and I enjoy owning them and for a number of reasons prefer to watch them in my home theater as opposed to the cinema. I used to use netflix a ton but since their disc by mail offerings pretty much suck at this point I use redbox. I probably get ~5 movies on avg from redbox each week and IF THEY ARE ANY GOOD I WILL BUY THEM but I am tired of squandering $20-$25 on crap so $1 is a good way to decide what is worth a purchase. I care about both PQ and AQ and to me those pretty much suck on dd. I feel like this is the mp3 debacle all over again - inferior products and less than attractive prices for the sake of convenience: quality be damned. I am not sure who I am more pissed at - consumers or studios. Also more and more ISP are limiting their consumers bandwidth making you essentially pay twice and we still have no regulations or guarantees of net neutrality in place.
I use Redbox as my trial experience before I buy new Blu-ray releases and Netflix and Amazon streaming to do the same for catalog Blu-ray titles I have not seen before.

If I like a movie and think I will watch it again in the future and it will look great on my home theater I will buy it when the price gets right, but I'm in no hurry to buy it on release date or full MSRP.
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Old 06-10-2012, 09:33 PM   #12
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Originally Posted by chipvideo View Post
In other words. Studios had expectations for blu-ray and now they are going to make renters wait because they haven't met their expectations.
Its only fair since DVD didnt have to deal with the popularity of redbox and netflix.
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Old 06-11-2012, 08:26 AM   #13
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Its only fair since DVD didnt have to deal with the popularity of redbox and netflix.
Actually - no. Netflix entered the markety at the height of DVD and rental services be they redbox, Blockbuster or Joe's video down on the corner have been around since VHS days.
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Old 06-11-2012, 07:50 PM   #14
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Actually - no. Netflix entered the markety at the height of DVD and rental services be they redbox, Blockbuster or Joe's video down on the corner have been around since VHS days.
DVD is also suffering from redbox and netflixs rise. Studios are trying to equalize the market to when blockbuster was the main rental method. Cant blame them for trying.
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