Fox The Latest Studio To Declare War On Redbox
from the not-a-good-idea dept
It was just a few days ago that Mark Cuban was singing the praises of Redbox as the perfect model for movie distribution, claiming that the movie studios loved it, because they pay the studios a minimum guarantee with no returns. Cuban claims that this is a no-risk deal for studios who get pure incremental revenue. That didn't read right to me, because it was just a few months ago that it seemed like Universal Studios was doing everything it possibly could to kill Redbox. And, now, Mark alerts us to the news that 20th Century Fox is also demanding wholesellers not sell to Redbox. In fact, the article notes that Redbox only has a deal with Sony. It purchases all the movies from other studios through wholesale middlemen -- which seems to contradict Cuban's claims. Either way, this is a story of the movie studios letting their own greed interfere with innovation. These movies are being legally purchased. It's difficult to see how the studios have any leg to stand on in preventing Redbox from using their movies in its service. Isn't there a First Sale right somewhere?Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: dvds, redbox, rentals
Companies: fox, redbox, universal studios
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This is disturbing
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Is it Boycott Teim yet?
Boycott Time!
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Gotta wonder
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just created a redbox account
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First Sale right
Specifically, the bottom of page 11 of Netflix's 10-K annual report filed Feb '07. ;)
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Waste of time...
Sure sounds like these guys (Redbox) are just making the market more efficient and since it hurts Fox, etc., they don't like it and are fighting back.
As they say, just follow the money!
At the end of the day, no one wants their well of money to dry up, but it would be nice if someone would look at this as an opportunity instead. The fact that Sony signed up truly amazes me consider how control freakish they've been in the past. This along with their "open" eReader product and maybe just maybe they are becoming a bit enlighten ???
Freedom
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Why must they
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I dunno
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redbox
most of these movies have had no box office
the consumer should be the best educated on movie trash
unless you're into trash redbox is a joke
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Sure there's a first sale right
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Re: Gotta wonder
The high altitudes, low oxygen level, not enough oxygen to the brain, etc.?
Fascinating!
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Murdoch?
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Why do people break
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Re: Sure there's a first sale right
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Re:
The problem is this (where we = "movie studies that don't get it"):
We make money.
Someone else is making money off our product, after we make our money off of them.
We want the money that person is making, too, without doing the work they're doing.
Essentially RedBox is ADDING VALUE to their product, and they want to be paid more for the added value that they didn't add.
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Re: I dunno
"If anything thier innovation is in getting content suppliers to allow content to be sold in a vending mchine and this doesnt appear to be going that well?"
They don't need the content suppliers to allow it. It's called "right of first sale." All they have to do is purchase the DVDs, and they have the right to rent or resell them as they see fit.
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Re: redbox
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Re: Sure there's a first sale right
It's also quite questionable to offer a product on the market, but target certain customers to whom they refuse sales. That's pure antitrust in my book. Hopefully, the courts recognize it as such. To clarify, they're not just refusing to sell direct to Redbox. They're putting other companies on notice that selling to Redbox could have negative consequences. That type of meddling with a third-party contract is generally considered anticompetitive and illegal.
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Re: Re: I dunno
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Re: Re: I dunno
Wait though... there is no right to wholesale prices. So Fox limits the distributors to sell only to approved retailers, and away you go. Redbox can buy all the copies they want at Bestbuy and resell them, good luck on making a profit at that level.
There is also potential that they would get in trouble if they didn't identify the merchandise as "used", as it was bought retail.
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Re: Sure there's a first sale right
The B.S. about only purchasing a license to access the content on the disk is a load of crappe. That would imply that the producer could come and confiscate your disk at any time if they feel like revoking this so-called license.
They can bitch and moan all they want about it being a license and not a product all they want. Just because they claim such, does not make it true.
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my machine
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