August 20, 2011

Warner Brothers Pulling Movies from Redbox… Blockbuster Exclusive

About a year back Warn­er Broth­ers announced that it would be releas­ing it’s movies for rent at block­buster 28 days before they released them to Red­box, Net­flix and oth­ers.  Today, after dis­cussing this with a cou­ple of Block­buster employ­ees  Warn­er Broth­ers and pos­si­bly one oth­er stu­dio are going to be pulling their movies from Red Box and going with Block­buster exclu­sive­ly.  This is big news as this is the first time a stu­dio, to my knowl­edge, has ever gone exlu­sive­ly with a sin­gle deliv­ery method for it’s movie titles out­side of the Beta­max vs. VHS and HDDVD vs BLU-RAY.
Exclu­siv­i­ty from any giv­en movie pro­duc­tion com­pa­ny could frag­ment the rental mar­ket and shift the bal­ance of pow­er over to what was con­sid­ered to be a dying com­pa­ny.  Block­buster, who was recent­ly pur­chased by dish net­work has gone through a series of reor­ga­ni­za­tions to make the com­pa­ny more prof­itable.  They have closed numer­ous loca­tions nation­wide but the loca­tions that have remained open have exhib­it­ed supris­ing changes.  The most supris­ing change to me is the DVD prices.  They are actu­al­ly com­pet­i­tive against oth­er stores and I’ve found that I can now pur­chase new DVD’s from there for cheap­er then I could get them at Wal-Mart.  I found Avatar, Blu-Ray extend­ed edi­tion for $14.99 new which is nor­mal­ly $40.00.  Their rental prices have also dropped to .99$ a day much like it’s com­pe­ti­tiors. 
This supris­ing move may not save Block­buster but it will keep it around anoth­er few years or until the exclu­siv­i­ty con­tract runs out.

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