Shocking. Hollywood studio executives are upset that you’re not giving them all your money.
Hollywood has a problem. It’s red, boxy, lets you rent DVDs for $1 a night, and is severely threatening movie studios from making money. The threat is Redbox self-serve DVD rental kiosks outside McDonalds and in grocery stores.
The Associated Press reports earlier this week 20th Century Fox ordered its wholesalers not to sell DVD discs to Redbox until 30 days after a movie’s initial release to help boost retail sales.
This came a day after Redbox’s parent company, Coinstar, reported a 110 percent revenue increase in the second quarter of this year while DVD sales fell 13.5 percent in the first half of the year.
Fox isn’t the first studio to play hardball with the kiosk company. Last year, Universal Pictures and Redbox got in a scuffle after the studio tried to push a 45-delay waiting period. When Redbox objected, Universal cut off its supply.
The convenience of the Redbox is great, especially for impromptu rentals. The selection isn’t great, but at that price point selection is a mere after-thought. Usually, it’s lets rent the worst movie possible. Still, if Hollywood can’t make money then they have a huge problem and it isn’t Redbox.