DVDs Photography Shack Guide
DVDs With Movies
By Sylvia Adolvana
Consumers often reminisce about the days when two people
could see a movie for less than $10. They long for $1
rentals of new movies and DVDs they can buy for $5.
The people want what the people want.
They know there are hundreds of names on the cast and
crew list. They know that actors like Mel Gibson and
Tom Cruise don’t come cheap. They know that special
effects, extra features, costumes and filmmaking don’t
come cheap.
Movie Piracy Is Reducing Profits For Movie Studios
Even so, they’re also cognizant of the fact that a
"bad year" is one in which the net profits
are "only" $13 billion. No one is crying for
the victims of movie piracy.
Interestingly enough, instead of caving in to the demands
of consumers, the motion picture companies have decided
to fight against "undermining forces" like
Netflix and Redbox instead, trying to buy themselves
just a little extra time to capitalize... before their
business models crumble and fall completely.
Action To Delay $1 Rentals
Late last year, Universal Pictures ordered its distributors
not to sell its DVDs to Redbox until the new movies
had been on sale for 45 days. Fox and Time Warner also
decided that their top movies should be out for at least
30 days before being available for $1 through the Redbox
kiosks.
This decision is being contested in court by Redbox
and Netflix, who are also being affected by these new
regulations. According to Time Warner CEO Jeff Bewkes,
the $1 rentals should be treated like the "cheap
show" movie theaters with an appropriate window
of time for the entertainment industry to make the big
bucks off consumers.
Undercutting Prices May Affect Business Model
Yet, Mitch Lowe from Redbox argues that they can afford
to pay the studios more because they’ve "significantly
reduced the cost of delivering movies to consumers"
and they garner more repeat business. Motion picture
giants are primarily worried that the undercutting of
prices is what will jeopardize their whole business
model.
Unlike Fox and Universal, Paramount is taking a more
mature stance on the Redbox DVDs kiosk. "There
has been a lot of debate in the industry about the impact
Redbox is having and will have," explains Paramount
Vice Chairman Rob Moore, "and we felt the best
way to make a decision is by getting the information.
Looking At Advantages And Disadvantages
Then we can make an informed decision based on what
we will have learned over the next three months."
They have, so far, agreed to continue dealing with Redbox
until the end of 2009, while studying the impact Redbox
has on their business.
If they see the relationship as advantageous, then
they will make a $575 million five-year deal with the
company. If they feel the $1 rentals are hurting the
probability that people will buy movies from them, they
may impose certain restrictions.
Pay-Per-View Is The Future Of Movies
The general idea is that eventually DVDs will be rented
from television sets much like pay-per-view. Consumers
will not have to worry about scratched discs, mailing
items back to the company, late fees, high rental prices
or other restrictions.
Sony is currently experimenting with something called
"Bravia TV," which would let consumers see
new movies just after they come out in theaters but
before they come out on DVD. They tried a 24-hour screening
of "Hancock" for $9.99 last year, but have
entertained the possibility of raising the price up
to $40.
"The fact that this $40 pay-per-view model has
worked for major sporting events suggests that there
may be an opportunity for a handful of films every year
-- event films and franchises with the same young male
demo as sports would be good bets," says film analyst
Tom Adams.
About the Author:
Sylvia Adolvana has written articles on digital photography
and software including Bridal
Portraits, Wedding
Announcements, Red
Eye in Portraits, Photo
Balloons, Photo
Albums, Photo
Enhancement, Small
Digital Cameras, Create
DVDs, DVD
Burner Software, Family
Web Site, Graphic
Design, Designers,
Website
Design, Advertising
Design.
Keep a lookout as more articles are added from this
popular author on this website in the near future.
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