Home Theater Forum  ›  Forums  ›  HTF Marketplace  ›  Retail and Wholesale Vendors Feedback  ›  Redbox Lawsuit Threatens DVD/Blu Ray Future Viability
This thread is locked! Posting is not allowed!

Redbox Lawsuit Threatens DVD/Blu Ray Future Viability

#31
Rating: 0
Michael, all I was saying is that Redbox is clearly in the wrong and it will be proven in court that Redbox has no basis for the lawsuit. The only remaining argument they are allowed to present is the antitrust argument and even that argument is flawed.

Redbox, simply put, isn't being denied access to DVD's. If Universal or any other studio doesn't want it's distributors selling their DVD's to Redbox, then they are completely within that right. Redbox is simply refusing to play ball with these studios and refusing to sign agreements with these studios to share a percentage of their profits from these DVD rentals. It's no different than the agreement with many DVD rental stores like Blockbuster and Family Video.

The studios expressed the fact that they wanted Redbox to agree to a revenue sharing agreement and that they would allow their distributors to sell their DVD's to Redbox. Redbox refused to deal with the studios and this is going to have a backlash against Redbox.

If Redbox wins, these studios could just end up changing the way they distribute their DVD's by having each retailer or vendor order directly from Universal, which would give Universal the ability to refuse to do business at all with Redbox.

What I'll also say is that these studios aren't violating antitrust laws. They are simply trying to get fair compensation for the product that they create and sell. Redbox just doesn't want to fairly compensate these studios for the rental of these DVD's. To make matters worse, these studios have a right to file a lawsuit against Redbox itself since they are also in violation of said laws for attempting to drive down the prices of retail DVD's and rental DVD's by undercutting prices.
Export to Wiki
#32
Rating: 0
Good grief.  You should get a job with OPEC.
My Home Theater
Our DVD Collection
Dolby and DTS Plaques (downloads)
Export to Wiki
#33
Rating: 0
Quote:
To make matters worse, these studios have a right to file a lawsuit against Redbox itself since they are also in violation of said laws for attempting to drive down the prices of retail DVD's and rental DVD's by undercutting prices.

Redbox is not in violation of any laws, except for ones that only exist in your own warped mind.  If this were in any way true whatsoever, a lawsuit would have already been filed.  Movie studios aren't known for being shy about filing lawsuits.

Redbox is not clearly in the wrong about the anti-trust either.  If their claim clearly had no merit, the judge would have dismissed it.  Despite your declarations, this is an issue that will be decided in the courts, not by you.

What do you have against Redbox?  Why are you so much in the studios corner on this? 

It's not even clear to me that the studios are acting in their own self-interest.  They *think* that delaying Redbox accessibility will lead to a rebound in sales, from people not wanting to wait an extra 1-1.5 months, but that's only a guess that may not turn out to actually be true.

Ultimately, the consumer determines how much they are willing to buy/rent movies for.  These legal maneuvers might give one or the other side a slightly smaller/bigger slice of the pie, but really the consumers, us, determine the size of the pie.

Redbox isn't blanket refusing to deal with all studios.  They made a deal with Sony & Lionsgate.  They just couldn't come to mutually agreeable terms with the others.  How do you know that it is not the studios being unreasonable/unrealistic in their demands, rather than Redbox?

Stop spouting complete nonsense backed by no facts other than opinions made up in your own head.

Quote:
They are simply trying to get fair compensation for the product that they create and sell
They are getting compensated, by DVD sales to the distributors who are feeding Redbox.  If they feel the compensation is unfair, they are free to raise the price!
Export to Wiki
#34
Rating: 0
I have a couple of questions, everyone do your best to answer them;

1: It sounds to me like these certain studios are preventing distribution to Redbox in order to try and force them into an unfavorable profit sharing agreement. Is that legal?

2: Couldn't Redbox just set up some kind of shell company to buy from distributors with?


"Because he's the hero that Gotham deserves, but not the one it needs right now... and so we'll hunt him... because he can take it... because he's not a hero... he's a silent guardian, a watchful protector... a DARK KNIGHT."

Export to Wiki
#35
Rating: 0
Technically speaking, Universal has the right not to do business with any retailer/business entity it doesn't want to. That is the whole beauty of business in the United States. Businesses routinely ban customers from their properties. There's nothing that can be done to prevent this.

Universal simply told its distributors, who distribute its merchandise, not to sell its product to Redbox. There's nothing in violation of anti-trust law. Redbox is simply whining because they are forced to buy their DVD's at full retail. Redbox doesn't want to pay full retail and are demanding from the courts that they be allowed to buy the DVD's at wholesale.

Sounds to me like it's not an antitrust issue but rather a two year stomping their feet because they're not getting their way.

Universal is not preventing Redbox from buying its DVD's. It's simply refusing to allow their distributors to sell them the DVD's at wholesale. Redbox is allowed to buy the DVD's at full retail at video stores.

Also, these studios have expressed that they want Redbox to sign a revenue sharing agreement. It sounds fishy that Redbox signed agreements with other studios such as Sony but refuse to sign agreements with Universal, Warner Brothers or Fox. Not only that, but the studios want Redbox to increase their rental fees to at least $2-3. Redbox flatly refused to deal with the studios and have adamantly refused any cooperation with said studios.

Just sounds to me that Redbox has decided not to share any of its revenue for the other studio DVD's with these studios. I just think that if Redbox ends up winning their suit against the studios that you might be shift with these studios distributing their own DVD's and new policy agreements with retailers who are acquiring DVD's from them for either sale or rental.
Export to Wiki
#36
Rating: 0
It's also nice to see that HTF is allowing members to personally insult other members.
Quote:
Originally Posted by Stephen Tu View Post


Redbox is not in violation of any laws, except for ones that only exist in your own warped mind.  If this were in any way true whatsoever, a lawsuit would have already been filed.  Movie studios aren't known for being shy about filing lawsuits.
 
Export to Wiki
#37
Rating: 0
Quote:
Originally Posted by Mark Talmadge View Post

It's also nice to see that HTF is allowing members to personally insult other members.
 


That's rich, coming from someone who has repeatedly insulted other members (and been warned for it). As has frequently been the case in the past, you have a hard time distinguishing between vigorous argument and personal attack. But to eliminate the problem, and to conclude this no-longer-fruitful discussion, I'm going to close the thread. The topic is closed.

Zoloft and Paxil and Buspar and Xanex, Depacon, Chronaphin, Ambien, Prozac,
Ativan calms me when I see the bills.
These are a few of my favorite pills.
(Next to Normal)              HTF Rules & Regs     My 2009 Film List
Win cool stuff: www.hometheaterforum.com/contest for details!
Export to Wiki