News article today: "Studios Go to War Against Video Retailers" (1 Viewer)

[Greg Lovern]

Apologies if this has already been posted:
Studios Go to War Against Video Retailers:
Link Removed
The gist of the article is that studios are considering going to sell-through pricing only.

 

[Patrick Larkin]

This is great news. WB has to be given kudos for thumbing its nose at Blockbuster!
With the end of revenue sharing and special deals, does this possibly mean that the ma and pa video store may return?
I sure do hope so. It'd be nice to see Ma and Pa back and Blockbuster gone.

 

[Glenn Overholt]

I think that WB did that just to throw a curve ball into our upcoming chat.
Yes, I'm all for it too, but we're neglecting the MGM deal with Hollywood - and we do have to consider that some stores are clearing their shelves of VHS tapes.
I'm beginning to wonder what will happen in 6 months or a year. If DVD's are at 30% now, what will happen after December, when more rental contracts expire?
I can envision a sign up in BB. "We are gradually phasing out all of our VHS stock. As of July 1st, we will only carry DVD's"
I know that it is sick and wrong, but someone needs to come out with a DVD player with an RF out. Maybe they are out already. $100. Uses the TV speakers, and that's it. A no-brainer for the BB crowd.
Glenn

 

[Jodee]

The title of that article cracks me up.
Shouldn't it be "Video Retailers Go to War Against Consumers"?
By wanting to turn the successful DVD format into a rental -priced replacement for VHS, that's exactly what they are doing.

 

[JasonK]

As the buyer for an indie retailer myself, I hardly consider this a "war" with WB. I am THRILLED that they want to do away with rental pricing and go strictly on a sell-thru basis. Of course, there is the potential that WB is just going to flip-flop pricing structures. IE, DVD on a rental basis, VHS sell-thru. I doubt that. All video retailers hate the rental system as it is, with different programs for different titles.
As for the Hollywood deal, I think Hollywood should have taken a wait-and-see attitude. I sure don't want to split revenue with MGM and I don't see why Hollywood would either. They may get their discs a lot cheaper, but it just encourages the studios to keep things the way they are.
And MGM just changed their pricing structure, too. A flat fee of around $50 per tape, or about $25 cheaper than they used to be.
It's an interesting time to be an indie. All we can do is sit and watch the big boys duke it out.
Jason

 

[Seth Paxton]

Warner's not pulling a fast one, not when they said things like "Blockbuster will be out of business in a few years" a few months ago. Warner is REALLY against BB and they appear to be focused on breaking that deathgrip that BB has had on them for awhile.

 

[Antonio_M]

Didn't you guys hear on the news about the hundreds of lawsuits from customers about late fees? Blockbuster I heard worked out a deal.
You could tell blockbuster are motherf$$$$$$!!!
I should hope that other great studios do the same and leave their greedy tentacles behind.