WB: End rental pricing? (1 Viewer)

[Joseph DeMartino]

Following is an excerpt from an article that ran in Variety:

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[Jeff Ulmer]

I hope everyone has sold their Viacom shares.
This would be a good move if the entire industry followed suit. I can't see VHS sales of catalogue being at all sustainable at rental prices, and offering consumers and rental stores the buying option is going to increase sales, especially when Blockbuster tries to play hardball as it has been doing for months. If rental stores of all sizes are getting their product for the same cost, there will be more of them.
Is Warner once again taking a leading position as they did by bringing DVD to the mainstream?
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[Tim Hoover]

I hate to be pessimistic, but I noticed that WB stated that the VHS version specifically would be priced for sell-through. I presume the DVD will too, but I wonder if WB will be ending rental-pricing on VHS only, and gearing up to enact in on DVD.

 

[Chuck Mayer]

Joseph,
Thanks for the info.
I am completely in WB's corner on this (yes, even in light of Wonka; HT nuts have spoken and I believe WB will [eventually] fix their mistake). BB's effect on the entire industry has been negative. If they win this battle, I believe it is the consumers that will lose.
Take care,
Chuck

 

[Jason Seaver]

I can't see VHS sales of catalogue being at all sustainable at rental prices

Which is probably why it has only been tried once or twice in the last 20 years (I remember a rental-priced Gone With The Wind, but that's it).

 

[Joseph DeMartino]

I presume the DVD will too, but I wonder if WB will be ending rental-pricing on VHS only, and gearing up to enact in on DVD.

Try reading the post again. Lieberfarb is attacking rental pricing as a failure and suggesting its total elimination. Which of his statements makes you even imagine that he would want to eliminate it on VHS and inflict it on DVD?
Regards,
Joe
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[Rob_C]

Sounds good, I'd like to see Blockbuster get knocked down a peg or two.

 

[Todd Hochard]

A free market for all to stand on equal footing (the collector, small video rental shops, and Blockbuster, that is) would be nice. I bet the Mom&Pop shops are cheering Warner on big time.
As a collector, I know I am.
Todd

 

[todd s]

The end of rental pricing will not kill the rental market. Even if the movie cost $9.99 to buy and $3.50 to rent. They will always be people who will rent it. Not everyone wants to own the movies. This will hopefully help the mom & pop stores and people who want to buy movies.

 

[Daniel L]

Joe & everybody else, a word of caution...
Remember the following:
Around the time of the VSDA, Warner began requesting revenue sharing on DVD early this year, but it is not yet manditory.
Lieberfarb has been threatening to eliminate rental pricing on VHS and shorting PPV window if rental stroes did not volunteer.
Warner has already institued a rental policy in Austrailia, where rental stores are forced to buy one higher-priced version for rental, while consumers can still buy the cheaper SE versions. Warner can get away with in Austrailia because there is no first sale laws, which prohibits studios dictating what a company can do with a disc once it has been purchased.
Do you really believe that Warner is going to totally sacrifice the extra revenue that rental pricing earns them on theatrical bombs?
Yeah they may be getting out of the VHS-Rental mode, but don't think for a second they're going to outrigth eliminate the rental pricing scheme, it's too much guaranteed revenue rigth now.
Daniel L
BTW, What's up with the hypocracy of some of the memebers of this forum? Warner is rightfully slammed for releasing product in pan & scan, or for "best of" compelation crap, but wait! They attempting elimiate rental pricing, they're our friend.

 

[Jeff Ulmer]

I don't think it's hypocritical when a company makes the right moves to support them, and when they don't to chastise them.
While it's far too early to know whether this is just a bullying tactic against Blockbuster, the idea is a good one to my ears. Eliminating rental pricing means (assuming some other system doesn't upset the balance) that smaller rental stores will have an equal investment cost to the chains, which should mean MORE opportunity for sales for the suppliers, rather than bulk purchases at a discount from a few big chains.
On the other front, Warner should be blasted for their P&S/OM policy, and if they continue this course, they'll see even more bad press from the HT fans.
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[Neil Joseph]

Chuck voiced my opinions exactly.
orangeman
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