Hollywood's War With Redbox Expanding To Netflix As Well?
from the shooting-the-foot dept
Hollywood really never learns, does it? Following 20th Century Fox’s decision to try to stop Redbox from getting movies to rent via its kiosks (to which Redbox has responded by suing Fox), Warner Bros. has joined in as well, but isn’t just trying to stop Redbox, but Netflix, too. It wants to force both companies not to rent DVDs until a month after the DVDs are actually released… unless the companies agree to share revenue from the rentals.
There’s basically no legal basis for this move, which would only serve to piss off consumers (yet again). These companies are free to buy the DVDs and rent them out, but the studios want a cut of every rental. It’s sort of like video game makes demanding a cut of every used game sale, or an artist demanding a cut every time a piece of his artwork is sold. It’s entitlement society all over again. Nothing should happen without the original company getting paid. What they don’t realize is how this limits them. Netflix and Redbox become less interested in promoting Warner Bros.’ movies, because they’re now a lot more expensive to those companies. Instead, Hollywood is handing incentives over to these companies to promote other films that don’t demand their tithe.