If Hollywood Is Upset About $1/Day Movie Rentals, How Do They Feel About 6 Cents Per Hour Rentals?

from the it'll-destroy-Hollywood-even-more! dept

So Hollywood is all concerned that Redbox DVD rentals at $1 per day are going to do serious damage to the Hollywood economy -- except, of course, that the actual numbers say exactly the opposite. Still, if they're all freaked out (and some are in court) over $1/day rentals, you'd have to imagine they're not particularly pleased about rentals that could be even cheaper. Rose M. Welch points us to the news of a new DVD rental kiosk operation, called Big Box DVD, which is moving forward with a business model of charging a whopping 6 cents per hour for a new release (4 cents per hour for an older release). For folks willing to just rent the video, take it home, watch it and return it, that can be quite cheap. Of course, if you keep it for a full 24 hours, it'll be a bit over a dollar. How long until we hear about how much damage this is doing to Hollywood?

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  1. icon
    taoareyou (profile), 11 Dec 2009 @ 11:48am

    Re: Re: Re: costs review

    When you rent a video for .06 an hour, you are paying for the availability of that content, not just the time spent consuming it. Imagine if you rent 300 movies at once, all being charged by the hour. You are paying $18 an hour even though you are not watching all 300 movies at once, because you have the content available to watch.

    When I subscribe to cable and have 300 channels, I have 300 hours of content available to me per hour. I have the ability to jump around and consume bits and pieces of that content however I want. Obviously I can't watch it all, but it is available.

    If I rent a movie by the hour, say .06, I am paying for the availability of the content. Under that premise, taking my $150 a month for TV, 300 channels available 24/7, my cost per hour is fractional and considerably less than .06 cents.

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