Movie Industry

by Mike Masnick

Filed Under:
delays, movies, rentals

paramount, redbox

Redbox Realizing That Caving To Hollywood On 28-Day Delay Was A Bad Idea

from the duh dept

We were pretty surprised when Redbox caved in to the Hollywood studios, and agreed to annoy its customers with a ridiculous 28-day delay. We had many commenters say that people wouldn't care and it wasn't much of a big deal. However, the company is now admitting that the 28-day delay resulted in much lower holiday rentals than it had expected. Meanwhile, the only studio that has publicly released information about how its experiments with the 28-day delay went, Paramount, has said that such delays are bad for business, as it doesn't increase sales of DVDs, and that allowing Redbox to rent movies sooner actually helped the studio (and Redbox) make more money. So why do we still have those delays?

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  1. identicon
    Anonymous Coward, 14 Jan 2011 @ 2:11pm

    Re: Collusion?

    Except you see, Paramounts "statement" is 6 or 7 months old. The story is about recent events (in the last few months). I suspect that Paramount has found out that the downside of making Redbox and others wait is nothing compared to the upside of increased PPV style sales.

    It's more misleading information from TD, because unless you go look at the details of the previous story, you wouldn't realize that Paramount's comments have nothing to do with today's news, only an old observation made without the benefit of experience that has happened in the last 6 - 7 months.

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