Disney adopts 28-day blackout for rental DVDs
Warner Brothers was the first major studio to prevent rental outfits, like Redbox, Blockbuster and Netflix, from purchasing DVDs at reduced rates for 28 days or longer. Now, long time iTunes partner Disney Studios is following the same policy with John Carter and other current DVD releases.
According to an LA Times write up, Disney won’t be wholesaling John Carter DVDs to its rental partners until 28 days after a film’s general public release on disk.
Redbox, for its part, won’t wait to purchase John Carter DVDs at wholesale, opting instead to put customers ahead of profit.
“We will be sourcing John Carter through alternative means,” a Redbox spokeswoman confirmed.
It must be more profitable for Disney, Warner et al to withhold DVD rentals and, frankly, the math is obvious. If you rent John Carter on iTunes for $3.99 ($4.99 HD), the studio gets 70 percent of that with every rental.
Apparently, the marginal benefit acquired from those willing to pay iTunes’ prices and/or HBO subscription fees is, well, more. And, like Redbox, the rest of us will acquire John Carter by alternate means.
Assuming past is prologue (i.e. music labels, newspapers, etc), the collapse of traditional TV and movie distribution is just around the corner anyway — let them squabble over their pennies…
What’s your take?