August 20, 2011

Warner Brothers Pulling Movies from Redbox… Blockbuster Exclusive

About a year back Warner Brothers announced that it would be releasing it’s movies for rent at blockbuster 28 days before they released them to Redbox, Netflix and others.  Today, after discussing this with a couple of Blockbuster employees  Warner Brothers and possibly one other studio are going to be pulling their movies from Red Box and going with Blockbuster exclusively.  This is big news as this is the first time a studio, to my knowledge, has ever gone exlusively with a single delivery method for it’s movie titles outside of the Betamax vs. VHS and HDDVD vs BLU-RAY.

Exclusivity from any given movie production company could fragment the rental market and shift the balance of power over to what was considered to be a dying company.  Blockbuster, who was recently purchased by dish network has gone through a series of reorganizations to make the company more profitable.  They have closed numerous locations nationwide but the locations that have remained open have exhibited suprising changes.  The most suprising change to me is the DVD prices.  They are actually competitive against other stores and I’ve found that I can now purchase new DVD’s from there for cheaper then I could get them at Wal-Mart.  I found Avatar, Blu-Ray extended edition for $14.99 new which is normally $40.00.  Their rental prices have also dropped to .99$ a day much like it’s competitiors. 

This suprising move may not save Blockbuster but it will keep it around another few years or until the exclusivity contract runs out.

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