Jun 12, 2012
Netflix And Redbox's Big Comeback Punch
Two years ago we reported on big production juggernauts like Warner Bros. bending service providers like Netflix and Redbox to their will. These enormous Hollywood conglomerates forced Netflix and Redbox not to rent new movies for 28 days following their DVD/Blu-Ray release, so that the DVDs/Blu-Rays have a chance to "bring in more money" being exclusively sold rather than rented. We dubbed this the 28 Days Later Clause.
Since our initial reporting, many other companies such as Fox, Disney, and Universal have joined WB in their crusade against providing accessible content to passionate consumers at sensible prices. WB has even extended their waiting period from 28 days to 56 days! But according to The Hollywood Reporter, Netflix and Redbox have found a legal loophole to stick it to the man! These behemoths like WB and Fox have beaten and battered Netflix and Redbox a great deal, and have been the main cause cited for Netflix's increasing prices. I imagine Netflix and Redbox being rental competitors, they may have gotten together and had a cliche "I don't like you, and you don't like me! But if we work together, we can take this dog and pony show back!" conversations.
Disney and the like won't provide Netflix/Redbox their movies for 28 days after their release? Fine. They'll go around the big production companies and buy them from another provider! Netflix/Redbox are going to the same folks who provide the DVDs to places like Walmart and buying the DVDs en masse so they can rent them as soon as they're acquired. And just to prove how proud they are of this move, they started doing it with box office flops like The Secret World of Arrietty and John Carter. That is a heck of a message to send. If Netflix/Redbox are willing to go to the lengths of going around the production companies to get their content for some mediocre flops, imagine what they'd be willing to do for some real Hollywood successes.