Re: [Videolib] Fox new policy

From: Jessica Rosner <>
Date: Wed Apr 15 2009 - 15:26:14 PDT

I am confused. How does Fox get any more revenue from Netflix or
Blockbuster than the initial heavily discounted first sale. I know
some places work on share of rental but NOT Netflix .

On 4/15/09, Robert Buckley <> wrote:
> Hello,
> I have been following the postings on this new policy and I wanted to offer
> some background and offer a suggestion on how to deal with it. I have some
> experience dealing with the major studios.
> This policy is most likely a reaction to Redbox and other discount
> retailers. Redbox rents for $1 a day, and the studio sees no revenue other
> than the initial purchase (which is usally about 60% of the opening retail
> price, not $8 like someone said). These discounted rentals are taking a
> huge bite out of their sales. Another studio, Universal, tried to cut off
> Redbox's supply of new movies and got sued in return. Fox is undoubtedly
> trying a different approach in the hope that consumers will seek out the
> version with all the bells and whistles. As we have seen, this will
> probably fail and just piss everyone off. The real issue is whether Fox
> will try to get the rental vendors to pay more for the rental version of the
> video. The studios can't legally get together and do something like this,
> but Fox is probably hoping other studios do the same, then they try to raise
> prices. This new policy has nothing to do with saving money, if anything,
> keeping two different versions with different covers, etc. is going to cost
> them money. It is about preserving their sell-through market.
> Here is a suggestion on what to do. Don't organize a boycott, those things
> are very difficult to organize and seldom effective. But organize a
> petition. I am sure Fox does not want to be known as the studio that made
> life difficult for libraries and universities. Get a petition going and get
> as many institutions to sign it as possible. Explain why the policy is the
> wrong thing to do and ask them to change it. Issue a press release and turn
> up the heat a little. Politely suggest to Fox that they make an exemption
> for non-profit renters that are not making money at their expense (whether
> libraries cost them money is a different story but it is unlikely they want
> to take that issue on).
> Hope that helps.
> Robert Buckley

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Received on Wed Apr 15 15:26:56 2009

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