For months, we’ve heard stories, rumors and speculation about studios working to revive the DVD sales industry. One move that’s been widely discussed is creating multiple version of studio offerings on DVD and Blu Ray–and no, we don’t just mean double and triple dipping on special editions or creating single and multiple disc versions.
The latest tactic appears to be creating rental only versions of the releases that would strip away all features but the movie itself. The studios are looking to drive consumers to purchase DVDs and Blu Rays if they want more than just seeing the movie itself and this could cut down on the ability of some rental chains re-selling the releases after the initial few weeks of heavy rental.
According to a report on Audioholics, the move has already begun with the rental version of “Terminator: Salvation.” The report indicates that a rental copy of the just released movie contained only the theatrical version of the movie and some previews that couldn’t be skipped. The report went on to say that the version was the theatrical version, not the unrated director’s cut that is available to consumers who buy the disc. And that the disc itself didn’t even have a menu screen or any other special features.
In short, a bare bones copy of the film that was designed to mimic the theatrical experience.
According to a letter sent by Fox senior VP of sales Don Jeffries: “We have developed product variations to feed different consumer consumption models and behaviors,” the statement said. “For rental customers, we’re delivering a theatrical experience in the home while promoting upcoming releases; for retail [or sell-through] customers, we’re offering a premium product that expands the entertainment experience of that particular property to further enhance ownership.”
Audioholics delved a bit deeper and found the following:
The Movie Studios are claiming that they are not making enough profit from movies’ post-theater releases to DVD and Blue-ray. Furthermore, they claim they make no money on movie rentals. What’s also typical is that most people stalk a rental store until they offer the movies they want at a special discount since they are previously viewed items used for rentals when the movie was hot. Then they go in and buy them at 1/2 or sometimes 1/4 the price, of which the movie studios see no profit.
The discount DVD rental business worries Hollywood movie studios because of fears that it is undercutting DVD sales, which dropped 13% in the fourth quarter last year and is projected to drop even more in the first quarter of next year, according to analysts.
These executives never learn. All they are going to do is increase piracy.
That's an interesting approach, "movie only" DVD rentals. The thing is when I rent a DVD I only ever watch the movie. I've found from experience that most special features and extras are anything but that. So go for it guys, it won't worry me.
And a little secret, if you want people to BUY more DVDs, try dropping the price to something average people can afford to pay. AUD$35 for a movie made 50 years ago? Give me a break.
Exactly, they will increase piracy and at the same time further cause the closing of more video rental stores. Now with Blu-Ray beginning to slowly supplant regular DVD's, many people have stopped going to Blockbuster or Netflix since most of their rentals are not B-R. In my community alone, we had 3 overnight closings of Blockbuster. No warning, nothing, just empty stores the next day.