AfterDawn: News

Redbox sues Warner Home Video over new release availability

Redbox has filed an antitrust lawsuit against Warner Home Video over their recent decision to deny kiosk operators access to new releases until four weeks after they go on sale to the public. Redbox already has cases pending against Fox and Universal over the same issue.

In a statement, Redbox President Mitch Lowe said "Redbox will continue to offer our consumers access to all major new releases including Warner Home Video at our more than 15,000 locations nationwide."



Warner is reportedly requiring kiosk operators and DVD by mail services to agree to their profit sharing demands if they want to get movies at the same time as traditional rental outlets like Blockbuster.

This follows yesterday's decision by a federal judge allowing the suit against Universal to go forward, rejecting a motion to dismiss by Universal lawyers.

By contrast, Redbox recently came to an agreement over profit sharing with Sony Pictures Home Entertainment, ensuring that studio's movies will remain available in the biggest chain of rental kiosk's.

Written by: Rich Fiscus @ 19 Aug 2009 15:23

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• 24 comments

• Mez

  Go get those RAT - bastards Red Box. Sue their asses off! I could think of better things like blowing up their HQ but I will have to settle for this.
  
  I guess you can tell I don't like them.

  19.8.2009 15:39 #1

• MReprogle

  Sony even agreed to a profit sharing plan, yet Warner is fighting it? Just cuz they are one of the oldest movie companies doesn't mean they should fight movie renting.
  
  What are they going to do in a couple years when the Batman series and the Harry Potter series come to an end?

  19.8.2009 15:47 #2

• ZippyDSM

  Ya better to have a profit shearing plan with it and a IP than make it exclusivity for one company..... look at the EA and madden monopoly.
  
  Monopolistic tendencies need to be ground out of of the the IP industry...

  19.8.2009 15:59 #3

• slickwill

  This is just another example of how corporations of the monetary system and free market are trying to hold back progress in order to preserve an existing standard, in this case video rental stores, and sellers of dvd's. As more and more people are outsourced by machines, the greater the shift in the workforce, and one day, there's going to be a problem when a large population of people can't find jobs because they have been outsourced to machines.

  19.8.2009 16:53 #4

• ZippyDSM

  Originally posted by slickwill: This is just another example of how corporations of the monetary system and free market are trying to hold back progress in order to preserve an existing standard, in this case video rental stores, and sellers of dvd's. As more and more people are outsourced by machines, the greater the shift in the workforce, and one day, there's going to be a problem when a large population of people can't find jobs because they have been outsourced to machines.Machines is one thing but more troubling is pay for the jobs that are out there and how much insurance at all levels bleeds everyone dry.
  
  Then you have the finance industry is doing it by taking money out of the system for doing nothing more that faking the value of money...

  19.8.2009 16:57 #5

• cart0181

  Quote:Originally posted by ZippyDSM:
  Then you have the finance industry is doing it by taking money out of the system for doing nothing more that faking the value of money...Yeah, what ever happened to an honest day's work for an honest day's pay?
  
  On topic: I don't understand how this is a monopoly, is Blockbuster the only one they give new releases to or something?
  
  I like the ballsy quote by the Redbox president though. Nice one!

  20.8.2009 01:53 #6

• ZippyDSM

  Quote:Quote:Originally posted by ZippyDSM:
  Then you have the finance industry is doing it by taking money out of the system for doing nothing more that faking the value of money...Yeah, what ever happened to an honest day's work for an honest day's pay?
  
  On topic: I don't understand how this is a monopoly, is Blockbuster the only one they give new releases to or something?
  
  I like the ballsy quote by the Redbox president though. Nice one!
  When you can get paid millions and your company into the ground, who needs to work!!
  
  They like their deals with BB and NF so on.

  20.8.2009 01:57 #7

• Mez

  slickwill, don't worry, the US allows more people to emigrate than the rest of the world combined and illegal is 3 times more than that. The fact that we are in a deep recession doesn't stop them from increasing immigration quotas. Obama only cared about persons out of work when he was running for office. Only 2 senators voted against increasing the quotas maybe 2 years ago.

  20.8.2009 07:22 #8

• duke8888

  Blockbuster is leading the charge on this to keep Redbox from getting those releases, screw Blockbusters they have lousy service I just quit as they are only shipping 3 dvd's a week if you are on their 3 at a time plan. If you call them and ask why they just give you total BS so crew Blockbuster they won't be around soon as they hqave to big ballon loan payments coming and they just lost another 47 million. Die Blockbuster and you greedy corp companies. Get em Redbox.

  20.8.2009 13:27 #9

• KillerBug

  Originally posted by duke8888: Blockbuster is leading the charge on this to keep Redbox from getting those releases, screw Blockbusters they have lousy service I just quit as they are only shipping 3 dvd's a week if you are on their 3 at a time plan. If you call them and ask why they just give you total BS so crew Blockbuster they won't be around soon as they hqave to big ballon loan payments coming and they just lost another 47 million. Die Blockbuster and you greedy corp companies. Get em Redbox.Personaly, I'd like to see both RedBox and Blockbuster go under...that would be devine justice for only offering crummy, MPAA editied studio movies that are nothing more than a rehash of the same movie made last year.

  21.8.2009 03:29 #10

• Mez

  I have used both BB and Netflix for 3-4 years each. Unlimited means one a week. Both may do better than that in the beginning but not for long. Still you can get 3 per week plus one in store if you play your cards right. That is less than $1.50 per movie. That is not bad in my book. You can get cheaper with Red Box but the selection is very limited.
  
  BB has less selection than NF but their service is better. You CAN talk to a human. I never found out how to do that with NF. NF often charges an extra month that you pay for and do not get service when you cancle. BB treats you more fairly. You get the service that you pay for after you cancle.

  21.8.2009 07:20 #11

• duke8888

  Originally posted by Mez: I have used both BB and Netflix for 3-4 years each. Unlimited means one a week. Both may do better than that in the beginning but not for long. Still you can get 3 per week plus one in store if you play your cards right. That is less than $1.50 per movie. That is not bad in my book. You can get cheaper with Red Box but the selection is very limited.
  
  BB has less selection than NF but their service is better. You CAN talk to a human. I never found out how to do that with NF. NF often charges an extra month that you pay for and do not get service when you cancle. BB treats you more fairly. You get the service that you pay for after you cancle.Its evident you don't use Netflix because you can talk to a real person you get an ID number and they tell you how long you will be on the phone. Netflix is so much better then Blockbuster since they were sued two years ago. Blokbuster is holding back shipments on all of their members. WHen you call a blockbuster customer support person you wish you could have saved the time and trouble. They are mornons and scripts written for them on what to say and its not even related to the reason you are calling.

  21.8.2009 07:28 #12

• Mez

  I haven't used NF for 3-4 years. I felt so violated from all their dirty tricks I haven't paid for their service since about a year after BB started up. It took years to get my free month. That was my settlement from the class action. When I got my free month I didn't see any kind of speed up in their service. I live near the post office for one of the big NF and BB offices. BB opened offices in the same towns as NF to get old NF employees. I can watch and drop the movie off at their post office same day. NF used to have a an leveling routine that would speed up persons that took forever to get something in the mail. Because I would return sometimes before I was supposed to get the movie I had some kind of crazy factor. I still remember sending 2 movies in the same folder. One was received the next day or so; the next took 2 weeks TO BE RECEIVED.
  
  Maybe they have wised up.

  21.8.2009 09:15 #13

• duke8888

  Originally posted by Mez: I haven't used NF for 3-4 years. I felt so violated from all their dirty tricks I haven't paid for their service since about a year after BB started up. It took years to get my free month. That was my settlement from the class action. When I got my free month I didn't see any kind of speed up in their service. I live near the post office for one of the big NF and BB offices. BB opened offices in the same towns as NF to get old NF employees. I can watch and drop the movie off at their post office same day. NF used to have a an leveling routine that would speed up persons that took forever to get something in the mail. Because I would return sometimes before I was supposed to get the movie I had some kind of crazy factor. I still remember sending 2 movies in the same folder. One was received the next day or so; the next took 2 weeks TO BE RECEIVED.
  
  Maybe they have wised up.Netflix service improved 100% yes I was getting throttled by them until the law suit. But recently they started doing this I had a selection that wasn't available in my area so they sent out the ones that were and then that evening they sent me n email saying they are sending the title out from another area but I still got my plan limit plus one? I was surprised and this has happened on 3 occasions. Block Buster I am on a 3 qt a time plan but they have started to throttled members the past two months I do not have the in store option as they shut all of them down in my area. For the past two months I was lucky to get 2 titles sent so I canceled Blockbuster they closed the account but they still sent a title out after it being closed? I called them and all the customer support people say is a written corporate script BS. I am writing a document telling what is going on at Blockbuster they have two major balloon payments coming due and rumors from wallstreet say they will be closing down. They were to start the kiosk thing to compete with Redbox but are having problems getting it together. Their stock has dropped to almost 50 cents a share so what does that say. Their are lots of blogs with customers and former customers telling the same stories, they are slowing down the process now and they say when a dvd is received their new policy is to ship the next within two business days and its really like 3 or 4 at times. Netflix is quicker and easier to deal with now as they have changed their outlook. I even got the Roku Box which is great and the HD is fantastic, Blockbuster box was a total failure and the service keeps crashing causing more angry customers. Blockbuster is a ship going down and at one time they were very good until they ran into financial problems they lost another 450 million for the quarter so that's why the throttling of products to the customers. I am so glad I don't have the instore option as those people are really getting hosed. When a customer takes a dvd in to the store they don't release the next title up to a whole week. When they had the stores in my area they didn't charge extra like they do now and the turn around was great but now! People are finding out and they are losing members on an average of a 2000 or more per week.

  21.8.2009 09:51 #14

• Mez

  Too bad... about BB. I had not heard, but you offered no surprises. I actually just quit BB so I am one of those 2000. I have seen all the old movies they have and Red Box can supply the new ones. The last few months have been difficult to find something I had not seen. So I wasn't pushing the limits for a lack of what to see next. I wasn't using all in in-stores even when they were 'free' vs now they are 'against your account'. That was the last straw for me. I was surveyed and I told them I would quit if they counter instores against you. I had ment to quit earlier but I kept screwing up or we would lose a disk at the wrong time. You have to pay for a lost disk if you quit and the lost disk was new. It was cheaper just to wait a month to quit.
  
  I have been doing this for 7+ yrs with 2 companies at the same time for more than a year. Plus, before mail order, BB had some bulk deals for unlimited instore access. There is a store 10 minutes away. I could do 10-20 movies in a "movie madness weekend". I had 3 per because of a mistake, I was only paying for 1 at a time. Even though the deal was too good to be true, I had to give it up so we could have a life.
  
  BB is run by morons. They pushed mail order on the store customers. How stupid is that. If morons are willing to pay 4-5 bucks for a movie why show them how to only pay $1? That was REAL stupid!
  
  I had planned to try NF again if I went mail order since they do have old movies that I haven't seen in a while. (Wink) I am sure I am out of their system by now.

  21.8.2009 10:50 #15

• duke8888

  Originally posted by Mez: Too bad... about BB. I had not heard, but you offered no surprises. I actually just quit BB so I am one of those 2000. I have seen all the old movies they have and Red Box can supply the new ones. The last few months have been difficult to find something I had not seen. So I wasn't pushing the limits for a lack of what to see next. I wasn't using all in in-stores even when they were 'free' vs now they are 'against your account'. That was the last straw for me. I was surveyed and I told them I would quit if they counter instores against you. I had ment to quit earlier but I kept screwing up or we would lose a disk at the wrong time. You have to pay for a lost disk if you quit and the lost disk was new. It was cheaper just to wait a month to quit.
  
  
  Yes you are smart for getting out from Blockbuster, they are telling customers that they do not ship dvd's out on Mondays what a bunch of bull that is. I can't wait to see the rest of the stores close down as who wants to speed $4 for a movie when you can get it for a buck like you said. The CEO gave himself a nice raise even though the business is going under so they are punishing the customers. I love Netflix after having a long hate relationship with them in the past but they have proven themselves to me in the past year with the best service you could ever get. One time I had a problem and called the on the phone and they took care of it by releasing another title out of my que. Blockbuster loves to send free in store rental coupons for problem related issues but they seem to send them to people who don't have a store in their area like me. I am not about to drive 50 miles to one of their stores. One of the former managers at one of the closed store saw all of this happening and she was right she called it. I love Netflix and Redbox but the movie companies are now going after Redbox to slow them down they have made over 450 million in profits from their business which is eating Blockbuster alive.
  I have been doing this for 7+ yrs with 2 companies at the same time for more than a year. Plus, before mail order, BB had some bulk deals for unlimited instore access. There is a store 10 minutes away. I could do 10-20 movies in a "movie madness weekend". I had 3 per because of a mistake, I was only paying for 1 at a time. Even though the deal was too good to be true, I had to give it up so we could have a life.
  
  BB is run by morons. They pushed mail order on the store customers. How stupid is that. If morons are willing to pay 4-5 bucks for a movie why show them how to only pay $1? That was REAL stupid!
  
  I had planned to try NF again if I went mail order since they do have old movies that I haven't seen in a while. (Wink) I am sure I am out of their system by now.

  21.8.2009 11:33 #16

• Deadpool

  I thought Red Box was funded/owned by McDonalds? At least that's what the the Kiosk owner told me.I guess we'll see who's the bigger fish.

  22.8.2009 08:23 #17

• duke8888

  Originally posted by Deadpool: I thought Red Box was funded/owned by McDonalds? At least that's what the the Kiosk owner told me.I guess we'll see who's the bigger fish.
  McDonalds did own them but sold to the company CoinSTar they are the machines in stores where you take your loose coins to be counted. McDoanalds made a very nice profit from the sale.

  22.8.2009 11:35 #18

• Mez

  That was a stupid sale for Micky D!
  
  I knew the Red Box concept was a winner from day 1. It does not matter much about the size of the fish. Vending machines will put the brick and morter stores out of business. The stores are not in any shape to buy out Red Box. Warner Home Video may learn to regret making this enemy. Rentals is what keeps the movie companies solvant. For every movie that sells well in the stores there are 10 that are mostly bought by rental companies. Warner Home Video would be screwed if RB stated renting only their most popular movies.

  24.8.2009 08:50 #19

• duke8888

  Originally posted by Mez: That was a stupid sale for Micky D!
  
  I knew the Red Box concept was a winner from day 1. It does not matter much about the size of the fish. Vending machines will put the brick and morter stores out of business. The stores are not in any shape to buy out Red Box. Warner Home Video may learn to regret making this enemy. Rentals is what keeps the movie companies solvant. For every movie that sells well in the stores there are 10 that are mostly bought by rental companies. Warner Home Video would be screwed if RB stated renting only their most popular movies.I agree the studios release so much crap direct to DVD its not worth the time to watch them. It's all about the money and the greedy studios.

  24.8.2009 09:11 #20

• Mez

  They know a crap movie will bring in a certain amount of money from rentals. So if they keep the costs below that they can't lose any money with a low budget movie. Kids will rent garbage as long as their parents pay for it.

  24.8.2009 10:31 #21

• varnull

  I don't rent either.. no way those scumbag mpaa idiots are seeing a brass farthing of my cash..
  

  
  
  Free open source software = made by end users who want an application to work.
  I would rather you hate me for who I am than love me for what I am not.
  “It is poor civic hygiene to install technologies that could someday facilitate a police state.” - Bruce Schneier

  24.8.2009 10:43 #22

• Mez

  varnull, that is the spirit!
  
  I prefer 'my own cooking' if you know what I mean. I have pretty much seen everything I wanted to see up to now. My kids will watch endless garbage if I foot the bill. I actually have stopped due to a lack of cash and lack of interest and may go to your plan in the future.

  24.8.2009 11:01 #23

• pspweazl

  Just another example of corporate greed by the movie making industries! GO REDBOX........

  24.8.2009 13:18 #24