About three years ago, movie rentals became the easiest thing in the world. Between Netflix (unlimited DVDs as long as you keep shipping them back) for about $10 a month (with free streaming as a bonus) and Redbox ($1 a night for new DVDs), whether you wanted to pay as you go or subscribe, you had good options. We watched more movies than we had before.
But, hollywood wants more money. First, new movies were slow in coming to Redbox. Then Netflix fell for the same. Blockbuster launched a Redbox look a like, with new titles at $3 a night, older titles at $1 a night.
Then it got worse: Netflix dropped a pricing bomb on its faithful customers (yours truly included). Prices went up substantially. They lost more subscribers than they gained for the first time. Several other dumb business decisions contributed to that.
Fast forward a couple of months and Redbox decides that they need to take advantage of Netflix’s miscues to raise their prices to $1.20 a night.
Blockbuster took a different tactic: they’ve instituted a three tier pricing system. New movies will be $3 for the first 28 days they’re available. Then, between 28 days and 90 days, they’ll be $2 a day. Then, after 90 days, they’ll be $1.00 a day.
Honestly? The whole thing makes me want to torrent or usenet or something. The rumblings are that studios are trying to move Netflix and Redbox out to 90 days after a movie’s street date.
The thing that they don’t realize is that there’s a persistent decrease in urgency to see their product. It used to be “When is that movie coming out on tape/dvd?” Now, many of us add it to our queue and when it comes around or we walk past in advertised on a Redbox display, we watch it. Movies that are events will continue to be seen in theaters. The rest, we’re willing to consume when they’re available by our preferred delivery mechanism.
Of course, the reality is that their manipulation of the release schedule will work on enough of the population for it to be “worthwhile” for the studios. If only we could all ban together and say “We’re going to treat the cost effective rental availability date like the availability date, we don’t care what you say.” I guess until then, I’ll simply stay frustrated.