Here's a question.
I know Redbox previously had a contract with WB to wait a month before movies were to be rented. In exchange I guess Redbox got a discount on their purchases and a steady stream of stock.
But now, Redbox and WB have parted ways because Redbox wouldn't delay movies by almost 2 months.
January 31, 2012
"The Redbox contract with Warner Brothers to acquire movies directly expires today (January 31, 2012). Redbox will continue to provide our consumers with affordable access to new release movies from all major studios including Warner Brothers at our more than 28,000 locations nationwide. We will work to provide Warner Brothers' movies through alternative means. Redbox maintains direct working relationships with every other major studio," said Gary Cohen, senior vice president of marketing and customer experience at Redbox.
The article on Engadget that this came from says that Redbox will simply buy the movies outright on release day.
Coincidentally, Redbox and Walmart have reached a new agreement. Smart move, locking up a steady stream.
But how can Redbox or any rental company simply buy movies and rent them without an agreement from the production company?
Is there some sort of cut the production companies get off of rentals and if so, why would Redbox have to disclose their rental numbers to anyone if they aren't in an sort of agreement with them.
What's the hidden aspect? Does anyone know? I honestly don't know but it seems like Redbox profiting off mass distribution of a single disc over the course of months isn't all that different than someone throwing a broadcast online and collecting ad revenue from visitors.
Obviously there a legal difference in that broadcast rights belong to the broadcaster but in a practical sense, the two ideas are pretty similar.
Going a step further, could a person buy a movie on release day and stream it online at their site legally?