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TK's Take

Thomas K. Arnold

TKs Take Blog

Thomas K. Arnold , Publisher & Editorial Director

Thomas K. Arnold is considered one of the leading home entertainment journalists in the country. He is publisher and editorial director of Home Media Magazine, the home entertainment industry’s weekly trade publication. He also is home entertainment editor for The Hollywood Reporter and frequently writes about home entertainment and theatrical for USA Today. He has talked about home entertainment issues on CNN’s “Showbiz Tonight,” Entertainment Tonight, Starz The Hollywood Reporter and the G4 network’s “Attack of the Show,” where he has been a frequent guest. Arnold also is the executive producer of the The Home Entertainment Summit, a key annual gathering of studio executives and other industry leaders, and has given speeches and presentations at a variety of other events, including Home Media Expo and the Entertainment Supply Chain Academy."
 

August 18, 2009
Redbox Ruling Not What Most Expected


Well, the verdict is in, and it's not quite what everyone expected. Given our legal system's history of siding with intellectual property owners, studio executives were hoping a federal judge would quickly dismiss an antitrust lawsuit filed by Redbox against Universal Studios Home Entertainment over the studio's decision to impose a 45-day window on new releases. Similar windows subsequently have been imposed by 20th Century Fox (30 days) and Warner Bros. (28 days), and Redbox has already filed a similiar suit against Fox, with a third action likely against Warner. The Universal suit hasn't seen any action since last March, but today's ruling--and you can read the full story by clicking here--came as something of a surprise, since studio executives have privately said they believe a ruling in Universal's favor was imminent. Not that this is a defeat for Hollywood's attempts to maintain control over its own product, since the actual suit has yet to be heard, but it's certainly a setback.

Here's the press release that just came in from Redbox, which also directs reporters to a new site the kiosk company has launched in an attempt to get the public all riled up over the studios' attempts to crack down on dollar rentals. Studios believe the low price and ready availability of video-rental kiosks in such places as Wal-Mart stores is cannibalizing the sales business, while Redbox chief Mitch Lowe--a former independent retailer and Netflix pioneer--argues that his company is merely giving consumer what they want in these trying economic times.

 
FEDERAL COURT RULES REDBOX CAN PURSUE ANTITRUST SUIT AGAINST
UNIVERSAL STUDIOS HOME ENTERTAINMENT
 
 
For Immediate Release:  August 17, 2009
 
Oakbrook Terrace, Ill. – The United States District Court for the District of Delaware announced today that it has denied Universal Studio Home Entertainment’s motion to dismiss the antitrust lawsuit filed by redbox.
 
“The Federal Court’s decision marks an important step forward in our effort to protect consumers’ right to convenient, affordable access to new release DVDs at redbox locations nationwide,” said Mitch Lowe, president, redbox.  “We appreciate the Court’s thoughtful review of this issue and look forward to pursuing our claim and protecting our consumers’ rights.” 
 
A copy of the decision can be found at www.savelowcostdvds.com, a site dedicated to educating the public on redbox’s effort to protect consumers’ rights against studio action.  

 

By: Thomas K. Arnold

August 13, 2009
Warner Also Puts Redbox on Window Alert


As expected, Warner Home Video has chimed in with the "fight club" of studios that don't want Redbox renting their new releases for a buck the day they come out.

A day after the kiosk company fiiled suit against 20th Century Fox over imposing a 30-day delay, Warner Home Video has informed Redbox of a 28-day window before making titles available to kiosks. But while Fox's window was imposed through third-party distributors, Warner's announcement was coupled with word that it is eliminating whoilesalers and, come October, will sell direct to both kiosks and mail-order subscription rental programs (Netflix and the various Netflix wannabes).

Interesting tactic. Warner's line is that if it deals direct with different classes of vendors, it can impose different "business options," including windows (for kiosks) and revenue-sharing (for subscription rentals). We shall see if that reasoning will keep Warner from the legal line of fire Redbox already has aimed at Fox and, previously, Universal Studios, the first studio to just say "no" to Redbox last year with its 45-day window rule.

Here is the Warner press release, in its entirety:

Burbank, Calif., August 13, 2009 – Warner Home Video (WHV) today informed its wholesalers that beginning in October, WHV will engage solely in direct relationships with kiosk and mail-order subscription vendors.

Through a direct relationship, WHV can ensure that its titles are available through a variety of distribution models to serve all types of consumer preferences. WHV will be in discussions with both kiosk and mail-order subscription vendors, offering business options that will allow all parties to grow their respective businesses. The options offered to kiosk vendors will include a 28-day window, while mail-order subscription customers will also have a day-and-date revenue sharing option. Additionally, WHV has revised their wholesaler terms to prohibit the purchase and sale of WHV previously viewed product.

By: Thomas K. Arnold

August 12, 2009
'Witch' Wins Top-Selling DVD Race


Walt Disney Studios Home Entertainment scored the top slot on the weekly home video sales chart for the week ending August 9 with Return to Witch Mountain, according to Nielsen VideoScan First Alert. Sony Pictures, meanwhile, snagged the top rental spot with Obsessed, according to Home Media Magazine's market research department. Obsessed was the No. 2 seller, while Witch Mountain was the No. 2 renter. Complete story to follow.

By: Thomas K. Arnold

August 12, 2009
Here We Go Again!


I've got some breaking news for you!
 
Redbox Automated Retail has filed suit against 20th Century Fox Home Entertainment over the studio’s decision to withhold its new DVD releases from the kiosk company by 30 days. Last year Universal Studios imposed a 45-delay on sales to Redbox and promptly became the first studio to be sued by the kiosk company (although, in all fairness, Universal sued first, to stop Redbox from renting its titles until given the OK by the studio).
 
Click here for the complete story.
 
This is getting very, very interesting. Studios are fairly unanimous in their sentiments that buck-a-night kiosks rentals are hurting the DVD sellthrough business, particularly since so many of those kiosks are now situated in the lobbies of Wal-Mart stores, the nation's No. 1 retail seller of DVDs. But they are split into two camps over how to deal with this menace: Fight them to the death, or sleep with the enemy.
 
Universal and Fox, clearly, are in the former category, while both Sony Pictures and Lionsgate have cut deals with Redbox to effectively lease new DVD releases to the kiosk company. Under those deals, sales of previously viewed rental product--which studios see as another big factor behind sagging DVD sales--is verboten.
 
I wonder what's going to happen next. My hunch: Warner will join Fox and Universal in their battle to treat Redox like a dollar movie house that shouldn't get first-run movies, while Paramount will cut some sort of deal, following Sony and Lionsgate. The wild card: Disney.

By: Thomas K. Arnold

August 11, 2009
Justin's Done With YouTube, Back Into Watching DVDs


My oldest son, 13-year-old Justin, fits squarely and neatly in the YouTube demographic. And, indeed, he loves watching short clips he finds and then recommends, via text, to his friends (his latest find, I admit, is a real treasure; see for yourself).
 
But recently I've noticed a change in his behavior. He's not as avid a YouTube watcher as he once was, telling me it gets boring, after awhile. He also seems to want a little more depth, more substance, in his entertainment. Not having the attention span to download full-length movies, guess where he's spending more and more of his summer down time, when he's not reading, hiking, going to the beach or playing video games? You guessed it--on the family room sofa, watching movies. Virtually every day he calls me at work, asking me to recommend something. And when he sees a movie that he likes, such as 1999's Stir of Echoes, he promptly recommends it to his friends, via text, of course.
 
No, I'm not too worried about our business.

 

By: Thomas K. Arnold

Insights from the "voice of the home entertainment industry." Thomas K. Arnold gives the inside scoop on entertainment news, DVD, Blu-ray releases, and what's happening at the key studios and retailers.


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