Warner vs Blockbuster

[Dave Bean]

Source: New York Times, 4/16/01, Page C3

This article basically talks about how the studios are trying to cut out paying Blockbuster anything by selling DVD's at or near the same price to consumers as it would to Blockbuster.

"Blockbuster is an endangered species," said Warren Lieberfarb, president of Warner Home Video.

God Damn !!!! First Warren goes up against Dick Sharp, now against Blockbuster. I LOVE this guy !!!!!!!!

Dave Bean

[tomdkat]

Would this mean lower/higher prices for consumers as compared to prices today?

Peace....

[1138]

This is why I'm sooooo lenient to WB. They make some bad decision here and there, but when it's the big picutre, their heart is in the right place.

GO WB!

[Taxi]

Tom, what this is is a stab at the rental pricing scheme that Blockbuster is so fervently pushing.

By making Blockbuster pay the same price as consumers, Warner makes the consumer DVD purchasing model more attractive, as opposed to a DVD rental model.

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Taxi - DVDFile Forum Administrator
Eleven plus two = Twelve plus one

[tomdkat]

Thanks for the clarification. Does Blockbuster pay rental prices now?

Peace.....

[Taxi]

No, they usually get a discounted price, since they are buying so many copies. (Or, they may get thier copies for free, through a rent sharing agreement with the studio: they can make all the copies [of a studio provided master, I believe] that they want of a certain title, and the studio gets a percentage of the rental price.)

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Taxi - DVDFile Forum Administrator
Eleven plus two = Twelve plus one

[Damian]

But Warner selling discs at the same price that Blockbuster does isn't really a good thing. Blockbusters pricing on new releases is absolutly horrid.


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"They're us....we're them!"
-Damian

[manigrasso]

Originally posted by Damian:
But Warner selling discs at the same price that Blockbuster does isn't really a good thing. Blockbusters pricing on new releases is absolutly horrid.

I think you misread, Damian.

Blockbuster gets new release VHS tapes at a deep discounted price, or for free, in exchange for giving the studios a piece of the rental fee ("revenue sharing"). This allows BB to drive many smaller video stores out of business, because they have to buy their stock outright, and at higher prices.

Now, back to your quote. It's not that WB is selling discs at the same price as Blockbuster. What the article is saying is that WB is selling BB their DVDs AT THE SAME PRICE EVERY OTHER RENTAL OUTLET OR RETAIL STORE IS PAYING FOR THEM. I believe that for most new releases, WB charges $16, and Sony (Columbia/Tristar) follows suit). On this issue, it levels the playing field for other video stores, AND it sends a message to BB that their days as a video-rental monopoly are over.

But if you want to talk high prices, try buying anything in a WB store. Talk about expensive. I haven't been in one in a while, but I also remember their video titles selling at full retail as well. So there, your reply may be right: When WB seels video direct to the consumer (in the WB stores), their prices may be as high as BB.



[This message has been edited by manigrasso (edited 04-17-2001).]

[fitprod]

Uh, guys? You did notice that Lieberfarb mentioned that DVD was one of the step to take Blockbuster out, in favor of PPV right?

Just what I want in life, having to pay for each viewing of a movie instead of the option to buy it outright.

I hate Blockbuster because they're inherintly evil; but I don't trust Warner Brothers either. I've listened to their doublespeak for too many years to know they're full of it.

Never fool yourself, no studio is in it for the consumer, just their money.

Fitprod

[lesmeek]

BB and WB is all in it together - there is no price fix. WB sells their DVDs for the same price as BB does. In fact I offen find that BB is cheaper than WB. If you want cheap low prices go to Wal-mart (of course then you take the chance that the Wally World flappers have edited all the good bits out like they do on the CD and VHS tapes they sell.



[This message has been edited by lesmeek (edited 04-20-2001).]

[1138]

Uh, BB doesn't sell new DVD's, do they? This is talking about what price WB charges BB for rental DVD's. WB is saying that BB isn't going to get any special deals and that they'll pay the same price as every other rental store/chain and the same price we pay to outright buy the DVD.

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1138 - DVD File Forum Greeter
I have given a name to my pain, and it is Batman.

[Chumley]

Originally posted by 1138:
Uh, BB doesn't sell new DVD's, do they?

Yes, they do.

[roger thornhill]

Chumley,

You may very well be right, I wouldn't know since I refuse to step foot into a Blockbuster, but are you sure you don't mean that they sell used dvds, not new ones?

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dds #070

[Chumley]

They sell both new and used.

[lesmeek]

Yes they do sell brand new DVD, and VHS tapes. I know - I have bought most of my collection there. Plus - they order the ones they do not normally carry. Talk about good service - and just to mention it - no I'm not an employee of either BB or WB or Wal-mart.

[manigrasso]

That's kind of the confusion I was trying to avoid.

The *WB retail stores* sells DVDs, though only by WB/New Line. They charge full retail, unless there's a sale.

BB sells new & used DVDs from all studios. I've yet to see any discs priced less than retail, except for the occasional sale, and of course the used can be much cheaper...

The artcile was talking about WB (the studio) forcing BB to pay the same price to stock its titles as any other rental or retail outlet. Even if WB (the studio) sells DVDs to WB (the retail store), the store's going to mark it up too, to retail value. The point of the article is that BB is used to bullying their way to getting VHS stock for less, or for free, and that WB (the studio) isn't playing that game with DVDs.

[Damian]

It's all about the cost Blockbuster has to pay from the manufacturer so to speak, not the cost Blockbuster makes its customers pay.

That's where I was getting confused.


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"They're us....we're them!"
-Damian

[Dr. Evil]

Uh, BB doesn't sell new DVD's, do they?

The downtown Kirkland branch carries a limited selection of new discs; I bought my copy of Braveheart there (had a BB GC to use up).

RD

[movienut]

What you need to do is find a buddy who works at Blockbuster...because...they can get you 20% off every dvd purchase (new or used) and 30% during the Christmas season...