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Disney considering 28-day rental window, because 'On Stranger Tides' was that good

Daniel Cooper — Wed, 08 Feb 2012 18:46:00 -0500

That sound you can hear is the studios dashing around as they look for a new scapegoat. Disney's got Redbox and Netflix in its sights as it declares plans to impose a 28-day window before it'll make its titles available for rental. Despite conceding that the studio hadn't seen any impact on overall DVD sales, CEO Bob Iger pointed to a 16 percent drop in quarterly revenue compared to 2010 as the motivation. It's also collecting splinters in its backside as it watches to see how well digital locker service UltraViolet fares with consumers before committing to join the program. Of course, given the legitimacy of First Sale Doctrine, it's possible Redbox will do as its done with Warner titles and just buy 'em at retail -- as long as it can cover its costs as it does so.

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Redbox refuses to push Warner movie delay to 56 days, will rent flicks as they go on sale

Richard Lawler — Wed, 01 Feb 2012 09:44:00 -0500

Two years after bending to Warner's demands and delaying its kiosk rentals 28 days in exchange for lower acquisition costs and a steady supply of Blu-ray discs, Redbox announced the agreement has expired. This comes as a result of Warner's desire to extend the delay between the time movies are available for purchase to the time they can be rented in kiosks or by subscription to 56 days, and instead Redbox will go back to buying the studio's movies at retail -- coincidentally, it has renewed its lease agreement with Walmart for 3,700 retail locations for three more years. While that means more expense and possibly unsure supply for Redbox -- we'll wait and see if retailer interference is an issue again -- the good news for consumers is that for the time being, they'll have the choice of renting as soon as movies go on sale. The first flick affected by the new reality is A Very Harold & Kumar Christmas, so until Warner backs off, or Redbox blinks once its streaming service comes into play, then go forth and enjoy those $1.10 rentals freely.

[Thanks, Stephen]

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Redbox passed 30,000 kiosks in Q4 2010, but still missed financial expectations

Ben Bowers — Tue, 08 Feb 2011 12:48:00 -0500

Redbox may be a red-logoed stepchild compared to industry darling Netflix, but according to its parent company Coinstar's Q4 earnings call, it still managed to pass the 30,000 kiosk milestone, increase market share to 30 percent and grow DVD revenue by 38 percent to $319.6 million. Combined with blowing by one billion rentals back in September and avoiding a lawsuit with Fox, the news would have culminated in champagne and karaoke for Coinstar shareholders... except for one thing: new releases underperformed during the last quarter along with Blu-ray rentals. Coinstar CEO Paul Davis was quick to bolster investor concerns on the call, however, stating company management had taken "definitive steps to correct the issues" and was ready to "leverage the First-sale doctrine" -- which refers to a Supreme Court ruling limiting the control of copyright holders over the re-selling of its property -- should studios get sassy in future distribution negotiations. More updates on the company's streaming plans didn't materialize, though, so you'll have to chuck those dreams of instant rental gratification for a buck back in the deep freeze at least in the near term. Otherwise, hit up the source links below to ogle data tables to your heart's content.

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Psystar's lawyers regroup, try another tactic against Apple

Nilay Patel — Wed, 14 Jan 2009 15:13:00 -0500

So it looks like wannabe cloner Psystar's supposedly hotshot law firm of Carr and Ferrell regrouped for a deep think after pumping out some fairly weak arguments in its case against Apple -- according to a new draft of Psystar's countersuit, the Florida-based computer reseller should be allowed to sell whitebox Mac OS X machines because it legally purchased copies of Leopard at retail. That's the first sale doctrine, if you're into copyright law -- it states that the purchaser of copyrighted materials (like a book) can sell or dispose of them however they want. Here's the thing though: a big part of Apple's case (but not all of it) is based around the fact that consumers license OS X under the terms of the EULA -- and courts are basically up in the air over whether the first sale doctrine should apply to software transactions. It's an interesting tactic with a ton of repercussions beyond Apple if it's successful, but we honestly can't see it working -- in the cases where first sale has been used to overcome a EULA, it's generally been for used software, not companies like Psystar, who are modifying and installing new copyrighted software sold by a first party. We'll see how Apple responds -- things just got interesting again.

Update: World Of Apple notes that this argument has been present from the outset, but it sounds like Psystar's really pushing it now. We'd say so -- we think it's the only plausible one we've heard so far.

[Thanks, iB3nji]

Disclaimer: Nilay's a lawyer and about to fall over from CES, but he's not your lawyer, and this isn't legal advice or analysis.

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