Disney came up with a new policy that delays DVD rentals for 28 days after the DVD goes on sale. Disney believes that by doing this, they can make more money by forcing consumers to buy the DVDs if they really want to watch it. Netflix and Redbox join together in an effort to defy Disney's new policy. They found a loophole around the policy and chose to buy the DVDs from other retailers. The "first sale" legal doctrine does not allow studios to prohibit companies from renting DVDs that they legally purchased. However, by buying the DVDs, both Netflix and Redbox won't be making as much money as they normally would.
I chose this article because I personally rent my DVDs from Redbox. I am also a huge Disney fan and I make every effort to watch new Disney movies. It's important to know about this information if you're like me. Most people like to rent their movies instead of buying them, unless it's really a movie that they would like to own. If someone really wants to watch a movie, they would want to be able to rent it as soon as the DVD goes on sale. Disney's new policy would force Disney movie lovers to wait it out, unless they want to buy a $29.99 DVD.
As a student, this information does not really affect me. However, as a future filmmaker, I could make use of this policy. Disney's policy makes sense, actually. When I make my first movie, I would like to make a lot of money out of it. By exclusively selling the DVDs, I'd be getting the profit that DVD rentals would instead be receiving. On the other hand, as a consumer, I hate this policy. I don't want to have to wait 28 days to watch I movie I want to see. That is way too long of a wait! I've already waited a long time for the DVD to come out and now, I'd have to wait another 28 days. I most especially do not want to have to pay for the movie. I'm most likely going to watch that movie once and never watch it again for a long time.
I would hate for all studios to start adopting this policy. According to the article, 20th Century Fox, Universal Studios, and Warner Bros. also have a policy similar to Disney's. The next thing you know, the film industry might make this policy become a new nationwide law. That's the last thing I want to happen. Also, if Redbox starts to buy their DVDs from other retailers, I'm almost definitely sure that their rental fee is going to increase. After all, they still need to make a profit. The same goes for Netflix. I do not want rental fees to start to become unreasonable. Redbox usually rents out its DVDs for $1 to $1.50. I'd like for it to stay that way.
