Warner's plan to kill the video rental store

As featured in Home Media Magazine:

Retail and distribution sources say Warner Home Video is set to impose for the first time a 28-day delay on new releases to video stores beginning Nov. 1.

The embargo would include new releases Crazy, Stupid, Love Nov. 1 and Harry Potter and the Deathly Hallows — Part 2 Nov. 11, among others.

It remains unclear whether Warner, beginning in January, would impose a planned 60-day embargo on new release titles to all rental channels or just kiosks such as Redbox and Blockbuster Express.

“Some of the Warner reps have called our key customers to let them know about this upcoming change,” said a distributor who wished to remain anonymous. “They have all been consistent with their message.”

The move underscores parent Time Warner and Warner Home Video’s mandate to protect higher-margin sellthrough of DVDs and Blu-ray Disc and transactional video-on-demand from lower-margin rental options.

A Warner representative did not comment by press time.

Now, my thoughts:

The 28-day window was initially set up to benefit brick and mortar stores, more specifically, Blockbuster, the biggest rental chain. And, although a breath of life was blown back into Big Blue, financial woes continued, so more stores closed, causing the public to react by seeking their entertainment elsewhere, and enabling Family Video to move in and gobble up market share. But, if Warner imposes the 28-day window to retail stores as well, then that's another nail in the coffin for the rental industry.

Warner has always been very vocal about rental cannibalizing sell-through, but they should be able to work cohesively, since not everyone wants to spend $15 or more on a movie if they're not sure if it's a keeper. Now, I love the option to rent, and I'm all for cheap rentals, but I tend to scoff at kiosks and their limited selections and title availability. But, I know there's little loyalty to any one rentailer, because it's about the best value and what's most convenient for the customer. Sure, I rent from brick and mortar stores, but also from Redbox and Netflix. Which one I choose when, boils down to what I want to see, when I want to see it, how much money I have, and which one is closer...or open.

My heart aches for the demise of the rental store, as it was a safe haven as a kid and young adult, and until a few months ago, I spent 10 years working in it. I hate that big studios continue to run the industry and run over everyone in their path, but I truly believe that once the smoke clears, Mom and Pop stores shall rise again. Sure, it's all about convenience and our "I want it now" mentality, but as Hollywood continues to disappoint, and indies and international markets bring us the newest ideas and angles, those who choose to weather the storm will triumph.

This isn't the first time I've expressed my distaste for Warner's ways (remember Is Warner Brothers' the Devil?), and I'm sure it won't be the last, since for them, it's never what's in the customer's best interest, but rather who's pockets at the top aren't fat enough. Since I wrote that post, my friend, Kim, no longer works for them (damn downsizing), and Blue Underground, Severin, Troma, Cult Epics, and Synapse/Impulse Pictures got tired of the bureaucracy, and have sought distribution elsewhere, several going to CAV, headed by Jay Douglas, formerly of Ryko/ADA. See, there is life after Warner (and probably a more lucrative one).

So, please support your local rental stores (and even Big Blue), and don't give in to corporate bullying and bullshit.