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Marmaduke in favor of kiosk window

October 8, 2009 Hastings chief John Marmaduke makes one of the most clear and well-reasoned arguments against Redbox and $1 per night DVD rentals that I've seen, in a blog post on The Wrap. Marmaduke writes in response to the forum The Wrap gave Redbox's Mitch Lowe earlier in the week.

The crux of the matter, from Marmaduke:  "... if new releases would be available for $1 rental, consumers would be encouraged to forgo watching a movie in the theaters and instead wait a few months. Consumers would be discouraged from renting from bricks-and-mortar video stores -- putting these stores out of business and reducing access to the thousands of movies that can't fit into a kiosk. Consumers would be discouraged from watching the movie on pay TV or streaming to their computer for $3.99 when the movie can be rented for a single dollar. Consumers might not buy a DVD if they know they can rent it occasionally for just $1. And the examples go on and on. If movies are devalued in this way, those who work in the movie industry will be directly harmed. Reduced industry revenues will mean that fewer movies are produced -- directly reducing the number of jobs available to people who work both in front of and behind the cameras."

Posted by Marcy Magiera on October 8, 2009 | Comments (1)

October 10, 2009
In response to: Marmaduke in favor of kiosk window
Everett commented:

Wow! Talk about stating the obvious. The problem is more about short term results (greed) for the studios and not long term viability. The studios continue to shoot themselves in the foot with no real plan on how to deal with disc media, downloads, hi-def, etc. They are easily swayed by big dollars near term w/o fully seeing the impact to their future and the overall industry. They want to blame their DVD problems on a glut of used product, but somebody bought the product new at one time. The question here is, at what price was it purchased new. No one wins if the studios do not maintain value in their product.

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