Rentals for the People

So, Mr. MG Siegler of Techcrunch (follow him on Twitter!) posted an article the other day about Paramount Home Entertainment’s deal with Redbox to continue making their movies available for rental on the same day they are made available for purchase.

Wait, A Hollywood Exec Actually Making Sense With Regard To Movie Rentals And The Web? ~ MG Siegler (TechCrunch, 06.17.10)

Siegler reminds readers that Paramount’s is a decision that has been vetoed by other major studios (e.g., Fox, WB, Universal), who have instead opted to make renters wait 28 days post-release before they can pick up their films through Redbox.

Now, I personally do not indulge in movie rentals because I don’t have time to watch the dozens of unopened films I already own. (Okay, I do have time, but always seem to end up following more trivial pursuits, despite my passion for movie-watching.) In addition, I’m more of a collector than a borrower. If I really like a film (or think I will), I have to own it. Granted, there are probably hundreds of movies that I would like to take a peek at, but that I don’t feel like adding to my collection, most namely: comedies/romedies. Great for a few laughs and some mind-numbing entertainment, but lack of real plot and overused raunchy humor usually turns me off of actually purchasing any titles falling into those categories.

Back on topic, it seems that Paramount has to chosen to exercise a little common sense. In the long run, pushing back the rental window for new-release films is not going to send the masses running for their nearest media retail outlet, desperate to plunk down $20-$30 for a title they’d hoped to view (and return) for a dollar. Most people will probably either:

a) Find another (perhaps illegal) source for viewing the film (studio gets NO money)
b) Rent an older title instead and wait out the 28 days until the film they really wanted to watch is available (studio still only gets $1 per rental)
c) Mill about the Redbox kiosk, murmuring in confusion because the title they’re looking for is on the COMING SOON list, even though the retailer in which the kiosk resides advertises the movie as ON SALE TODAY. This will result in angry complaints to retail employees, who “never did anything to deserve this, curse you Redbox” (studio loses money because angry consumers and retail employees have sworn to boycott Redbox altogether).
d) Decide to just go to the theater instead (studio may or may not make money, depending on which film is ultimately viewed).

Or, folks may turn around and actually pay for a copy of the movie. While this seems unlikely, some people are like sheep and will go where directed if prodded hard enough. The question is: is delaying rentals actually the best way to direct consumers towards buying a (legitimate) copy of the film? I cannot speak for the average consumer, but, for me, removing something that I’m accustomed to having day-one access to is not going to inspire a sudden urge to go looking for a more expensive alternative. A little more incentive needs to be produced. For instance: create a special “coming soon” section of the rental kiosks for titles available in stores, but not for rental. Each title could have a placeholder with the date it will become available for rental and $5 coupons good towards the purchase of a DVD or Blu-ray copy of the film.

For those who were only looking to spend a dollar on a cheap movie night, or didn’t have more than a dollar to spend anyway, that’s not going to be a very effective sales tactic. However, for those who may have been considering a purchase anyway, but wanted to preview the movie before deciding, while finding out the movie was unavailable would have sent them on their way, the coupon might cause them to look twice and reconsider investing in their own copy. Especially if the coupon is only valid for a limited time.

Retailers use coupons to manipulate consumers’ “it’s-on-sale-so-it’s-a-deal” impulse buy instincts all the time. Something that a shopper would never have considered buying previously is suddenly a hot item because, “Oh, there’s a coupon.” Why shouldn’t movie distribution studios take the same approach? In order to coax people into doing something they would normally do (purchase a new-release film on disc), you don’t punish them with pointless restrictions (delay of availability for rental); you offer a little incentive, and make consumers think they’re getting a deal (e.g., coupons). Less stick, more carrot.