Fox will strip Special Features from Rental DVDs

[Sussudio]

From CNET:

A few days ago, we pointed out that more people seem to be renting DVDs rather than buying, which means the studios are making less money on their former cash cow. According to a recent report by Video Business, Fox is trying a new strategy to encourage DVD purchases, by releasing two different versions of the DVD: the standard retail version with deleted scenes and commentary tracks, and a stripped-down rental version including just the movie. Movies such as "Slumdog Millionaire," "The Day the Earth Stood Still," and "The Wrestler" are set to get the treatment, which means you can expect to see the bare-bones versions at your local rental store in a matter of weeks.

Interesting move. It seems a lot of people on here don't care as much for the extas (based on polls and discussion in threads), and I'm sure many people won't be that disappointed by the lack of extras on most movies, not to mention I don't foresee anyone NOT renting a movie because it lacks the special features. What do you guys think?

[tw33k2514]

Sounds to me like Fox is going to waist their money on multiple copies of movies, when in reality it will probaby have little to no effect on DVD sales.

[fatediesel]

Yeah, I only watch the special features on a movie I really like or am interested in, and in that case I would buy the movie. This makes no difference to me. I'll still be renting Slumdog, The Day the Earth Stood Still, and The Wrestler.

[xtop]

wtf. sounds weird. its cool tho, nobody will even notice

[Marquoz]

If I rented in the first place that would tee me off to no end.

[gr3y]

I've noticed FOX has only had like 2-3 'extra' features on thier disc lately anyways? Not a big difference from what theyre releasing lol

I prefer Special Features.

[jadedeath]

Been sort of happening for awhile now.

Once upon a time the production companies would send 2 disk editions to stores for rent, now that's extremely rare {if ever} and this is just the next logical step.

Bring on the Blu-Ray.

Logan

[STARSCREAM]

Originally Posted by tw33k2514

Sounds to me like Fox is going to waist their money on multiple copies of movies, when in reality it will probaby have little to no effect on DVD sales.

+1. This won't stop people from renting at all. When I rent I do it to see if I like the movie enough to buy it. I never watch any special features when I rent something. I rent, watch, take it back.

[Forrestandjen07]

wouldnt it cost them MORE to produce two differnt types of discs?

instead of just one standard dvd?

[jadedeath]

Originally Posted by Forrestandjen07

wouldnt it cost them MORE to produce two differnt types of discs?

instead of just one standard dvd?

Not really.

The rental DVD's cost more for the companies buying them.

Plus, they'd have to produce less of the bare bones disks than the special editions due to the fact that some folks might want the cheaper bare bones disks.

Logan

[DaMexiRican]

I never watch the special features so no big deal for me.

[cartman781]

No biggie for me either.

[PH3AR]

Originally Posted by xtop

wtf. sounds weird. its cool tho, nobody will even notice

+1

hardly ever watch special features

[FadetoBlu]

The only thing I care about in extras is deleted/extended scenes,behind the scenes/making and outtakes/gag reel.

[Chevypower]

I don't care. A waste of effort to remove them, if anyone cared that much about the movie to want to see the special features, they would buy the movie - after/instead of renting it

[Marquoz]

This will hurt the secondary sales of Blockbuster though. They will have to price the Previously Viewed movies to take into account the complete lack of extras. I've picked up movies there before from their cheap bin, but once this starts, I won't ever do that again. I'm not going to spend my money on a purposefully inferior product when I can spend pretty much the same amount and get it used somewhere else.

[jw]

nothing says they have to buy them, they are welcome to go to WM and buy them, its not against the law...So this is just gonna hurt the distributors with the ridiculous prices anyhow

Fox’s ability to enforce its terms is limited, however, by the First Sale Doctrine, which gives retailers the right to rent any legally purchased copies.
Distributors and retailers contacted by VB said they understand Fox’s desire to add value to retail product and drive consumer sales, particularly given the current economic challenges and DVD’s falling sales industrywide, but many are not happy with the move.
Wholesalers lamented that they can’t prevent retailers from buying a premium sell-through version of Slumdog elsewhere, for example at Wal-Mart, and turning around and renting it to their customers.
“Distribution is now in the position of being the cop, and I don’t like being in that position,” said one wholesaler source. “Distribution is mad as hell. The video store owners aren't supposed to buy [sell-through] versions from us, but they’ll go buy it elsewhere.”
Some stores, such as Seattle’s Scarecrow Video, are already planning to creatively get around Fox's rules.
The store will bring in 30 rental DVD copies of Slumdog from its distributor and go to another store to buy at least one of the bonus-filled sell-through DVD versions, which it will keep on the shelf for rental long after it sells off as used most of the designated rental copies. The outlet plans to do the same thing for Wrestler.
Mainly, Scarecrow is worried about annoying customers, who might wrongly assume they’ll get bonus features with the rental Slumdog and Wrestler standard DVDs.
“Can you imagine explaining this to all of your customers?” Scarecrow buyer Mark Steiner asked. “People will think when they rent, it should have everything on it. And why shouldn’t it? This is just silly, and consumers aren’t going to be happy.”
Most of the Video Buyers Group’s 1,800 indie rentailers will likely follow Fox's rules, VBG president Ted Engen said.
“We understand the plight of studios trying to add value to the sell-through side,” Engen said. “And I’m under the impression we’ll be able to get all the sell-through and the rental copies we’ll need.”
Yet, it will be impossible to completely stem the flow of retail copies to rental, Engen acknowledged.
“There’s no question that some rentailers will go and buy from Wal-Mart and rent out the copies, and you can’t stop that,” added Engen. “But it’s not going to be that big of an issue as people think. The main thing is that studios have to add value to get customers to buy, and they aren’t buying. Numbers have been falling through the floor.”

I dont think this is gonna last long and blu-ray is unaffected by this

better article

[Sussudio]

thanks for posting that, explains a lot more

[jw]

Looks like Fox failed, Slumdog orders mixed up
Source VB

Retailers received units of Slumdog Millionaire containing wrong discs

By Susanne Ault -- Video Business, 4/1/2009

APRIL 1 | 20th Century Fox Home Entertainment’s new initiative to distribute two classes of discs for the sell-through and rental markets has stumbled out of the gate, with Amazon.com and other retailers receiving the wrong versions of March 31 release Slumdog Millionaire.
Amazon and other retailers, including Seattle’s Scarecrow Video, received rental DVDs of the Best Picture Oscar winner, with no bonus features, inside retail packaging.
In other instances, retailers that had ordered rental copies found that inside rental packaging were extras-loaded retail versions.
Amazon has posted a note on its site telling customers that many of the Slumdog Millionaire standard DVD copies are missing extras. The site also has listed a Fox hotline number, 1-888-223-4FOX, so customers can ask to have discs replaced with ones that include the special features. Callers should be directed to a Fox Web site, where they can watch missing features for free while they wait for correct discs to arrive in the mail.
“Fox regrets any inconvenience this has caused,” the Amazon post says.
The studio did not immediately comment about the problem. Fox believes the mix-up is a small, isolated problem, say sources, and that they moved quickly to remedy the situation.
Scarecrow Video buyer Mark Steiner called the listed Fox number on Tuesday to get replacement discs for ordered titles with missing extras, but he hadn’t gotten a response back from the studio as of Wednesday morning.
“We played their game, and we ordered the rental versions and put those out like we were supposed to do, and now we are not getting the right sell-through copies that we ordered,” said Steiner. “I feel like we played by the rules and got screwed.”
Steiner is especially upset because his store was betting on the acclaimed Slumdog Millionaire, which grossed $137 million in theaters, to be its hottest-performing title in March.
“We were hoping to make money on this title and now we can’t,” Steiner said. “I don’t want to send customers off with the wrong copy.”
Beginning with the releases of Marley & Me and Slumdog this week, Fox is distributing two classes of discs to stores: premium versions of its DVD and Blu-ray Disc titles with added-value material such as digital copy for the sell-through market and stripped-down offerings for rental.
Slumdog Millionaire, for example, has special features on the retail DVD but not the rental version. On Blu-ray, it has bonus features on both the rental and retail versions, but only the retail package includes digital copy.
Stores also report that Fox had issues getting its program rolling for March 31 release Marley & Me. The studio chose not to send out any standard DVD rental copies, which where to carry special features but no digital copy, apparently because it did not have time to manufacture the discs to meet street date deadlines. Instead, all stores got the retail version, which includes digital copy.
The Fox program is scheduled to run through the spring, spanning titles including The Day the Earth Stood Still, Notorious, The Wrestler and Bride Wars.
“It’s a nuisance,” said one retailer dealing with sell-through copies sent inside rental boxes for Slumdog Millionaire. “I hope this is a one-time thing, because going forward, it's Fox’s plan to keep having separate rental and retail SKUs.”

[Teabaggins]

will they do the same with blu-rays and sell the bare bones ones for less? I would probably buy a few like that. My bare bones Sin City is perfect for me the way it is