Source: Flickr

Studios have recently taken a stand against the hot new kids on the block movie rental services like Netflix and Redbox.  They say screw the customer, bottom line is all that counts, even with a dying service and product that is not primed for the future.  DVD purchases have been decreasing over the past few years as their prices keep on rising and the new rental services have expanded.  Netflix and Redbox have helped boomed the rental industry in a completely new way, and that’s on top of PPV and on-demand.  Why would a consumer ever want to buy a DVD again?  Well, it turns out we really don’t.  As someone who used to love adding new DVD’s to my shelf for no other reason than just to have it there to stare at in my collection, I have made the transition to Netflix and won’t look back.  Unless a can’t miss classic is in the $4.99 section, I’m not buying.

Recently a few big named studios have put restrictions on Netflix and Redbox with new releases, forcing the companies to wait 28 days before new movies could be used as rentals.  One company decided to take the opposite direction, and that company is Paramount.  Paramount agrees to same-day new release rentals going against the trend of other big companies.

I think this is a smart movie for Paramount, and oddly enough they have studies that say that new release rentals has no effect on their DVD sales.  I have no idea if this is true or not, I’m sure it also varies completely on the time of year and the movies that are out.  I mean if you have a crappy movie, no one in hell is buying it regardless of when its out or rental restrictions.  Not only does this news get Paramount’s name out there in a good press manner, it also keeps their movie titles out there for consumers.  Their new release movies will have a full 28 days advantage over other studios movies, keeping the titles in consumers minds for longer, a smart marketing decision in my opinion.  I like this move by Paramount and hope to see the other studios turn around and do the same thing and stop beating down on the little guy.

Do you like this move from Paramount?