Blockbuster having trouble expanding its business model

Ernesto of TorrentFreak.com has an interesting story today about the problems retailers face when trying to get involved in the business of watching movies online. First off the Movie business is big business, and big business costs big money, with the studios demanding very hefty up front fees to be paid by companies who want rights to the licenses to rent out film services. In the past this was kept in check somewhat, by the number of physical copies being agreed upon between a retailer and a studio, this being fairly easy to map out in terms of value. Now days however things aren’t quite so simple.

That’s not all. In an attempt to boost flagging retail sales of DvD’s, most of the major studios are now delaying their legitimate online release. Stopping Netflix (for example) from showing such movies until four weeks after the DvD of a film goes on a sale. Clearly all thats going to do is hurt Netflix and help the people who are circumventing the normal supply routes for this kind of entertainment.

Piracy Isn’t Killing The Movie Industry, Greed Is