One analyst says an earlier release window, before Redbox and Netflix, is the solution.
Studios have been wrestling with the problem of low cost rental services like Redbox and Netflix, and they haven't come up with a great solution. Some push back the availability to these services by a few weeks, but analyst Richard Greenfield says that isn't the answer.
"Studios need to create an earlier release window where consumers do not have the ability to choose low-priced options such as Redbox or Netflix," writes Greenfield. He suggests that full priced versions available on demand through cable providers and services like Vudu are the way to go.
With fewer people heading to the theater to see movies, Greenfield sees electronic distribution as the future. "Disregarding what consumers want in a period of rapid technological change/development is a recipe for disaster," he warns.
Source: Home Media Magazine