Moronic bullies such as MPAA members are it seems doing their best to stamp innovation into the floor during their continued reign of unrivalled greed.http://www.zeropaid.com/news/9824/Universal+Studios+Demands+Cut+of+DVD+Kiosk+Revenue+%27or+Else%27
We always hear Hollywood carrying on about how its trying to innovate and satisfy the demands of consumers, but once again we see this couldn't be further from the truth. Following the efforts by the MPAA to make sure you can't back up purchased DVDs comes word that Universal Studios is targeting Redbox DVD rental kiosks.
On August 26th, 2008 representatives s from Universal Studios Home Entertainment (USHE) visited Redbox HQ in Oakbrook Terrace, Illinois and told them they had until the close of business the following day by which to sign a "Revenue Sharing Agreement." USHE also said that if Redbox refused to sign the Revenue Sharing Agreement and the distributors continued to supply Universal DVDs to Redbox, USHE would stop selling any Universal DVDs to VPD and Ingram beginning December 1st. In other words, sign the deal or we cut off your supply.
"This is a breathtaking attack on the first sale doctrine, which makes it crystal clear that once you've bought a DVD, you can rent and resell it at any price and on any terms you like," notes Fred von Lohmann of the Electronic Frontier Foundation. "Universal Studios apparently would prefer a world where millions of DVDs are shredded and put in landfills to one where consumers can rent a DVD for $1."
It's extortion at best.
This basic mafia style activity of "making you an offer you cannot refuse" has been the bedrock of the Hollywood money machine for years its only fair these mafiaosos want a cut of someone elses hard work, its in their selfish nature after all, as is the artificially inflated cost of their product, this article once again makes clear that they use any trick legal or otherwise to ensure the market price for their "product" remains high.
To me this all sounds like one of their stereotypical movies where a small time drug peddler is going around the block and undercutting the bigger gangs, likely he too would get a visit from the gangs enforcers and perhaps they would (in the style universal is trying here) demand the lions share of the profit cut when the reality is they have done nothing to earn a cent, is this the IP protection rackets way of doing business ?