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Fandango at Home Forum Guidelines

The Fandango at Home Forums are designed to help viewers get the most out of their Fandango at Home experience. Here, Fandango at Home customers may post information, questions, ideas, etc. on the subject of Fandango at Home and Fandango at Home -related issues (home theater, entertainment, etc). Although the primary purpose of these forums is to help Fandango at Home customers with questions and/or problems with their Fandango at Home service, there are also off-topic areas available within the Fandango at Home Forums for users to chat with like-minded people, subject to the limitations below.

Please post all comments in English. When posting a comment in the Fandango at Home Forums, please conduct yourself in a respectful and civil manner. While we respect that you may feel strongly about an issue, please leave room for discussion.

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Additionally, please keep in mind that although Fandango at Home retains the right to monitor, edit, and/or remove posts within Fandango at Home Forums, it does not necessarily review every comment. Accordingly, specific questions about Fandango at Home products and services should be directed to Fandango at Home customer service representatives.

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2. Email addresses, phone numbers, links to websites, physical addresses or other forms of contact information
3. "Spam" content, references to other products, advertisements, or other offers
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5. Comments that may potentially violate the DMCA or any other applicable laws
6. Comments that discuss ways to manipulate Fandango at Home products/services, including, but not limited to, reverse engineering, video extraction, and file conversion.

Additionally, please keep in mind that although Fandango at Home retains the right to monitor, edit, and/or remove posts within Fandango at Home Forums, it does not necessarily review every comment. Accordingly, specific questions about Fandango at Home products and services should be directed to Fandango at Home customer service representatives.

Terms of Use - User Comments, Feedback, Reviews, Submissions

For all reviews, comments, feedback, postcards, suggestions, ideas, and other submissions disclosed, submitted or offered to Fandango at Home, on or through this Site, by e-mail or telephone, or otherwise disclosed, submitted or offered in connection you use of this Site (collectively, the "Comments") you grant Fandango at Home a royalty-free, irrevocable, transferable right and license to use the Comments however Fandango at Home desires, including, without limitation, to copy, modify, delete in its entirety, adapt, publish, translate, create derivative works from and/or sell and /or distribute such Comments and/or incorporate such Comments into any form, medium or technology throughout the world.
Fandango at Home will be entitled to use, reproduce, disclose, modify, adapt, create derivative works from, publish, display and distribute any Comments you submit for any purpose whatsoever, without restriction and without compensating you in any way. Fandango at Home is and shall be under no obligation (1) to maintain any Comments in confidence; (2) to pay to users any compensation for any Comments; or (3) to respond to any user Comments. You agree that any Comments submitted by you to the Site will not violate the terms in this Terms of Use or any right of any third party, including without limitation, copyright, trademark, privacy or other personal or proprietary right(s), and will not cause injury to any person or entity. You further agree that no Comments submitted by you to this Site will be or contain libelous or otherwise unlawful, threatening, abusive or obscene material, or contain software viruses, political campaigning, commercial solicitation, chain letters, mass mailings or any form of "spam."

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Why are on-demand rentals so expensive?

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    #1

    Why are on-demand rentals so expensive?

    Back before redbox and netflix killed blockbuster, rentals used to be around $4. They used to be even less than that initially but blockbuster kept raising rental rates until eventually competitors emerged (netflix $8/mo, redbox $1 per night) that priced them out of the market. Cable companies then gave us broadband and began offering on-demand rentals for around $6. And now streaming services like Vudu have come around also charging around $6 a rental.

    Why are on-demand rental prices so outrageously expensive? Why is the cost of a rental through Vudu about HALF the cost of actually going to the theater, but Redbox is able to rent them out for ~$1 at kiosks? I was really considering Vudu until I saw the rates. With Redbox, I can watch 5 more movies than with Vudu so it makes no sense economically to use a service like Vudu.

    A streaming/on demand service that offers movies at the $1-2 would be a Redbox, Netflix, cable killer. I really can't understand why Vudu and others can't price it as competitively as Redbox does at its kiosks.
    Tags: None
    #2
    Re: Why are on-demand rentals so expensive?

    Originally posted by jd101 View Post
    Back before redbox and netflix killed blockbuster, rentals used to be around $4. They used to be even less than that initially but blockbuster kept raising rental rates until eventually competitors emerged (netflix $8/mo, redbox $1 per night) that priced them out of the market. Cable companies then gave us broadband and began offering on-demand rentals for around $6. And now streaming services like Vudu have come around also charging around $6 a rental.

    Why are on-demand rental prices so outrageously expensive? Why is the cost of a rental through Vudu about HALF the cost of actually going to the theater, but Redbox is able to rent them out for ~$1 at kiosks? I was really considering Vudu until I saw the rates. With Redbox, I can watch 5 more movies than with Vudu so it makes no sense economically to use a service like Vudu.

    A streaming/on demand service that offers movies at the $1-2 would be a Redbox, Netflix, cable killer. I really can't understand why Vudu and others can't price it as competitively as Redbox does at its kiosks.
    They charge more to make money. I agree it shouldn't be as expensive as it is...after all, they do offer a 99 cent movie of the day and I think they also have some $2.00 rentals (I might be wrong, but seems like I saw them).

    The difference between a streaming service and a DVD rental is that when you rent a DVD rental only you will be watching it on your DVD player. With a streaming service the digital copy of the movie is accessible by more than one person at a time and you are using the service provider's equipment to stream the movie over the internet. Therefore, it would cost a company like Vudu a little more in regards to their infrastructure for you to watch the movie. But I doubt it would cost $5 or $6.

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      #3
      Re: Why are on-demand rentals so expensive?

      We know the studios set the prices, not Vudu. If you check Amazon, and iTunes, you'll see they are all suffering by comparison to Redbox. Netflix per disc cost is comparable to Redbox.

      Comcast, and DirecTV are even higher cost per movie than Vudu, but that's not much consolation.

      Comment

        #4
        Re: Why are on-demand rentals so expensive?

        Redbox has infrastructure costs too (the kiosks, the reservation technology, credit card transactions, etc) and I presume it has to pay rent on the space their kiosks occupy. Blockbuster had infrastructure too. For many many years, people complained about the high cost of renting movies. Redbox listened. They perfected the pricing model - $1 per night and eliminated the entire concept of late fees.

        Now comes broadband and streaming technology. The rates get jacked up again and infrastructure doesn't explain it. Everybody has infrastructure costs. So either Vudu/Amazon/etc are all colluding to set the exact same price or the studios are setting the pricing (inexplicably much higher than for physical discs), in which case consumers are getting the shaft. No movie is worth $6 a rental. I wonder what the rental volumes look like at the $6 range because at $1-2, there's simply no price barrier to renting the movie. Vendors will maximize rental volume at that price range.

        Comment

          #5
          Re: Why are on-demand rentals so expensive?

          Originally posted by jd101 View Post
          Back before redbox and netflix killed blockbuster, rentals used to be around $4. They used to be even less than that initially but blockbuster kept raising rental rates until eventually competitors emerged (netflix $8/mo, redbox $1 per night) that priced them out of the market. Cable companies then gave us broadband and began offering on-demand rentals for around $6. And now streaming services like Vudu have come around also charging around $6 a rental.

          Why are on-demand rental prices so outrageously expensive? Why is the cost of a rental through Vudu about HALF the cost of actually going to the theater, but Redbox is able to rent them out for ~$1 at kiosks? I was really considering Vudu until I saw the rates. With Redbox, I can watch 5 more movies than with Vudu so it makes no sense economically to use a service like Vudu.

          A streaming/on demand service that offers movies at the $1-2 would be a Redbox, Netflix, cable killer. I really can't understand why Vudu and others can't price it as competitively as Redbox does at its kiosks.
          I would summarize it in one word: greed.

          They are profiting from your never-ending quest for convenience. Of course the overhead for a streaming service is just a fraction of maintaining a network of kiosks (let alone a network of stores with employees!). As long as they all keep it at $6, there is no reason for a price war.

          You want to see lower prices? If all users flock to one service, the others will inevitably drop theirs.

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