Warner: Destroy, don’t sell, these discs

06 Aug 09 00:05 by Jared Newman in category Movies

Warner Home Video is suing a firm that’s supposed to destroy the studio’s old DVDs and Blu-ray discs, because the firm was allegedly selling them instead.

It’s news to me that there’s even an industry for this. Warner apparently partners with Cinram Distribution for the destruction or recycle of unsold movie discs. These are discs that weren’t sold at retail, but that Warner fears will cannibalize the sale of newer, more expensive products if liquidated on the cheap.

Cinram, in turn, subcontracts with other companies for the destruction work. One of these companies is IWMB, which Warner alleges has sold roughly 1 million discs back to retailers for below market price, Video Business reports. The lawsuit, filed last week in Los Angeles Superior Court, claims that roughly 750,000 of these cheap movies have already been sold back to customers.

dvddestroy

Warner claims that it has lost $10 million as a result of IWMB’s actions, due to lost sales of other movies.

The lawsuit comes at a time when studios are trying to limit the amount of used disc sales at retail. Video Business notes that a recent revenue-sharing agreement between Warner and a company called Rentrak limits the amount of used movies that can be sold from rental stores. As part of the agreement, stores are required to destroy as much as 80 percent of their stock, depending on how successful the movie is at the box office.

That’s a lot of waste, even if it’s recycled, and it’s also a lot of content people could be watching. From a business perspective, I won’t fuss about the destruction of old DVDs and Blu-ray discs, as the concern over devaluing new titles seems valid. But if anything, this is another great argument for the merits of downloadable video.

26 Comments on Warner: Destroy, don’t sell, these discs

Darkseid001
Posts: 24
Posted on: 06 Aug 09 01:08
Where can we buy them?
debro
Posts: 13372
Posted on: 06 Aug 09 02:06
I wonder whether Warner is going carbon neutral for the disposal of those discs.
Anthony1uk
Posts: 387
Posted on: 06 Aug 09 02:35
Why bother with any of this, if they don't want to sell them just give them to rental companies.

And if they did they will be scratched beyond all playability within a week anyway.
Dartman
Posts: 1777
Posted on: 06 Aug 09 07:45
Really depends on what the movies are but I bet no consumers who ended up buying said disks got a discount either when they bought them.
It does figure they'd rather destroy content rather then let it out and risk messing with the pricing monopoly they all seem to enforce on new releases of BD movies.
Nick.C
Posts: 1712
Posted on: 06 Aug 09 09:14
It just goes to re-affirm that the pricing of DVD / BD has absolutely nothing to do with the media / distribution costs - it's all in the ridiculous unit charge for the content....
diane7
Posts: 4502
Posted on: 06 Aug 09 10:48
I like Anthony idea give it to rental companies ;-)

I have hired Movies that my DVD hire has got in 3 days and wont read...
davecuk
Posts: 34
Posted on: 06 Aug 09 13:18
I was at a friends house and he was watching a movie on his laptop and complaining about the scratched poor condition disk and the playback problems. After cleaning properly he eventually got it to work.

At the end of the movie, he removed the DVD and placed it face down on the (not too clean) table. Later after a coffee, he placed his hand on the top of the disc and pulled it to the edge of the table (playing surface down), and then slipped it into the pouch to return to the rental company.

I pointed out that his own treatment of a DVD only had to be copied by about 20 people for it's condition to become as bad as the DVD he was holding. Needless to say my comments were neither welcomed and I don't think were taken on board. Some people after they have watched a rental movie simply don't give a shit about anyone else being able to watch it. I have had many DVDs with dried food on them, for god sake how do they manage that.
Chuckwagon
Posts: 163
Posted on: 06 Aug 09 19:59
Ok, let me get this straight. Warner has bunches of DVDs and BD discs out in the market, and they aren't selling. Warner assumes they won't sell, so, rather than lower the price to generate interest, they eat the cost of producing those discs and compound that loss by paying someone to destroy the discs. (Not a real bright move, but whatever, if they don't want to be profitable, so be it.) Then it turns out that the company that was supposed to destroy them turns around and sells them.

So now Warner is pissed, and claims that they have lost revenue because this other company sold the discs that Warner itself couldn't/wouldn't sell. But Warner had already decided they couldn't be sold, right? Nobody wanted them, and that's why they were to be destroyed, isn't it? So how are they losing money? They tried to sell them, and failed. Clearly if the discs had been left in Warner's control they would never have been sold. So it isn't like they are really losing anything. Or are they claiming that people who wouldn't buy the overpriced crap the first time around would buy the same crap in a new package, if they hadn't already bought the crap from the other company? Sounds to me like the management structure at Warner needs an enema.

pinto2
Posts: 7658
Posted on: 07 Aug 09 02:14
Must have been some pron titles they couldn't sell in US.
[joke quote] Better send them as "aid" to africa or asia or even better; my way. [/joke]
debro
Posts: 13372
Posted on: 07 Aug 09 05:46
Quote:
Originally Posted by Chuckwagon View Post
Ok, let me get this straight. Warner has bunches of DVDs and BD discs out in the market, and they aren't selling. Warner assumes they won't sell, so, rather than lower the price to generate interest, they eat the cost of producing those discs and compound that loss by paying someone to destroy the discs. (Not a real bright move, but whatever, if they don't want to be profitable, so be it.) Then it turns out that the company that was supposed to destroy them turns around and sells them.

So now Warner is pissed, and claims that they have lost revenue because this other company sold the discs that Warner itself couldn't/wouldn't sell. But Warner had already decided they couldn't be sold, right? Nobody wanted them, and that's why they were to be destroyed, isn't it? So how are they losing money? They tried to sell them, and failed. Clearly if the discs had been left in Warner's control they would never have been sold. So it isn't like they are really losing anything. Or are they claiming that people who wouldn't buy the overpriced crap the first time around would buy the same crap in a new package, if they hadn't already bought the crap from the other company? Sounds to me like the management structure at Warner needs an enema.

Warner then claims the losses on insurance, thereby increasing everyones insurance premiums
negritude
Posts: 4766
Posted on: 07 Aug 09 11:15
What's the big deal? So what? You should be more concerned about the amount of food that gets destroyed and trashed in order to prop up the market rates on commodities. That's the real shame of America. You do know that they pay farmers to destroy food, don't you? You do know that the government pays farmers to not grow food, don't you? So, just leave Warner alone. They ain't doing nothin' that nobody else ain't already doin', and in a much less critical area.

This is how Capitalism works. Deal with it.
omegaman7769
Posts: 175
Posted on: 07 Aug 09 11:30
Man...I understand that "Business is Business", but WHAT A WASTE!!! Im sorry, but I was raised doing quite the opposite. This is absolutely DISGUSTING! At least dump them on my front porch
VistaMac
Posts: 1
Posted on: 07 Aug 09 16:36
This is true so much waste,they would rather waste then lower the price,I also have some room on my front porch. lol
olyteddy
Posts: 6596
Posted on: 07 Aug 09 16:38
Wasn't this: http://www.imdb.com/title/tt0299930/ a Warner release? If so, they should drive a wooden stake through it and burn it...
johnnykaraoke
Posts: 14
Posted on: 07 Aug 09 19:12
if you're gonna give them away ... hwo about the Library system. I'm sure they could get a tax write-off, too, in doing so.

The poor, like myself, ;-) can have access to movies, as an alternative to renting or purchasing

I have borrowed many movies and music DVD from the local library, even to check out the supposed stinkers that you can viewfor free, rather than pay money to BlockB@st@rd, who purposed hype cr@p movies, as classics
omegaman7769
Posts: 175
Posted on: 07 Aug 09 19:24
Holy cow! olyteddy, thats the worsed rated movie ive ever seen! Although, Beverly Hills Chihuahua comes close
JaredNewman
Posts: 998
Posted on: 08 Aug 09 02:20
You know, I knew it was going to be Gigli without even clicking on the link.
sfdj
Posts: 13
Posted on: 08 Aug 09 08:56
Proves once again "One man's junk is another man's treasure".
PLUS, I seriously do not understand why companies in this country insist on promoting "wastefulness" just so that they can sell more crap.... SHAME ON THEM!!
sfdj
Posts: 13
Posted on: 08 Aug 09 09:05
So I guess if everyone starts shooting other people... that'll make it OK, too?!?!
sfdj
Posts: 13
Posted on: 08 Aug 09 09:09
What's the big deal? So what? You should be more concerned about the amount of food that gets destroyed and trashed in order to prop up the market rates on commodities. That's the real shame of America. You do know that they pay farmers to destroy food, don't you? You do know that the government pays farmers to not grow food, don't you? So, just leave Warner alone. They ain't doing nothin' that nobody else ain't already doin', and in a much less critical area.

This is how Capitalism works. Deal with it.

????? So I guess if everyone starts shooting other people... that'll make it OK, too?!?!
silver30
Posts: 147
Posted on: 09 Aug 09 07:56
They could at least give it to a local library or something. Maybe one of those movies might gain cult status.
jfdi66
Posts: 2
Posted on: 09 Aug 09 18:49
And why not issue 'em to old folks homes, hospitals and orphanages? This sort of fanatical protectionism makes me immune to claims that P2P is wrong - and so do those dreadful adverts the DVD companies shove down our throats that you cannot skip through before seeing the DVD you have actually paid to watch.....
debro
Posts: 13372
Posted on: 10 Aug 09 01:27
Quote:
Originally Posted by sfdj View Post
What's the big deal? So what? You should be more concerned about the amount of food that gets destroyed and trashed in order to prop up the market rates on commodities. That's the real shame of America. You do know that they pay farmers to destroy food, don't you? You do know that the government pays farmers to not grow food, don't you? So, just leave Warner alone. They ain't doing nothin' that nobody else ain't already doin', and in a much less critical area.

This is how Capitalism works. Deal with it.
Wow ... capitalism sounds like it's going to be the downfall of the entire world .... communism is looking good now, at least in regards to sustainability ...

Quote:
Originally Posted by sfdj View Post
????? So I guess if everyone starts shooting other people... that'll make it OK, too?!?!
Yeah ... I've always wondered why US guns laws are so lax
HmNtr
Posts: 3
Posted on: 12 Aug 09 00:59
Another possibility for the movie industry is if the DVDs do not sell well in the retail store, they should stock them instead on Amazon.com or Craigslist.org, and sell them in bulk.

I mean, come on. We all know that the movie only takes about 50 cents per disk to manufacture (including DVD, cover and case), because they are pressing the movies in countries like China and Mexico, where they can get real cheap slave labor for a few dollars a day, per worker.

The posts here are all great ones, the movie industry could do many of them, and still make a profit, by claiming the DVDs they give away as a charitable donation, to colleges, high schools, libraries, hospitals, nursing homes, orphanages, harbor schools for troubled children, job corps, or even better yet: SEND THEM TO OUR TROOPS OVER SEAS, LET THEM HAVE SOMETHING TO ENJOY FROM BACK HOME!

Time-Warner, Fox and their ilk make me sick.

When I was younger, I downloaded all sorts of movies from the net. I knew it was wrong, but I was a kid in college, paying his own way, no money to even get a car, or a date, let alone money to go to the movies or anything. I downloaded movies, and at one time, I had all the new releases before they even came out!

I had Jason X six months before it hit the theater, American Pie 1: three months prior to theeathers, American Pie 2: two months prior to theater day, American Pie 3: 3 days before it hit the theaters!

This is an indication of how well movies traveled over the internet, and this was in the so called "golden age of AOL", because all of my movies and such that I had downloaded 8 to 10 years ago all came from AOL chat rooms.

Granted, they were not DVDs, or even DVD quality. They were AVIs, VCDs and SVCDs; movies that could be burned onto 2 or 3 CDRs, and were good enough to watch for about a few months, until the real movie came out on DVD and I could buy it if the movie was any good.

I am glad that I am not all caught up in downloading junk anymore, and glad that I no longer have AOL. I am glad that the movie industry is failing. It makes us all go watch online TV and such, or better yet: watch foreign films in different languages from different countries, with English subtitles!

And the best option of all: stop watching sitcom and reality TV, and stop going to the movies or buying movies. Read more books, go back to school to further your education, because in the end, the DVD is going to go the same way as the VHS Tape, and we will one day have to pay to watch every show, every movie, and every channel as it is beamed to us À la carte.

Bottom Line: We, the little people, are screwed, and the only voice that these companies will hear is when we all decide not watch or buy their inane and mindless trash any longer. Hit them in their wallets, and make sure they bring back quality entertainment, instead of the mindless dribble they try to force upon us each day.
Icy Mt.
Posts: 633
Posted on: 12 Aug 09 15:43
Quote:
Originally Posted by negritude View Post
You do know that they pay farmers to destroy food, don't you?
But you can't download a bushel of wheat via BitTorrent.
Quote:
Originally Posted by johnnykaraoke View Post
if you're gonna give them away ... hwo about the Library system. I'm sure they could get a tax write-off, too, in doing so.
Donate unsold movies to the Library! BRILLIANT!
Quote:
Originally Posted by HmNtr View Post
And the best option of all: stop watching sitcom and reality TV, and stop going to the movies or buying movies. Read more books, go back to school to further your education, because in the end, the DVD is going to go the same way as the VHS Tape, and we will one day have to pay to watch every show, every movie, and every channel as it is beamed to us À la carte.
Good idea on the reading and school. I'd be happy to pay a reasonable fee to watch decent content in high quality. However, since anything that can be beamed, streamed or otherwise digitalized can be captured and shared, so the term reasonable probably means a far lower number to me than to Time Warner.
Opus2Step
Posts: 3
Posted on: 12 Aug 09 16:46
Typical of the Movie Studios and Record Companies.

It's as if these companies are being run by drunken monkies.

They created their own mess with their greed and constant instance of over-charging, redundancy and inferior products all in the name of 'Copyright/Publishing Rights protection.

But for decades they come up with business practices and approaches that only sevrve to shoot themselves in the foot and undercut their own goals.

They alienated and screwed their own customer bases so many times over and yet, they can't figure out why the customers have nothing but contempt for them. Not to mention musicians, songwriters, writers and studio engineeers.
Tell us, what do you think about

Warner: Destroy, don’t sell, these discs

Most popular headlines

Windows Blue to allow boot to desktop and brings start menu back? (3)

  • Tue 16 Apr 16:12 by DoMiN8ToR
  • Software, Windows 8

The upcoming update of Windows 8 might allow users to boot to the desktop again.

Jobs in US entertainment industry on all-time high - piracy?! (8)

The number of jobs in the film and music industry in the United States has increased despite the claimed negative effects of illegal downloads.

The Piratebay domain moves to Greenland - circumvents blockade (3)

The PirateBay has moved to the domain thepiratebay.gl in fear that their previous domain would be ceased by Swedish authorities

Intel 9 series chipset has native SATA Express (SATA over PCIe) support (2)

A Chinese tech site has posted a picture that reveals details on Intel's 9 series chipset.

See all headlines

Active Commenters