Redbox battles Hollywood studios over $1 DVD rentals

Clark has been excited about Redbox.com ever since the company first launched.

This service allows you to rent new release DVD for $1. You can even reserve a movie online before going to pick it up at one of their 15,000 locations. Now the company is experimenting with Blu-ray DVD rentals for $1 at select locations.

However, the major Hollywood studios hate Redbox because it's demolishing their profit margins. The studios are terrified about a widespread change of perception about what a DVD should cost. Why would anyone pay $15 for a new release when you can rent it 15 times over for the same price?

Remember, Redbox is not stealing the movies like people steal music on the Internet. They're paying for them and then offering them for rent. The studios are just upset that consumers are getting a deal on their product. Tough, says Clark.

The Los Angeles Times reports Redbox is suing Warner Home Video. The studio is allegedly trying to delay release of its films to the $1 DVD rental company for 28 days until after they're commercially available elsewhere.

Instead of trying to control how, when, where and at what price we watch movies, the studios should concentrate on making quality films.