Rentals too big a competition for movie studios

Hollywood major studios are seriously considering forbidding movie rentals until weeks after the movie has been available for purchase, according to Los Angeles Times.As movie rental chains such as Netflix and Redbox are becoming increasingly more popular and are having impressive revenue growths, film studios are worried about movie sales continuous decline.

Movie sales have been in decline with online downloading and the very profitable rental businesses such as Redbox and Netflix. In an attempt to gain some control over the policies studios like Universal Pictures and Warner Bros., which are worried about the future of films, have tried to impose policies on Redbox and are now in discussions with rental businesses on delaying rentals until weeks after movies releases, reported LA Times.

Movie rental offices seem to be cooperating smoothly with studios but the general public's reaction is what will, at the end no matter the decision, decide how whether the companies were right or wrong on the decision.