It's true I was pissed about The Weinstein Company making an exclusive retail deal with Blockbuster. But once I cast aside my considerable narcissism I realized their dealmaking wasn't about using unfair business practices against Box Office Video. Instead Blockbuster is stepping up its war against Netflix.
Evidently what Blockbuster and TWC are planning is to digitally label the DVDs as not appropriate for rental from any retailer but Blockbuster. There is, however, something called the First Sale Doctrine, which says any rental store can buy any disc and use it as part of its rental inventory. Trevor Drinkwater, CEO of Genius, and a mastermind of this master stroke said,
"With the First Sale Doctrine, there's nothing we can do to prohibit someone from walking into Costco and buying the DVD and renting it. What we can do as a distributor is brand all Blockbuster DVDs with the Blockbuster logo, and all the DVDs that are out for sale will be clear to consumers as being for sale only. We'll encourage people to call us if they did rent [a DVD that is labeled for sale]."
This means you can expect BOV to gleefully buy, say, Emilio Estevez's "Bobby", and rent it to our customers whether there's a message to our customers telling them the discs are intended for sale only and shouldn't be rented. It won't make a bit of difference to us. But I can't imagine that Netflix will have the same attitude. Netflix probably won't think it's as funny as I do that they will have to go into Costco and buy tens of thousands of DVDs, then send them to their customers with a big message from Blockbuster saying they are committing a criminal act.