Blockbusted

Blockbuster has apparently forged a deal with the Weinsteins that will give it sole rental rights to their movies. So forget Netflixing the next Bob and Harvey flick; it's drive to Blockbuster or shut up. Ezra Klein, naturally, thinks this is a travesty of cinematic justice:

In what seems like a truly stupid idea, the Weinstein's have inked a deal to give Blockbuster exclusive rights to their future DVDs. So Bobby, The Nanny Diaries, The Protector, and many others will be kept out of Netflix, Hollywood Video, and local stores. Blockbuster will be your only option. Which is bad for consumers, who'll see their choices restricted, and bad for those involved with the movies, who'll see their efforts constrained to a limited audience. It's the TimesSelect of film distribution: bad for everything but the bottom line.

I was ready to agree with him until he mentioned The Nanny Diaries. The fewer people that see that movie, the better.

No, seriously, this just doesn't strike me as all the malicious. Dumb, perhaps, and bad for business, but nothing to get worked up over. For some unknown reason, Klein thinks this will be profitable, and maybe in the short run, the Weinsteins will eke out some gains from whatever payouts Blockbuster makes for the rights. But my guess is that this rather odd business model will fail to draw much foot traffic into the spiraling black hole of earnings that is Blockbuster. Brick and mortar rental stores are dying fast, and between the varied threats of Netflix, iTunes movie downloads, and the planned Xbox Live HD download service, I can't imagine this small deal, covering only a few movies, doing much for either company. Blockbuster won't get much of a boost, and, though the Weinsteins will get Blockbuster's payments, their rental numbers will be the pits. After a while, both sides will see the folly of their deal and the whole thing will go under. It's called a market, and it works.

And, on a side note, close your browser for a moment of net-silence in honor of Milton Friedman. Or, in lieu of that, click here to watch a choral version (really!) of Friedman's classic take on corporate social responsibility.