Redbox Movie DVD Sales Represent a $16 Billion Market,and Rentals Make

Redbox
Movie DVD sales represent a $16 billion market,and rentals make up another $7.5 billion.Naturally,production studios would prefer consumers purchase DVDs rather than rent them.Production studios like Twentieth-Century Fox,Warner Bros,and General Electric refused to sell new releases to Redbox,a DVD vending machine company,until almost a month after new releases arrived in stores.Redbox,the ubiquitous DVD rental red kiosks found in- and outside of convenience stores,grocery stores,drugstores,fast-food restaurants,and Walmart,is cutting in on production companies' profits.These studios are tangled in lawsuits with Redbox.Sony,Paramount,and Lionsgate,on the other hand,permit distribution through Redbox,and Disney allows third-party distribution to Redbox.With more than 20,000 kiosks now in operation,Redbox ranks fifth in DVD rental revenues,which is impressive considering the rental fee is only $1.00.But Blockbuster is trying to steal vending market share by allowing NCR Corporation,known for ATM machines,to license its name to place Blockbuster Express kiosks in similar types of locations.
-Refer to Redbox.Production studios are potentially producing _____ among its existing distributors by allowing Redbox to rent their DVDs for $1.00.

A) vertical conflict
B) cognitive dissonance
C) supply management divergence
D) horizontal conflict
E) disintermediation