Warner Bros New Releases Delayed 28 Days on Netflix

[Chris Gohlke]

<div class='os_post_top_link'><a href='http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/01/warner-bros-new-releases-to-stay-off-netflix-for-28-days.html' target='_blank'>http://latimesblogs.latimes.com/ent...or-28-days.html</a><br /><br /></div><p><em>"Marking the first step in what could be a major change in Hollywood's relationship with Netflix Inc., Warner Bros. has struck a deal with the fast-growing online DVD subscription service that will prevent it from offering new releases until 28 days after they go on sale. The studio is hoping that the four-week "window" will push consumers interested in watching movies at home to purchase the DVD. Warner already imposes an identical window on $1-per-night kiosk company Redbox and its competitors. Although its unilateral move against Redbox has led to a court battle, Netflix agreed to the 28-day window in exchange for improved financial terms, higher inventory levels and increased access to content for its online streaming service."</em></p><p><em><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/dht/auto/1262826593.usr10.jpg" style="border: 0;" /></em></p><p>I'm really kind of disappointed that Netflix caved in to the studios on this one. &nbsp;I completely understand why the studios wanted this, I purchase far fewer DVD's since I got Netflix than I did years ago. &nbsp;But, I'm willing to wait for movies to come out on DVD rather than watching them in the theater, so I'm willing to wait another month. &nbsp;I'm hoping the increased access to online streaming content is worth the trade.</p>

[wererich]

See? I wouldn't have known this unless I subscribed to your feed. This site rocks with information! Stinks that Netflix caved but as a business strategy, it's smart on WB's behalf. I do the Netflix thing too and am still willing to wait the 28 days.

[doogald]

My Netflix list is so large that a 28 day wait isn't going to affect me at all. It's a minor nuisance at worst.

[Chris Gohlke]

I'm still trying to find some details regarding what netflix got for on-line distribution. For example, if they got the ability to stream the entire WB catalog (with new releases after 28 days), then I'd call this a slam dunk win for Netflix.

[whydidnt]

In the end this will hurt Warner Brothers more than help. How many people, upon finding they can't get a new release via Netflix will find other ways to to watch the movie WITHOUT paying for it? I'm guessing they will bring themselves a whole new batch of torrent users with this foolish idea.

For those that say I don't mind waiting 28 days, you miss out on the social aspect of the movies that so many enjoy -
"Hey, I just rented The Hangover, did you see it?"
"No, Netflix doesn't have it yet."
"Really, that's weird, hey I know a guy that can tell you where to download it for free."
"Wow, that's great!!"

Unless people have a legitimate way to watch this movie WITHOUT buying it when released on DVD, they will turn to other, less savory ways of obtaining it. TOTAL FAIL for both Warner Brothers and Netflix!

[doogald]

I'm still trying to find some details regarding what netflix got for on-line distribution. For example, if they got the ability to stream the entire WB catalog (with new releases after 28 days), then I'd call this a slam dunk win for Netflix.

It's missing specific details, but, from MSNBC (http://www.msnbc.msn.com/id/34731701/ns/business-consumer_news/):

By acquiescing, Netflix will get a steep discount on Warner Bros.' discs — savings that the company intends to use to expand the selection of movies and TV shows available for instant viewing over the Internet.

Warner Bros. already has agreed to contribute hundreds of additional movies to that service — triple the current catalog. They will include many titles that have only been out on DVD for three to eight months.

The same article says that 30% of Netflix discs distributed are new releases, and that Netflix is hoping to use this agreement as a template for the other major studios in future negotiations. It sounds like we'll be seeing more news like this going forward. And it sounds like Netflix thinks that this is worthwhile in order to buff up their instant streaming catalog.

[Jason Dunn]

Seems like it's a calculated business move designed to lessen value in one area, and increase value in another. It's a risk though, because as someone pointed out in this thread, if a service doesn't offer a legitimate way for customers to get movies, customers will seek out illegitimate ways to get movies...