http://www.latimes.com/business/la-fi-ct-netflix7-2010jan07,0,2346654.story

Quote :

"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. As plummeting DVD sales have shrunk the bottom line of studios in recent years, they have focused on Redbox and Netflix, the two fastest-growing segments of the home entertainment market, out of concern that they are drawing consumers away from purchases. Redbox and Netflix rentals generate the smallest profit margins for studios of any home entertainment transaction, and Blu-ray and DVD purchases are the most profitable. "The 28-day window allows us to continue making our most popular films available to Netflix subscribers while supporting our sell-through product," Warner Home Video President Ron Sanders said in a statement. "We have been discussing new approaches with Warner Bros. for some time now and believe we've come up with a creative solution that is a 'win-win' all around," said Netflix chief content officer Ted Sarandos, who handles studio relations. Warner Bros. first said it wanted to change its relationship with Netflix in August, at the same time that it imposed the 28-day window on Redbox and its smaller kiosk competitors. Other studios have privately expressed similar concerns recently about Netflix, which has more than 11 million subscribers. It's likely that some or all will follow Warner Bros.' lead and strike similar agreements soon. 20th Century Fox and Universal Pictures are the most likely candidates, as they have imposed windows on Redbox. The new deal means that for the first four weeks after Warner Bros. movies are released on DVD, consumers will be able to only purchase them, download them them through Internet or cable video-on-demand services, or rent them at retail stores like Blockbuster. Video-on-demand and retail rentals are more profitable for studios than Netflix and Redbox, though it remains to be seen whether Warner will look to impose a window on Blockbuster Inc. and its competitors as well."

As if they don't already make enough money.

1/7/2010 12:38:24 PM

i really hope this increases piracy

1/7/2010 12:39:02 PM

If you see a DVD for sale

Warn a brother.

1/7/2010 12:39:16 PM

hahaha these guys are complete morons.

Hmmm yes, if we make it so people cant get the movie the way they want surely they will pay extra to do it the way we want them to.

1/7/2010 12:40:26 PM

^^^that's the truth, cause if I can't get it on netflix when it comes out i'll just download the dvd online instead.

[Edited on January 7, 2010 at 12:40 PM. Reason : ]

1/7/2010 12:40:28 PM

<3 my blockbuster

1/7/2010 12:47:14 PM

blockbuster stock just rose

1/7/2010 12:51:59 PM

A "'win-win' all around" for everyone except your customers.

1/7/2010 12:55:01 PM

REDBOX

1/7/2010 12:56:15 PM

i typically pirate the low quality version and see if its worth the DVD first anyway

1/7/2010 12:57:14 PM

My girlfriend's father designed the foam packaging that the Redbox centers are shipped in. True story.

1/7/2010 12:58:44 PM

Quote :

"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."

excellent.

1/7/2010 12:59:29 PM

but you're god, i thought you would have designed pretty much everything

1/7/2010 12:59:46 PM

Quote :

"A "'win-win' all around" for everyone except your customers."

QFT

1/7/2010 1:28:57 PM

Quote :

"that's the truth, cause if I can't get it on netflix when it comes out i'll just download the dvd online instead."

1/7/2010 1:32:38 PM

Quote :

"if we make it so people cant get the movie the way they want surely they will pay extra to do it the way we want them to."

Haha

1/7/2010 1:55:53 PM

Quote :

"increased access to content for its online streaming service."

sweet

1/7/2010 2:11:13 PM