Warner Bros. strikes 'deal' with Netflix. New Releases withheld from Netflix for 28 days
21 replies, posted
[quote= LA Times]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.[/quote]
Source: [url]http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/01/warner-bros-new-releases-to-stay-off-netflix-for-28-days.html[/url]
Could this be a sign of the movie industry's downfall? Who knows.
Warner Bros: Proof they're crap comes from my ISP.
But, almost a month really isn't that long in my opinion.
Fucking lame
More corporate bullshit to pinch every penny out of hard working families. No wonder we are in a recession with all these fuck tards running the economy.
So now Warner Bros. is going to lose 28 days of profit for every movie they release because people will just be pirating them.
[QUOTE=Zeke129;19471794]So now Warner Bros. is going to lose 28 days of profit for every movie they release because people will just be pirating them.[/QUOTE]
From the way I see it, there's various forms of obtaining a movie.
Buy It
Rent It
Borrow It
Steal It
Bootleg It
Pirate It
[sp]Technologic[/sp] V:v:V
[QUOTE=Musicfreak59;19471850]From the way I see it, there's various forms of obtaining a movie.
Buy It
Rent It
Borrow It
Steal It
Bootleg It
Pirate It
[sp]Technologic[/sp] V:v:V[/QUOTE]
The last four are illegal. (Your friends aren't licensed to rent movies out so they technically can't lend them to you, and watching it at their house is a "public performance", also illegal)
So Warner Bros. has just halved the number of legitimate ways to view their movies for an entire month.
How much does the producer get out of a Netflix DVD?
It'll only get out of hand for Netflix when someone else puts their hand up and does the same thing.
[QUOTE=Musicfreak59;19471850]From the way I see it, there's various forms of obtaining a movie.
Buy It
Rent It
Borrow It
Steal It
Bootleg It
Pirate It
[sp]Technologic[/sp] V:v:V[/QUOTE]
[b] Say what bitch?[/b]
[img]http://idolator.com/wp-content/uploads/2009/07/daft-punk.png[/img]
[QUOTE=cheeseman52;19471756]More corporate bullshit to pinch every penny out of hard working families. No wonder we are in a recession with all these fuck tards running the economy.[/QUOTE]
Are you for real?
[QUOTE=Rygar69;19471998][b] Say what bitch?[/b]
[img]http://idolator.com/wp-content/uploads/2009/07/daft-punk.png[/img][/QUOTE]
OMG! Please don't kill me! :worship:
[QUOTE=Zeke129;19471903]The last four are illegal. (Your friends aren't licensed to rent movies out so they technically can't lend them to you, and watching it at their house is a "public performance", also illegal)
So Warner Bros. has just halved the number of legitimate ways to view their movies for an entire month.[/QUOTE]
oh no
people doing something illegal
[QUOTE=Brian Williams;19473095]oh no
people doing something illegal[/QUOTE]
Read my post again. I said that Warner halved the number of [b]legitimate[/b] ways to watch their movies.
[QUOTE=Rygar69;19471998][B] Say what bitch?[/B]
[IMG]http://idolator.com/wp-content/uploads/2009/07/daft-punk.png[/IMG][/QUOTE]
i can see the eiffel tower and the camera dude
Maybe the reason the bottom line has moved so much lower is because people don't want to pay 30 fucking dollars for some shit movie... I know I certainly don't want to.
They release a zombie movie... But 28 days later.
[IMG]http://undeathmatch.files.wordpress.com/2009/10/28_days_later.jpg[/IMG]
[b]OH MY GOD WE'RE DOOMED[/b]
Fuck Netflix I don't care about it because it's not available in Canada. :c
people use Netflix?
I frequent our local Redbox quite a bit. It's a nice little service to get movies.
They'll just encourage more people to say "fuck it" and pirate their movies. Everybody can see movie prices have gone batshit insane, and now the studios are actively trying to suppress any and all cheaper or more convenient ways of watching their swill.
28 days later...
[IMG]http://www.best-horror-movies.com/image-files/28-days-later-empty-street-small.jpg[/IMG]
also this is pretty stupid. They're just gonna get more people pirating.
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