Thursday, January 7, 2010

Netflix Bends To Warner Bros., Won't Rent DVDs For 28 Days After They Go On Sale

Netflix Bends To Warner Bros., Won't Rent DVDs For 28 Days After They Go On Sale

Dan Frommer

This will please the movie industry: Netflix has agreed to a 28-day window before it rents Warner Bros. DVDs and Blu-ray discs after they go on sale. The idea is that this will allow Warner Bros. to sell more discs, which is more lucrative than rentals.

According to the announcement, 75% of DVD sellthrough occurs in the first four weeks of sales, so that's what the movie companies are hoping to boost.

How much will it hurt Netflix?

Maybe only a little, because Netflix does not rely on new releases as much as movie stores like Blockbuster and kiosks like Redbox. But it's still probably not a direction that Netflix boss Reed Hastings is crazy about.

No comments:

Post a Comment