Warner Bros. new releases to stay off Netflix for 28 days

Demiurge

This isn't 'new' to some of you, but I hadn't heard anyone talk about it here. I have long since stopped going out and just buying movies since more often than not many aren't worth owning. Will you be less likely to use services like Netflix after this or is it no big deal to wait another month?

Warner Bros. new releases to stay off Netflix for 28 days

January 6, 2010 | 11:29 am


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.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/01/warner-bros-new-releases-to-stay-off-netflix-for-28-days.html

Rivrrat

I'm fine with that, I didn't sign up with Netflix to get the latest greatest the day it's released anywy. If it's really that important to me, I'll head to the video store and rent the movie.

VR3

Maybe if DVDs and Blu Rays were not 20 and 30 bucks Id buy more...

DUH

grimmace19

trying to think of good movies from WB lately that this would have had some sort of effect on me....

Demiurge

Vr3MxStyler2k3 wrote: »

Maybe if DVDs and Blu Rays were not 20 and 30 bucks Id buy more...

DUH

Besides so many ho hum titles, that's a big reason I stopped buying them. I have saved so much money, too. Honestly there's a lot a regret sitting in my rack of 400+ DVDs. Probably only 1/4 of them I watch with any regularity.

I get completely why they're doing this, but I'm not really sure it's going to work for them. I'd rather see some higher quality product worth buying than watching them try to siphon cash out of impatient people.

Much to the chagrin of the movie studios this will have no effect on my movie purchasing habits. It's really just a minor annoyance.

BlueFox wrote: »

When a movie is released I add it to my Netflix queue, unless it is worth buying. Since I have over 200 movies in my queue it will take 2-3 years before it bubbles up to the top. So, a 28 day delay is meaningless.

How often do you watch movies? I have a larger queue than that, including movies that won't be out until 2011, and Netflix has been 'throttling' me for over 2 years. (Yes it's real, I called them and it's in their TOS)

Basically if there's ever a span that you watch what they consider 'too many' movies they'll withhold DVD/Blu-Ray discs artificially, especially new releases.

Lately I watch about 3-4 movies per week in the winter and maybe 1-2 in the summer. I don't watch much TV at all, so that's a big source of entertainment.

heiney9

Won't bother me one bit as I rarely watch a movie from Netflix the instant it's avail as a new release.

H9

Knucklehead

Ive been using our local Redbox machine for new releases. I have 400+ DVD's that keep me busy as far as looking for something to throw in during down time. David

bobman1235

Well, unlike everyone else, it does bother me. I do like to have new releases when they come out, at least ones I've been looking forward to. I don't go to the theater ever so there are some movies I'm very anxious to see, and waiting an extra month, while not the biggest deal, is annoying. Just recently, "The Box" and "The Informant!" were released on DVD, two movies I had been looking forward to watching, and Netflix won't have them for another couple of weeks thanks to this arrangement.

As others have hinted at, there are other reasons that DVD sales are flagging, I don't think this will help a lick.

gelinas

It bothers me as well. I think of it this way: It already takes over a month for me to get new popular releases from netflix as they sit at the top of my Q in "long wait" status for so long. So this will just make the wait times longer.

Disc Jockey

It bothers me. It will be harder to get new releases with Blockbuster with all the users switching over. :mad: If they do it to BB too, it won't affect me. I will still wait for them to come out, I just don't buy movies very often anyway.

Ron-P

Works for me.

I dropped Netflix because they absolutely SUCK when it comes to new Blu-ray releases. I will gladly pay more so I can walk into a Blockbuster on new release Tuesday and rent it that day.

bobman1235

Ron-P wrote: »

I will gladly pay more so I can walk into a Blockbuster on new release Tuesday and rent it that day.

I will guarantee you that Warner is going to go after Redbox and Blockbuster next. Netflix is just number one.

Disc Jockey

BlueFox wrote: »

You link basically is saying Netflix does not throttle. They were sued over that a few years ago. As one of the posters said, it more likely it is the post-office.

They still throttle, they're just up front about it now. It's in their terms of service and you have to agree to it when you sign up with Netflix.

dkg999

Of course the answer is always to have the customer pay more! I think the movies studios need to realign their cost structure with today's market. I'm not paying $30 per BD so a bunch of actors and studio execs can make mega-salaries. I think they are attacking the symptoms of the problem, not the core problem.

Sami

Don't bother me, and I will not be buying more either. If the studios aren't making enough profit, cut down some of the salaries first.

Demiurge

BlueFox wrote: »

2-3 a week, including the ones I buy, both movies and TV shows on DVD. Then there are the repeat DVD viewings. 3 movies a week is 150 a year. Other than Caprica, and hockey games, I do not watch ' regular' TV. One point, for rentals I stay with DVD, for purchase I buy BR.

You link basically is saying Netflix does not throttle. They were sued over that a few years ago. As one of the posters said, it more likely it is the post-office.

Generally speaking, I return a DVD and get an email the next from Netflix saying they have received the movie, and a day or so later, the new movie does show up.

If I want to see a movie bad enough I pre-order it on Amazon and get it a few days after release. Otherwise, it sits in the Netflix queue.

I'll share my personal experience.

My father and I live in the same town and he rarely ever has to wait for a movie. A while back we tested out the theory of throttling several times. There was a new release sitting in my queue for over 3 months with 'very long wait' on it. He added the same movie and it was sent out to him that day. We did this with several movies and always had the same result.

He watches maybe 1 movie a week.

I called Netflix to complain about it and after not accepting their repeated scripted responses they finally broke down and pointed out the clause in their TOS.

Someone who watches too many moves in a month loses preference to those who don't watch as many. It's that simple. I don't really have a complaint about that, because it makes sense from a business perspective. The problem is that it isn't really unlimited monthly rentals subject to availability. They purposely give preference to those who watch less and hide that fact in the fine print.

Still, the best service out there for this, IMO.

Here's a snap of my queue (not including all of the saved DVDs)

Demiurge

bobman1235 wrote: »

I will guarantee you that Warner is going to go after Redbox and Blockbuster next. Netflix is just number one.

They already did go after Redbox.

Demiurge

Here's the info, Bob:

Redbox agrees to 28-day delay in offering Warner movies
The deal ends a six-month legal battle after Warner tried to impose such terms on the discount movie rental firm in August. The concession raises the possibility of similar pacts with other studios.

February 17, 2010|By Ben Fritz

In a big win for the studio and a major step in the ongoing transformation of the home entertainment market, Redbox has agreed not to offer Warner Bros. movies through its $1-per-night kiosks until 28 days after they go on sale.

The deal marks an end to a six-month legal battle after Warner tried to impose such terms on the discount movie rental company last August. Tuesday's concession opens up the possibility that Redbox will strike similar agreements with Universal Pictures and 20th Century Fox, which it also is challenging in court.

http://articles.latimes.com/2010/feb/17/business/la-fi-ct-redbox17-2010feb17

bobman1235

Looks like Blockbuster somehow managed to keep their agreement with Warner Bros., so they still get DVDs on the release date instead of being delayed like Netflix and RedBox. Annoying.

network23

Demiurge wrote: »

I have long since stopped going out and just buying movies since more often than not many aren't worth owning.

Amen to that. I waited 40 years for another Casablanca caliber movie; Blade Runner and then another 12 years for Pulp Fiction and then another 5 for the Matrix. So what's another 28 days?

AGUERRA

Vr3MxStyler2k3 wrote: »

Maybe if DVDs and Blu Rays were not 20 and 30 bucks Id buy more...

DUH

+1 i wait till i see a sale or something. unless its a must have but those are far and few in between

JPSmario

Considering how long I wait for the DVD to come out after the theater release, 28 more days is nothing. If I had to see a movie that badly, I would have seen it in the theater already. As for their DVD sales, I'm not going to buy a movie until I see it and then its rare that I find something I want to see over and over, anyway.

I have been throttled in the past, but I don't watch that much anymore; I'm listening to SDA's:D And I don't care if I never see the inside of a video store again; no more wasted time driving twice for a movie and no more late charges:p