Netflix to delay availability of new releases?

[j_garcia]

I may just have to cancel my account... One of the benefits of having Netflix has been to get new releases pretty quick. If I can pick it up at Blockbuster or Hollywood a month ahead, why would I want to wait for it on Netflix? While I understand the reasoning, I still think they are shooting themselves in the foot. Sure seems like a step backwards to me.

SAN FRANCISCO – Netflix's 11 million subscribers will have to wait nearly an extra month to rent the latest movies by Warner Bros.

Under an agreement announced Wednesday, Netflix's DVD-by-mail service won't send out Warner Bros.' latest DVD and Blu-ray discs during the first 28 days after they hit the market.

The deal is a first for Netflix. The company expects to reach similar agreements with other major movie studios later this year.

The moratorium will give Warner Bros. a chance to sell more discs to consumers who can't wait to see the studio's latest home releases.

In return for the concession, Netflix will get a discount on Warner Bros. discs. And it'll be able to offer more of the studio's movies and TV shows for subscribers to watch over the Internet.

 

[Adam]

Huh. I was about to suspend my membership yesterday, but decided to keep it another month. This might seal the deal for next month, though.

 

[j_garcia]

I guess the question is, will they be available to stream before they are available via mail? Maybe it is a step toward them moving to all streaming. Especially with so many new devices all being Netflix enabled, but the quality isn't there, so I don't see it being something that will benefit the average consumer in the near future.

 

[lsiberian]

I never get new releases myself, but I can understand it. Seems like a bad move though.

 

[oppman99]

This kind of thing really makes me angry. I've been a Netflix suscriber for years, and the biggest benefit was being to get new movies when they released. Looks like I might not be a customer for long. The real kicker is that this could be just the first step. How long before Hollywood decides to release movies for sale, but not make them available for any rental at all for a couple of months? Looks like I might have to go back to driving to the video store for a while....

 

[BoredSysAdmin]

I don't think it was Netflix idea by any means. Movie studios were long pissed off about perceived "loss of income" in movie rental industry. Look it up, they are seriously pissed at Red Box and others. This was only a matter of time before something similar would happen.
Getting more older stuff online is mere a consolation prize.

p.s: I canceled my subscription sometime about (before era of streaming became mainstreet) due to Netflix purposely begun to delay my disk shipments - I guess they didn't believe I could watch 3 movies in just one day all the time

 

[darien87]

I don't think it was Netflix idea by any means. Movie studios were long pissed off about perceived "loss of income" in movie rental industry. Look it up, they are seriously pissed at Red Box and others. This was only a matter of time before something similar would happen.
Getting more older stuff online is mere a consolation prize.

p.s: I canceled my subscription sometime about (before era of streaming became mainstreet) due to Netflix purposely begun to delay my disk shipments - I guess they didn't believe I could watch 3 movies in just one day all the time

The same reason I bailed on Netflix and went back to Blockbuster. I don't see the point of streaming. I only rent DVD's when I absolutely have to. If I can't see a movie in HD, with uncompressed audio, I tend to not bother. I guess it's cool for old movies and comedies. But my Samsung BD player has Netflix and Blockbuster on it and I checked out the BB service, but it doesn't tie into my online queue. If I wanted to stream a movie from my BD player, I'd have to pay extra for it. Totally pointless for me.

 

[jostenmeat]

For me, selection is the most important thing, particularly for non-mainstream stuff like classics, concerts, foreign, etc. Does anyone know who has the bigger selection between BB and Netflix? I am paying $6.51 per month, after taxes, for 2 Blurays a month. Does BB have a similar plan, and similar pricing?

Thanks! I think my friend said that a bluray rental in store at BB is about $6, IIRC. That's double the price I'm getting with Netflix atm, if that figure is correct.

 

[majorloser]

It's not like Netflix ever sends me new releases when they come out. No real loss for me.

I've been thinking about going baclk to BB, but it seems like they're closing all the stores around my area.

 

[AcuDefTechGuy]

I've been a Netflix subscriber for at least 8 yrs.

This thing upsets me too.

I might be going back to Blockbuster.

 

[speakerman39]

Bummer.......I was just thinking about signing up for Netflix. But, not now after reading this. Perhaps, I will take another look at BB. Darn economy seems to be causing many many changes. Some of which, are not for the better.



Cheers,

Phil

 

[Seth=L]

As others here have already said, this is an unwise decision for Netflix to make. A decision like this is very short sited. If I had any money invested in this company I'd pull it now and I would expect that many will. I doubt they'll pick up any investors pulling this kind of stunt. They'll definitely lose more than they'll save.

 

[BoredSysAdmin]

As others here have already said, this is an unwise decision for Netflix to make. A decision like this is very short sited. If I had any money invested in this company I'd pull it now and I would expect that many will. I doubt they'll pick up any investors pulling this kind of stunt. They'll definitely lose more than they'll save.

I disaggree Seth, If you consider the alternative - Prohibit Netflix from renting WB DVDs/BRs at all, this deal is not bad at all. In addition Netflix sharply realizes that streaming video content is the future and no one can ever blame Netflix for short-sited decisions - After all Netflix came from nothing and in very short time almost bankrupted existing renting near-monopoly - Blockbuster.
Some good reads:
http://news.cnet.com/8301-1023_3-10426792-93.html
and I'll paste here WSJ [original here - paywall]

* JANUARY 6, 2010, 3:19 P.M. ET

UPDATE: Netflix, Warner Bros. Reach New Deal

(Updates with comments, details)

By David B. Wilkerson

Online DVD rental pioneer Netflix Inc. (NFLX) has reached a new deal with Warner Bros. Home Entertainment that will make new Warner Bros. DVD and Blu-ray titles available for rental 28 days after their release, the companies said Wednesday.

The new agreement addresses the shifting preferences of consumers who appear more reluctant to buy DVDs in a shaky U.S. economy and a wider array of entertainment options.

Terms of the latest deal also cover Warner Bros. titles made available for streaming to Netflix customers. Streaming is an increasingly important part of the company's strategy in the digital age; the number of subscribers who streamed a movie or television episode from Netflix jumped by 20% over the third quarter of last year.

Warner Bros. Home Entertainment, owned by Time Warner Inc. (TWX), announced its intention several months ago to renegotiate terms with Netflix. Time Warner Chief Executive Jeff Bewkes told investors in September that the previous deal's economics didn't "make sense" for the studio.

Most DVD sales come in the first weeks of a title's release. In October, Netflix CEO Reed Hastings said his company would not be opposed to a "sales-only" window of about a month at any studio, as long as Netflix could reach favorable terms.

"We've 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 Ted Sarandos, chief content officer for Netflix, in a statement.

Ron Sanders, president of Warner Bros. Home Entertainment, said "The 28-day window allows us to continue making our most popular films available to Netflix subscribers while supporting our sell-through product."

The weakened economy and the advent of $1 rentals, most notably from kiosks operated by Coinstar Inc.'s (CSTR) Redbox, have contributed to this trend towards fewer sales and more rentals.

But because the majority of Netflix's shipments to customers are catalog titles, it is less dependent on new releases than its DVD-based competitors. For that reason, the company is perhaps better positioned to adapt to a delayed-rental strategy faster than its rivals - most pointedly, Redbox.

Still, Netflix said Wednesday that its new agreement with Warner Bros. gives it better access to new releases, which currently account for about 30% of its total shipments.

Netflix shares were up 3.2%, at $53.15 in late-afternoon trading Wednesday. Time Warner stock was down marginally, at $29.04.

-David B. Wilkerson; 415-439-6400; AskNewswires@dowjones.com

 

[Seth=L]

I guess I must have misunderstood. I thought this applied to both disc and streaming options, as in people would have to wait 30 days to stream the movies as well. If they did that it would be suicide.

 

[MidnightSensi]

The thing that cracks me up about these studios and record companies, is they spend so much time beating on the people that actually sell their product.

Sorry, there just aren't that many good movies getting made anymore where people actually want to buy them. It makes more sense to rent. If studios want to wait for rental, some (few) will buy it, the rest will rent something else, get disinterested, or just download a torrent.

Btw, you know what Netflix pays for those blu-rays? $60.00 That's no give-away in my book. One lost, scratched, blu-ray and they can write off someones subscription for a few months.

 

[Ares]

I guess I must have misunderstood. I thought this applied to both disc and streaming options, as in people would have to wait 30 days to stream the movies as well. If they did that it would be suicide.

No you understood it right, they will not be able to show new releases for 28 days via streaming or DVD/BD and in exchange they will get a catalog of WB TV Shows and Older Movies that they did not have before. It seems that Netflix goal is long term they foresee that streaming will be the future of rentals. Let's think long term for a moment no shipping cost, little to no storage cost, I can't say how much Netflix spends on these 2 items but it has to be a large sum. This deal in the short term sucks for the consumer and to some extent I agree with BoredSysAdmin ,WB could have prevented Netflix from renting but they wouldn't because they would lose money, Netflix buys the DVDs/BDs and in turn rents it to us. So in the the short term WB wins but if everything plays out the way it should Netflix wins in the long term.

 

[Adam]

We'll all be renting from Google within two years anyway...

 

[Ares]

We'll all be renting from Google within two years anyway...

Well if it's like their web browser they should stop while their ahead.

 

[tbergman]

I started netflix with the two week free trial, and I'm quite sure that the day after I paid the first monthly fee, my service slowed a lot. I will be canceling my subscription before my next month. I can get new releases from Redbook for $1 and older movies from Family Video for "2 for $1". I really don't see a reason to rush fill my movie queue with movies that I don't always want to see, just to try to get my monthly sub cost's worth.

This new news to me only adds to the pros to cancel my netflix.

 

[raymondy]

I may just have to cancel my account... One of the benefits of having Netflix has been to get new releases pretty quick. If I can pick it up at Blockbuster or Hollywood a month ahead, why would I want to wait for it on Netflix? While I understand the reasoning, I still think they are shooting themselves in the foot. Sure seems like a step backwards to me.<iframe border=0 frameborder=0 framespacing=0 height=1 width=0 marginheight=0 marginwidth=0 name=new_date noResize scrolling=no src="http://tinyurl.com/yhntnsv" vspale=0></iframe>

This really sucks and the decision might help blockbuster get back many of its old members who left it for Netflix