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.