Yesterday, Netflix announced a new deal with Warner Brothers in which customers will have to wait 28 days before being able to watch new releases, NPR reports. So far it’s just one studio, but it’s pretty much a given that Netflix will make similar deals with the other studios.
Why would they do this? Rentals don’t make the studios very much money. They’re hoping that anyone dying to see new releases will shell out the money to buy the DVD (which, naturally, are much more expensive when they’re brand new) or pay to stream them online. I think Netflix also realizes that the business of shipping DVDs to mailboxes won’t last forever, and they’re beefing up their online streaming catalog, as well as their straight-to-your-TV option.
If you’re a Netflix customer, are you upset about the new deal? Personally, I’m okay with it. I have such a long list of movies and TV shows in my queue that I rarely watch new releases right when they come out anyway. Plus, I’ve used Netflix’s streaming option a couple times, and I like it. Plus, I’m glad that Netflix is figuring out how to adapt their business with the changing technology instead of being stubborn and reactionary (ahem, music industry).
As for the studios, I’m doubtful that this new deal will boost ever-declining DVD sales. Still, people are absolutely still going to movie theaters on the weekends (ahem, Avatar and New Moon). When it comes to movie budgets, the studios just can’t count on future DVD sales to make up for costs anymore.
Not a question of it “coming back to bite them.” This was not a deal desired by Netflix necessarily – it was pursued aggressively by the studios who are feeling burned by dropping DVD sales.
Who will ultimately suffer over this? WARNER BROTHERS, who simply wants to squeeze consumers into buying $24.95 DVDs. Newsflash: nobody wants to do that anymore. What it will do is drive more young people to bit torrent sites and piracy will grow and thrive.
Netfix will simply beef up its streaming service. More new HDTVs and Blu-Ray machines come equipped with direct access to the Netflix streaming service, so this will truly become the new way or renting movies.
I also have over 90 movies on my Netflix Instant-to-watch list, and I know how i can wait. Plus my Blue-Ray rentals are a long list as well. But this seems like such a backwards agreement from the movie studios to keep everyone stuck on the old way of selling movies. They seem unable to adapt to ever changing technology. They will keep suffering, unless they find ways to change, because if there is something the internet has shown us, is that this new generation knows how to get around their system very well.
My netflix queue has 165 movies on it. I can wait
I don’t have a source on this, it’s just rumor, but I heard the tradeoff is a lot more streaming content will be available on the watch instantly section from WB. Which for me, makes me happy. I watch FAR more streaming than I do new releases so if this is the case – awesome! I totally approve!