Warner Bros. Forces 56-Day Holdback Window For Netflix

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News Posted: Sun, Jan 15 2012 8:23 PM
Ouch. We knew the movie studios didn't like Netflix very much, but this is just brutal. In the viewpoint of the movie studios, they want people to go out and buy new DVD and Blu-ray releases. A rental provides only a fraction of the profit that an outright purchase would, but with $1 Redbox rentals and unlimited Netflix streaming for just a few bucks per month, why buy? There's hardly a good justification any more. But now, those who are impatient may find themselves buying more than renting. Warner Bros. Home Entertainment Group has just forced Netflix to wait 56 days to receive new release and made-for-video titles on DVD and Blu-ray Disc. That's up from the prior 28 day window that used to exist. Yeah, yikes.

Both companies are putting some spin on this, but let's be clear here: this is Warner Bros. taking a serious blow to Netflix's allure. Greed pays, we guess.

Warner Bros. Home Entertainment to Make New Release DVD and Blu-ray Titles Available for Rental Only After 56-Day Sales-Only Window

LAS VEGAS, Jan. 10, 2012 /PRNewswire/ -- Warner Bros. Home Entertainment Group and Netflix, Inc. (Nasdaq: NFLX) today announced a new agreement that will extend the current 28-day sales-only window to 56 days for Theatrical New Release and made-for-video titles on DVD and Blu-ray Disc.

"Since we implemented a 28-day window for subscription and kiosk, we have seen very positive results with regard to our sell-through business," said Mark Horak, president, Warner Home Video North America. "One of the key initiatives for Warner Bros. is to improve the value of ownership for the consumer and the extension of the rental window – along with our support of UltraViolet – is an important piece of that strategy."

Warner Bros. is balancing its home entertainment revenue streams by creating different times at which a product is available at different prices. A staggered schedule allows the Studio to maximize the sales potential of its theatrical new release titles and VOD offerings.

"Netflix wants to ensure members have continued secure access to Warner Bros. DVDs and Blu-ray discs and, as such, is accepting the 56 day holdback," said Netflix Vice President of Content Anna Lee.

The new agreement was announced at the annual Consumer Electronics Show in Las Vegas, Nev. in conjunction with an annual event held by the Digital Entertainment Group.
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sera replied on Mon, Jan 16 2012 8:16 AM

Netflix sent me an email inviting me to rejoin with a free one month membership, proceeded to charge me for that month and then refused to reverse the charge on my credit card. Their customer service people were no help. A classic bait and switch. How the mighty have fallen...

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RTietjens replied on Mon, Jan 16 2012 12:30 PM

I understand. Warner Brothers wants me to torrent their movies instead of renting them.

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RTietjens replied on Mon, Jan 16 2012 12:32 PM

@ Sera - Print the email, mail it and a request to chargeback that month to your credit card company. A chargeback costs the merchant $35 (above and beyond whatever the reversed charge might have been).

Send the mail Certified, Return Receipt Requested. Personally, I'd send a copy to Netflix via regular mail, as well, along with a termination of service letter informing them that they are no longer in a business relationship with you due to fraud.

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Manduh replied on Mon, Jan 16 2012 2:53 PM

It could be worse, they could just remove their shows/movies from Netflix altogether. Hopefully they don't.

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AKwyn replied on Mon, Jan 16 2012 6:39 PM

I don't know what the movie companies reason for doing this is. I mean Netflix has existed for years and movie studios didn't complain much, now they're taking content away? It can be attributed to internet streaming problems but it just doesn't make much sense, especially considering that there are tons of ways in which internet streaming could work, and it has been proven time and before. So why is it that these movie studios don't want to embrace streaming? Why do they remain firm in having us pay full price for a DVD or a digital copy on iTunes? Why don't they want us to rent?

 

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One more reason to say  "NO" to S.O.P.A

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CChouinard replied on Tue, Jan 24 2012 10:18 AM

To tell you the truth, I do not like Netflix at all. I had them before & when you are a member for there movie picks for watching on your TV, you can not get the new movies to watch on your TV. So I cancled my membership with them. I think they would get more members if they had there new releases to be seen on your TV.  

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well,that's understandable not to let you see new movies  O_O or they will be taking away some other business and get in trouble,or alot of people will not longer go to the theater(which is  bad for the movie company and the theaters).....What i don't like is that you have to order movies(for free) but i won't just wait  for them to mail me a movie O_O....

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