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Netflix CFO Sees No Future for Amazon Rentals
Dave H. writes "In comments made at the Morgan Stanley Small Cap conference last week, Netflix CFO Barry McCarthy says he doesn't think Amazon.com will expand its video rental market into the US because the retailer's infrastructure wouldn't work to its advantage with video rentals. He also sees the window between theatrical and DVD releases shortening, which is a Good Thing." From the article: "The price of entry is much higher now than it was in the past, both in terms of the cost of locating warehouses and just the mere fact that Netflix and Blockbuster are both considerably larger now. McCarthy then said that Amazon is in the classic make-versus-buy dilemma, noting that the company can either start from scratch or try to acquire service through either an acquisition or partnership." Update 6/20: Barry McCarthy's position at Netflix corrected.
I feel like the time between theatre and DVD has shortened signifigantly already thanks to the quality of the films. There is an interrelationship between these two things. How long did it take National Treasure to go to dvd? a week? two?
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The availability of movies online will certainly reduce the window between theatrical and home video. Currently distributers make a lot of money by keeping that window there, but others are exploiting that window to make significant amounts money for themselves. There are lots of businesses that are supporting their business models with free content. We have already seen the progrssion to more global release windows as a result. Unless online piracy can be stopped (which is unlikely), the only things studios can do is move up the DVD release dates.
Yeah, but it would most likely take extra time to be inspected at customs, then there is the issue of having a fleet of planes going 24x7 and the fuel costs etc etc.
Some things are still cheaper to handle locally.
If I mail a DVD to netflix on monday I get a new DVD wensday. Try having that turnaround time when using an out of state facility, let alone an out of country one.
"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe." --Albert Einstein
Blockbuster needs to work out a deal w/ the MPAA to burn DVDs at their stores. This way you have access to the entire catalog of thousands of DVDs immediately. You'd still have to return the DVD which they'd use as inventory so they weren't burning a copy each time, only if they were out of stock. They'd also need to add kiosks for burning DVDs and use the current stores for renting video games, buying entertainment focused magazines and books, junk food, and providing movie catalogs with information about the all the movies in their catalog.
I had a Blockbuster pass that allowed me to rent two movies from my local store for as long as wanted, and I could return them and get two more. I canceled it b/c I rented everyting I wanted to see (and several movies that really REALLY sucked) and the new releases didn't make it worth my money to keep the pass. If I would have had immediate access to TV Shows on DVD (past and present... I like The Shield and The Twilight Zone), more independant and foreign films, and classic films and guides or reviews to help me find a movie I might like to watch I'd still have my pass and would keep it for quite a long time.