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Netflix Will Delay Renting New WB Releases

DesertBlade tips the news that Netflix will delay renting new releases from Warner Brothers for 28 days, and adds "Luckily I am so far behind in my movie watching that I will probably never catch up anyway." "It's part of a strategy by several studios to create staggered releases of DVDs so that the most profitable transactions are available first and cheaper rental options take effect further down the road. The move could be copied by other studios, forcing consumers to wait nearly a month if they want to rent popular movies from Netflix. ... The studio is hoping that the four-week window will push consumers interested in watching movies at home to buy the DVDs or pay a premium to rent them from stores like Blockbuster or from Internet and cable video-on-demand services. Warner Bros. already imposes a 28-day window on $1-a-night kiosk firm Redbox."

19 of 418 comments (clear)

  1. What a great idea! by Pojut · · Score: 5, Insightful

    Artifically deny your customer the ability to buy your product. They'll love you for it!

    Feh.

    1. Re:What a great idea! by NFN_NLN · · Score: 5, Insightful

      "The studio is hoping that the four-week window will push consumers interested in watching movies at home to... pirate the movie instead."

    2. Re:What a great idea! by Moryath · · Score: 5, Insightful

      Yeah. They used to wait over a year before you could even get the VHS... and we hated the hell out of that.

      Artificial scarcity doesn't work. Period. If only they could learn this.

    3. Re:What a great idea! by Anonymusing · · Score: 5, Insightful

      On the plus side: "Netflix will use the savings to expand its stock of the studio's DVDs and triple the number of Warner catalog titles it provides through its online streaming option."

      In other words, you won't have to wait for the DVD so much -- you'll be able to watch it on your computer. Certainly, the newest releases won't be available that way, but still... anything that expands the (legal) streaming movies options is a good thing.

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    4. Re:What a great idea! by jgtg32a · · Score: 4, Insightful

      Netflix agreed to this because they are getting a discount on their DVD purchases and letting them cut costs.
       
      Netflix also doesn't have the same business model that BlockBuster has I pay $x a month and I get unlimited rentals, the less I use the service the better it is for Netflix.
       
      WB's research shows that a majority of their sales take place in the first 4 weeks. I assume that they did an analysis and found out that the discount that they give to Netflix will be outweighed by the additional sales.
       
      Netflix has no risk in this deal, actually they may even have a bit to gain, they only buy a limited number of each movie. If one of Netflix's customers buys a movie because they were too impatient to wait for it to appear on Netflix; Netflix now has slightly better customer approval because there will be slightly less of a wait time on some of the new releases.

    5. Re:What a great idea! by lgw · · Score: 4, Insightful

      That's simply wrong. With the exception of "phonorecords", if you buy a DVD, book, video tape, etc, you can rent or give it to others, no special license needed. Copyright law still makes at least a little sense in some areas.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    6. Re:What a great idea! by zindorsky · · Score: 4, Insightful

      Artificial scarcity doesn't work. Period.

      I don't know ... seems to work pretty well for the diamond industry.

      --
      If the geiger counter does not click, the coffee, she is not thick.
    7. Re:What a great idea! by ByTor-2112 · · Score: 5, Insightful

      That's because there are more vaginas involved in the application of diamond products than pirated movies.

    8. Re:What a great idea! by nine-times · · Score: 4, Insightful

      Agreed. I know that lots of people around here are probably keeping up on all the latest and greatest sources for pirated movies and TV shows, but for most people, it's simply too much of a hassle. I sincerely think that movie studios and TV networks need to learn that ultimately most people aren't really willing to pay for "content". Rather, people are willing to pay for convenient, easy, and reliable access to that content. If they make it as more of a hassle to get the content legally as it is to get it illegally, and too expensive to boot, then they'll lose out on that revenue. I don't say this as someone who approves of pirating, but sometimes it doesn't do you much good to disapprove of reality.

      But anyway, I'm just not sure it matters. I don't even know when DVDs are released most of the time. I only know when Netflix tells me that the DVDs will be available. Move that date forward a month, and I probably won't notice.

    9. Re:What a great idea! by Darkness404 · · Score: 4, Insightful

      And I assume you go to the movies once a year?

      Not only are there those issues, but the fact that every single refreshment costs five times as much as it would at a store for no more convenience or taste. I mean, I don't mind paying $3 for a really good burger because there isn't a way I could cook it that way and it would turn out that good. Sure, I might be able to make a burger that costs $.50 but I'd still have to make it and it wouldn't taste as good. With popcorn it takes what? 2 minutes in the microwave (less time than you would be waiting in line) and costs five times less. Same with drinks, I can get a 2 liter of soda for $1 or so, it costs more for a small drink at the theater.

      If I'm paying $15 per person to enjoy a movie (ticket+popcorn/drink), it better be high quality enjoyment. That means A) Very high definition B) Great sound system C) People actually acting decently. Because, really the masses have determined a view of a movie in standard to be worth $1 for a family (look at how successful Redbox is), plus with a DVD you can pause, rewind, skip through boring parts, etc. that you can't in the theater. But instead when you pay $5 per person for a ticket you get generally pretty low quality, a sound system that is only focused on being LOUD, terrible people, terrible options for refreshments, and when you have to pee midway through the movie there is no way you can get them to pause/rewind it for you.

      No wonder piracy/rentals have taken up the way they have.

      --
      Taxation is legalized theft, no more, no less.
    10. Re:What a great idea! by rahvin112 · · Score: 4, Insightful

      Exactly! You know what RedBox did? Rather than buying from the studio in bulk DVD's in sleeve's for a very slight discount they are buying all their movies at walmart retail then having an employee go through and pull the DVD's out a the boxes and stick them in a sleeve. This hasn't stopped Redbox and won't. Netflix agreed to comply so they can get the license to stream the movies digitally because they are making more money on the streaming than the rentals.

      All this is going to do is make RedBox more powerful and give them a bigger market share. This is very foolish of the studio's because Netflix is more on their side then RedBox is.

  2. I'll just wait longer... by SOOPRcow · · Score: 5, Insightful

    If I really want the movie on dvd I'm gonna buy it anyway. If I was just gonna rent it when it comes out on dvd what makes you think I'll want to buy it instead of waiting 28 extra days? Or at worse one could always pirate it since I'm sure there will be dvd rips on the net. Anyway, this isn't all bad... more streaming stuff :)

    1. Re:I'll just wait longer... by bit9 · · Score: 5, Insightful

      Mod parent up.

      I don't know anybody (myself included) who actually keeps track of DVD release dates, much less counts down in anticipation of a DVD being released. Pretty much every movie that I rent from Netflix is something that I've decided I don't mind waiting for, and apart from the 2-3 movies down at the bottom of my Netflix queue that say "Releases mm/dd/yyyy", I literally never have any idea when a given movie is/was/will be released on DVD.

      Okay, so maybe not everybody is like me in this respect. Maybe there are hordes of people who will now be thinking to themselves "Damn! I just can't wait another month! I guess I'll have to buy that DVD after all." But I just don't see it happening that way. I don't know anybody who thinks that way. I do know a couple DVD junkies who seem to think they just have to own every movie ever made on DVD, but this isn't going to change their habits anyway.

  3. Re:They are betting that their customers won't car by MWoody · · Score: 4, Insightful

    How is it a hassle? It IS a delay, but as Netflix is the only place I use to check new releases, it's one I admittedly won't notice. In return, we'll get way more instant-watch movies available, which I don't have to wait for and can watch on my laptop or two of the three consoles in the house.

    It's hardly an anti-customer strategy when they make the same choice I'd have asked them to, given the option. The only thing currently stopping Instant-Watch from being really awesome is its subpar selection. And really, if I cared about seeing the movies from Netflix soon after they came out, I'd have seen them in theaters.

  4. Re:They are betting that their customers won't car by businessnerd · · Score: 4, Insightful

    It might be risky, but I think his assessment of the average Netflix customer is fairly accurate. At least is describes me, a Netflix customer, accurately. Typically, when you hear of a movie coming out that you want to see, you add it to the queue. It's not out yet, but once it is sitting at the top of the queue ready once it becomes available. Except that movie is in high demand, so it says "Long wait" next to it. The second movie in the queue comes instead. But you don't really care, because you still want to see that movie. It's not like I'm a seven year old that has to see THAT one NOW! It will come when it's ready. In the mean time, I have a long list of movies that I have already said I want to see that will ship in its place until it is my turn. At a certain point, you stop paying attention to what's next, and you just accept what arrives in the mail. Any movie that I really really want to see, I would have already seen in the theaters. Avatar was a good example. Wanted to see badly and also appreciated the big screen experience.

    The thing that bothers me a little is how Netflix is being prioritized by the studios due to the fact that they are cheap. The article mentions the same with the RedBoxes. Both are far cheaper for the consumer than in-store rentals or on-demand from Cable/Satelite and they get the worst priority. It's as if the studios resent those customers for finding a great bargain and want to take out their anger on them. But again, if seeing that movie right away is that important, you can pay the premium to do so.

    --
    "It's not whether you win or lose, it's how drunk you get." -- H. J. Simpson
  5. Just Say No to revenue by Sloppy · · Score: 4, Insightful

    The studio is hoping that the four-week window will push consumers interested in watching movies at home to..

    ..check the torrent sites.

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    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  6. Re:28 days later by DaveGod · · Score: 5, Insightful

    is anyone really that hell-bent on getting a movie that they'd rather pirate it than wait 28 days?

    That's movie-studio thinking. And yeah, on the face of it, it does make sense - break the law, commit a morally wrong act for the sake of 28 days?

    But that forgets what movies have become. Torrents being free is only half of it - the other half is service. Piracy is fiercely competitive on service: they are quire remarkable in getting whatever you want, however you want, as quickly as they possibly can. The studios have taken some steps towards competing: cinema releases are increasingly worldwide and DVD releases have a shorter delay. But they're not really close - it's like the big airlines trying to do the low-cost airline thing, they just don't have the mentality for it.

    It's why some people pirate despite having their cinema card, a Netflix sub and shelves of store-bought movies. It's not that they aren't prepared to pay, it's just piracy is the better service. Sure, plenty of pirates are doing it just because it's free, but there's a big chunk of people with a range of different reasons. Each step the studios take towards competing with piracy is a chunk of people for whom paying becomes their better choice. Each step away from competing with piracy, like delaying Netflix for 28 days, a bunch of people turn on the torrents. Many will actually be annoyed about not being able to get what they want by paying for it.

    I'm not trying to defend pirates, I've never illegally downloaded a movie in my life (though I'll not pretend to having never watched any). But there's what's right and there's what is. Quite basic market forces.

  7. Re:28 days later by EastCoastSurfer · · Score: 4, Insightful

    It's why some people pirate despite having their cinema card, a Netflix sub and shelves of store-bought movies. It's not that they aren't prepared to pay, it's just piracy is the better service. Sure, plenty of pirates are doing it just because it's free, but there's a big chunk of people with a range of different reasons. Each step the studios take towards competing with piracy is a chunk of people for whom paying becomes their better choice. Each step away from competing with piracy, like delaying Netflix for 28 days, a bunch of people turn on the torrents. Many will actually be annoyed about not being able to get what they want by paying for it.

    Bingo. I wanted to watch Inglorious Bastards. So, I head off to Netflix and it's not on streaming and the DVD is on wait. Lets ignore for a moment that we live in time where we shouldn't need physical media AT ALL in order to rent something (or even buy for that matter). Next I go to the xbox movie section and I see IB. I think good, I can rent it here. Nope, it's only for purchase and it's only SD. I'm trying my hardest to give someone money to rent their content and they won't let me! At some point more and more people are going to say f' it and just go straight to TPB. The hassle of finding it to rent just isn't worth it when I can find and download it in minutes.

    BTW, I think the music companies have started to learn this lesson, even if they were pulled along kicking and screaming. Look at Amazon and ITMS now. No DRM, Amazon has a great changing selection of $5 albums, and both make it easy to find whatever you are looking for and purchase for a fairly reasonable price. Why can't movies follow suit?

  8. Re:Awesome job! by ColdWetDog · · Score: 4, Insightful

    I'm getting closer..... Just rented Pineapple Express from Netflix. Pop it in the player and wonder of wonders, ten minutes of stupid shit Sony adverts. No way to get around them.

    Pop it out of the player, pop it into the Mac, copy and rip the files to the hard drive, pick out the movie and copy it to a fresh DVD. Nice clean movie. Still a bit of a pain and getting closer to just downloading it from a torrent site.

    Keep going Sony. Nice work. Alienate even more people. You do this enough and folks that shy away from torrent sites because of legal concerns or moral concerns will find that paying you less and less gets a better product. Amazing.

    --
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