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Studios want release delay on new releases via Netflix

8 November 2009 23:56 by Andre "DVDBack23" Yoskowitz | 11 comments

According to sources speaking to VideoBusiness, Netflix has been discussing the possibility of accepting a one-month delay on new releases as long as the studios who want the delay will cut inventory costs by 50 percent.

The rental giant has been in quiet talks with Warner, Universal and Fox so far, and possibly other studios as well. Not one of the studios has accepted the price drop that Netflix needs to take the delays.

The studios have already imposed the delay on kiosk giant Redbox, which has led to lawsuits from both sides.

Netflix is more gung-ho about the idea as it will reduce costs for the company and consumers and Netflix COO Ted Sarandos even said they pitched the idea to the studios in 2007.

�Creating a rental window is not a punitive action,� says Sarandos. �It�s a decision that the retailers and studios can make together. If the studios can entice a rentailer to create a rental window, I believe that rentailers, studios and consumers can all benefit from it.�

Netflix makes about 70 percent of its revenue on catalog titles so the new release delay should not hit the bottom line significantly, especially if they are saving inventory costs on their main breadwinner.

Permalink to this article | Topic: Blu-ray

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Discuss this article!
KillerBug (Senior Member) 9 November 2009 0:33
That's fine by me...most of the new releases are terrible anyway...I can wait a month for the rest. [ + quote]
SomeBozo (Junior Member) 9 November 2009 1:18
*Originally posted by KillerBug:* That's fine by me...most of the new releases are terrible anyway...I can wait a month for the rest. Same here a month, two months or whatever, i don't care. Besides, not sure if other people have done what I do. I stopped going to the movie theaters altogether and simply watch movies at home. Only thing needed was stop watching movies in the theater for about 6 months or so, then i get the new release via netflix and watch everything in the comfort of your home, no more rude people with cell phones, or talkers or.... We all get the idea... Only thing i miss out on is the super sized HUGE screen, but hey using an entire wall in my basement is pretty darn big if you ask me, best comment from a friend while watching LOTR, "man this is better then a theater, i can actually feel the orcs..." [ + quote]
Tristan_2 (Junior Member) 9 November 2009 5:21
This is still messed up first Redbox now Netflix why this doesn't even make freakin sense and why now of all times is the fact that Blockbuster has movies like a weak or two early then the retailers yet the Studios don't complain to that but now Netflix? It doesn't make sense [ + quote]
gallagher (Member) 9 November 2009 7:58
don't worry, there will be special releases now just for Netflix and Kiosks . . . no more extras or special editions--only basic movie. *Quote:* Netflix is more gung-ho about the idea as it will reduce costs for the company and consumers and Netflix COO Ted Sarandos even said they pitched the idea to the studios in 2007. Don't hold your breath for the price to drop if Netflix gets the deal. [ + quote]
strykertc (Newbie) 9 November 2009 9:33
Well, for me I think it's bullcrap. Are they going to start doing it with music, too? Whats the difference? Theres still a CD that goes on a shelf in stores but yet consumers can go to any online music download site THAT DAY and get the release. I personally don't like it that I pay 9 dollars a month for online video rental (Netflix), but have to go to a rental store (Blockbuster) for a new release. ...maybe Im missing the point but, I think there's enough delay for new releases on Netflix. I highly doubt I will renew if I have to wait longer... [ + quote]
ZippyDSM (AfterDawn Addict) 9 November 2009 11:12
IMO deleying it only creates more problems.... They need to get films to bet film and other vendors when the film hits the theaters then release the better edited disc release when they get it to DVD,ect. [ + quote]
emugamer (Member) 9 November 2009 12:08
*Originally posted by ZippyDSM:* IMO deleying it only creates more problems.... They need to get films to bet film and other vendors when the film hits the theaters then release the better edited disc release when they get it to DVD,ect. I'd be thoroughly annoyed. I just joined up at $9.00/month. Unfortunately, the streaming service is extremely convenient for my family's needs, and it will be even better for us once we can get our hands on a PS3 netflix disc. So I'd have to live with it. [ + quote]
ZippyDSM (AfterDawn Addict) 9 November 2009 12:11
*Quote:* *Originally posted by ZippyDSM:* IMO deleying it only creates more problems.... They need to get films to bet film and other vendors when the film hits the theaters then release the better edited disc release when they get it to DVD,ect. I'd be thoroughly annoyed. I just joined up at $9.00/month. Unfortunately, the streaming service is extremely convenient for my family's needs, and it will be even better for us once we can get our hands on a PS3 netflix disc. So I'd have to live with it. that should ahve said net flix and other vendors >< bascily they should launch it per region in one go, even put it on disc ASAP then release a better edited obne later they will anyway,..... [ + quote]
skeil909 (Newbie) 9 November 2009 16:45
"Netflix is more gung-ho about the idea as it will reduce costs for the company and consumers" lol...consumers won't see a price reduction or be spared future price increases. [ + quote]
KillerBug (Senior Member) 10 November 2009 1:54
*Originally posted by strykertc:* Well, for me I think it's bullcrap. Are they going to start doing it with music, too? Whats the difference? Theres still a CD that goes on a shelf in stores but yet consumers can go to any online music download site THAT DAY and get the release. I personally don't like it that I pay 9 dollars a month for online video rental (Netflix), but have to go to a rental store (Blockbuster) for a new release. ...maybe Im missing the point but, I think there's enough delay for new releases on Netflix. I highly doubt I will renew if I have to wait longer... Yes, you are missing the point. The point of the delay is to get people like you to buy DVDs. They don't actualy want you to rent new releases, and they only give them to blockbuster because blockbuster sells the movie, and usualy runs out of the rental copies. Also, buying a new release online is a lot different than renting it. This is an ideal situation for a media company, as they can keep making money on a release, even after it sells out. One thing they seem to forget about this plan: New releases are readily available through torrent sites, darkweb, and other illicit means. If you want a DVD of a classic, it can be hard to find, but the latest blockbuster has 10 different versions available. If these titles are not available through streaming or even redbox, a lot of people will just say "screw the studio" and download it illigaly. [ + quote]
emugamer (Member) 10 November 2009 5:19
*Quote:* *Originally posted by strykertc:* Well, for me I think it's bullcrap. Are they going to start doing it with music, too? Whats the difference? Theres still a CD that goes on a shelf in stores but yet consumers can go to any online music download site THAT DAY and get the release. I personally don't like it that I pay 9 dollars a month for online video rental (Netflix), but have to go to a rental store (Blockbuster) for a new release. ...maybe Im missing the point but, I think there's enough delay for new releases on Netflix. I highly doubt I will renew if I have to wait longer... Yes, you are missing the point. The point of the delay is to get people like you to buy DVDs. They don't actualy want you to rent new releases, and they only give them to blockbuster because blockbuster sells the movie, and usualy runs out of the rental copies. Also, buying a new release online is a lot different than renting it. This is an ideal situation for a media company, as they can keep making money on a release, even after it sells out. One thing they seem to forget about this plan: New releases are readily available through torrent sites, darkweb, and other illicit means. If you want a DVD of a classic, it can be hard to find, but the latest blockbuster has 10 different versions available. If these titles are not available through streaming or even redbox, a lot of people will just say "screw the studio" and download it illigaly. Yeah, I won't be quitting Netflix, but I wil be tempted to revisit my illicit means. I thought Netflix would be the solution to draw me away from that. [ + quote]