Variety has very interesting story (Netflix Adds its Own Pix to the Mix) about how Netflix is starting to flex their muscles in the movie biz, despite being a fraction of the size of Blockbuster:
But Netflix also has used its leverage to pressure distributors. Haggling over terms has become common; several suppliers say that in fits of pique they have halted sales to the vidvid rental company in the hope that Netflix blinks first. (It usually doesn't.)
Meanwhile, studio execs worry privately that a gargantuan rental player could give rise to a number of problems. The real DVD margins lie in sales, and Netflix, they believe, cuts into those sales by making rentals so easy.
To the chagrin of exhibs, Netflix could also become a cudgel in the battle to collapse the distribution window. "We want to continue getting the message out that a long window isn't just bad for Netflix, it's bad for the studios," says Netflix chief content officer Ted Sarandos.
You can read the rest of the story here.
Thanks to Joe for sending this in.