Netflix Signs Deal With Warner Bros. to Wait 28 Days for New Releases

As expected, Netflix has signed a deal with Warner Bros. to wait 28 days after the DVD release to offer new releases. In return Netflix will get a discount on Warner DVDs and access to Warner movies and TV shows for streaming. Netflix is expected to sign similar deals with the other major studios, effectively creating a new DVD rental window.

From the press release:

“We’ve been discussing new approaches with Warner Bros. for some time now and believe we’ve come up with a creative solution that is a ‘win-win’ all around,” said Ted Sarandos, chief content officer for Netflix. “We’re able to help an important business partner meet its objectives while improving service levels for our members by acquiring substantially more units than in the past after a relatively short sell-through window. At the same time, we’re able to extend the range of choices available to be streamed to our members.”

The agreement covering DVD and Blu-ray provides a means for Warner Bros. to continue to directly supply Netflix with new titles while establishing a schedule that allows Warner Bros. to get the most from the sales potential of those titles (75 percent of sell-through occurs in the first four weeks) and maximize VOD usage. Netflix benefits from reduced product costs and better availability of new releases. New releases from all suppliers account for about 30 percent of Netflix shipments.

It'll be interesting to see if Blockbuster and Redbox sign similar deals.

What do you think of the new DVD rental window?

Thanks to Gowan & Doron for sending this in.

Comments

[Everyperson]

That will be the end of my contract with Netflix. Blu-Ray titles can't be streamed and therefore a month wait to get the disk from Netflix(not including the usual one+ month) is a disaster.

The entire idea of Netflix is to see the current movies ASAP.

[Tino]

No, you are confused.

The entire idea of a movie theater is to see the current movies ASAP.

The idea of Netflix is to give you a great selection of movies that show up automatically at your house.

[ryry]

I will likely cancel my netflix when this starts to affect me. Honestly My local rental store offers blurays for $3 a rental and I can always get them the day they are released. Ive only used netflix because it turns out slightly cheaper in the long run. Ive been in a queue for inglorious basterds and district 9 for nearly a month now and they both still say very long wait. So im gonna have to start waiting a month to start my 2 month countdown? 3 months to see a movie? No way dude

[Jayson Collard]

Hello Blockbuster

[dAVe]

Blockbuster already has the one distinctive attribute over Netflix: No extra charge for Blu-rays!

Blockbuster is my only source for HD goodness since I opted out of the NetFlix bs-access-fee.

[Bob]

I have been a subscriber for two years. I never go to the movie theater, so I mainly use Netflix as a cost efficient way of catching new releaes.

I recently got a Blu Ray player with Nexflix streaming capability. I have found it is impossible to get Blu Ray new releases(regardless of studio) on or close to the release day. I have four movies in the top of my queue that have remained there for a month.

This news from Warner Bros. is troubling. I have mixed feelings after reading the comments here.

I love the streaming ability of my new player, but why pay nearly $20 a month when I can't get new releases.

I am considering changing my Netflix to a streaming only account, and then I can pick up newly released Blu Ray discs at my convenience from my local BlockBuster.

[LV]

If netflix either drops the "blu-ray" charge or buys more discs to lower waiting time, then I am ok with this.

Otherwise, it stinks. I don't know why the studios think this will make me go buy a disc. That's the last thing I would do.

[Matt]

I like to know when this additional streaming will start?

[Michael H]

I don't think it's a good deal for Netflix because now they can't tag on Studio's ad campaigns to carry certain big titles. It's an impulse business, so it might end up hurting Netflix, especially if other rental competitors do not need to wait for 28 days, which is a life time for new releases. I think it would have been wise for Netflix to be able to negotiate some exceptions on certain titles that everyone will want to see. This way, they can attract customers when they're most likely to sign up for membership. I don't think they're in danger of losing customers like me who has 300+ titles on the Q but this deal might make some impatient customers leave and lose on opportunities to sign up new customers...

[Josh]

wow...

to everyone who said they were leaving... Go!

More streaming is good...

for you babies I will move all my "x wait" titles out of the top 5 for a while. Merry X-mass...

Netflix did not raise prices when it bought new equipment to ensure dvds were shipped clean/undamaged from each distro point nor did it raise prices when it went to 6 days of shipping...

I get DVDs faster and cleaner now then when i signed up and there are streaming titles for the middle time...

I am fine with the deal as stated... When the Wii streams I will be happy with the deal.

[BP]

WWAAAAAHHH THINGS CHANGE OOOOH NOOOOOO!!!!

[Nick]

Most of the people happy with this are the people that stream with NetFlix more than anything else, and have purchased the Roku. However, I'd like to know how large a percentage these people make up of the total NetFlix customers. For everyone else, this is a hassle.

[edward]

it's only a good deal for the consumers,if for the 28 days we get to view them streaming on-line.the win-win they are talking is for wb and netflix.not us!but i don't think wb or netflix really care.

[scJohn]

The devil is always in the details. NetFlix has about 55 distribution centers. So exactly how many more copies per center of a WB movie is NetFlix committed to purchasing. Will this include additional BD copies. Nothing stated in press release.

Will this additional streaming catalog include wide screen or just the 4:3 version? How about 5.1 instead of just stereo? How long does the movie have to be in DVD release before streaming (1 year, 2 year, 3 year)? Again nothing in the press release.

Now that WB has gotten NetFlix to do things their way, the gate is open and the other studios are now banging on NF's door.

It's going to take at least 6 months to see how this all shakes out. But one thing is certain, NF will never be streaming new releases as along as they stick to their all you can eat model. The only way the studios will allow NF to stream new releases is on some kind of a pay per view basis. I just don't think NF is interested in that kind of model.

Heh. Just means I have to rent movies from my in store Blockbuster. I really only use Netflix for rare stuff anyway.

[kevin]

not a good thing. I like have the media in hand. there is still to mnay issues with streaming.
I can watch the dvd on any tv in house.
No network hickups.
Full 5.1 encoded.
Extra features.

I am banner warner from my que till this stops.

[twitter.com/cymen]

I'm fine with this too. In fact, more than fine. If Netflix can get more content to stream out of the deal with small delays of new material and get a better price it's a win for me. That leaves more money to make sure they stick around or to license more content.

[Colin Gebhart]

This is GREAT! I'm a year behind watching new releases, so it won't affect me. The cost savings will give Netflix less pressure to raise rates, and I'll get more streaming titles to watch on that sweet box of love known as ROKU.

Let those crazy people buy movies for the first 4 weeks and finance the movie studio bigwig's lavish lifestyle. I'll get more of what I want for no extra cost. What's not to love?

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