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Netflix Wants 50 Percent Discount Under Release Delay Plan

Posted on 11/11/09 at 10:43 am
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 11/11/09 at 10:43 am
Netflix Wants 50 Percent Discount Under Release Delay Scenario

quote:

The studios have put the screws to Redbox and Netflix (NSDQ: NFLX) in order to get them to take new releases at a later date. Redbox has sued all many of the big studios—but Netflix is taking a different tack. During the company’s most recent earnings call, Netflix CEO Reed Hastings acknowledged the impact that cheap rentals were having on DVD sales and said that “if we can agree on low enough pricing for delayed rental, it could potentially increase profits for everyone.” Now, Video Business cites sources who say that the discount Netflix wants is as much as fifty percent—something that the studios haven’t agreed to.

The article portrays Netflix as very willing to acquiesce to a release window—something that was also very apparent in Hastings’ remarks. Indeed, Hastings said that he thought some sort of arrangement could be worked out within a year, in part because his service was less dependent on new releases than its rivals.



Essentially, studios want to make movies available for sale a month before they are available for rental. Does this bother you?

Other than the minor inconvenience of having to wait another month to see a movie, it doesn't really bother me. I'm not the type of movie consumer that "absolutely has to see a movie ASAP." I rarely go to the theater and have no problem with waiting for movies to be available for rental....one more month isn't going to bother me. It definitely won't cause me to buy any more DVD's, which is what the studios are hoping for.
This post was edited on 11/11/09 at 10:49 am
Posted by Fewer Kilometers
Baton Rouge
Member since Dec 2007
37925 posts
Posted on 11/11/09 at 10:47 am to
I only buy movies that I want to buy. I'll wait a year to rent if I have to.
Posted by Ignignokt
Member since Dec 2005
3475 posts
Posted on 11/11/09 at 10:49 am to
I can definitely wait a month longer to rent.
Posted by Freauxzen
Washington
Member since Feb 2006
38438 posts
Posted on 11/11/09 at 10:52 am to
If I could "buy" a movie and have access to it anytime, anywhere, in HD, the studios would get my money.

Until then, I buy the few I want to buy. "Find" the movies that are either of questionable quality or were never available to me in the theaters, and rent very few.

I haven't jumped on Netflix yet, but I probably will soon.
Posted by CAD703X
Liberty Island
Member since Jul 2008
91602 posts
Posted on 11/11/09 at 10:54 am to
quote:

Essentially, studios want to make movies available for sale a month before they are available for rental. Does this bother you?


wiki, we already have this. the release schedule goes something like this:

- BIG SCREEN (and torrents lol)
- dollar theater
- hotel ppv
- cable ppv
- dvd
- netflix/online

i could care less..there's more on netflix now than i could watch in my lifetime so i dont pay attention to release dates on 'dvd' at all anymore.

if i want to watch something before its on dvd..trust me i will
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 11/11/09 at 11:00 am to
quote:

if i want to watch something before its on dvd..trust me i will


Posted by constant cough
Lafayette
Member since Jun 2007
44788 posts
Posted on 11/11/09 at 11:01 am to
quote:

Essentially, studios want to make movies available for sale a month before they are available for rental. Does this bother you?




Not at all. I'm usually like a year or two behind catching up on new releases anyway.
Posted by Uncle Stu
#AlbinoLivesMatter
Member since Aug 2004
33847 posts
Posted on 11/11/09 at 11:10 am to
<-------------torrents


they can do whatever they want
Posted by CAD703X
Liberty Island
Member since Jul 2008
91602 posts
Posted on 11/11/09 at 11:13 am to
quote:

Uncle Stu

bah, this online stuff will never take off. bluray will put it in its grave.

(paging godfather)
Posted by Antonio Moss
The South
Member since Mar 2006
49097 posts
Posted on 11/11/09 at 11:21 am to
Doesn't bother me, but I can certainly understand Netflix's frustration.
Posted by cag1984
Member since Aug 2008
422 posts
Posted on 11/11/09 at 11:31 am to
I just won't pay attention to the date that the DVD is available for purchase. I'll just pay attention to the rental date. It will be like nothing changed.

If it's a good movie that I've seen or I know I want to purchase, then I'll pay attention to that date. No big deal to me.
Posted by shelbytiger
Member since Sep 2008
79 posts
Posted on 11/11/09 at 11:50 am to
Would this affect TV shows on DVD?
Posted by CAD703X
Liberty Island
Member since Jul 2008
91602 posts
Posted on 11/11/09 at 11:51 am to
quote:

Would this affect TV shows on DVD?

good question..i think that's a little different animal since the networks (and hulu) put that stuff online almost as soon as it actually airs.
Posted by shelbytiger
Member since Sep 2008
79 posts
Posted on 11/11/09 at 11:54 am to
And this is the only situation I can see where pushing back the rental date would increase DVD sales.

Right now I am waiting on Lost season 5 to come out on DVD so I can watch season 6 when it airs. If the rental date was pushed where I couldn't watch them before the new season started, I could understand buying the DVD.

For movies, I can't see how this would help.
Posted by BilJ
Member since Sep 2003
162126 posts
Posted on 11/11/09 at 1:59 pm to
quote:

I just won't pay attention to the date that the DVD is available for purchase. I'll just pay attention to the rental date. It will be like nothing changed.


pretty much. If people don't want to buy the movie making them wait an extra month won't change that.
Posted by CAD703X
Liberty Island
Member since Jul 2008
91602 posts
Posted on 11/11/09 at 2:18 pm to
quote:

Right now I am waiting on Lost season 5 to come out on DVD so I can watch season 6 when it airs. If the rental date was pushed where I couldn't watch them before the new season started, I could understand buying the DVD.


dude..i'm with you..i'm just about done with season 4 and i'm sniffing around for season 5 somewhere. i'm hoping its online at abc.com or somewhere in HD.

i've gotten spoiled..just went through the first 4 seasons of LOST in HD on netflix online in like a week..my eyes are bleeding now
Posted by MSTiger33
Member since Oct 2007
21460 posts
Posted on 11/11/09 at 2:36 pm to
Or watch them free online
Posted by SPEEDY
2005 Tiger Smack Poster of the Year
Member since Dec 2003
87137 posts
Posted on 11/11/09 at 5:44 pm to
quote:

i'm hoping its online at abc.com or somewhere in HD.




I know it is online at both abc.com and hulu
Posted by TigerMyth36
River Ridge
Member since Nov 2005
41050 posts
Posted on 11/11/09 at 6:14 pm to
This is the epitome of stupidity from the studios. They still don't understand internet piracy.

They still don't understand the 100% of teens today watch and download movies from the net.

They seem to think people will storm the stores the second a movie comes out, if people can't rent it. Er... no. DO they forget the dvd window used to be much longer.

All they will do is end up losing money to people that will watch online instead of waiting a month to rent on netflix.

I just don't see this having any positive outcome for them. And as you can see in the article, Netflix wants a substantial discount on the movies once they can rent them.

In the end, with piracy and lower revenue from rentals, this idea seems almost if not more ridiculous than they Jay Leno Experiment.
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