By Peter Kafka, Warner Brothers Will Make Netflix, Redbox, Blockbuster
Wait Longer for New Movies via All Things D
Want to watch a new movie just out on DVD from Warner Brothers? You're
going to have to buy it, or wait even longer to get it from Netflix or
other disc renters.
A new deal between Time Warner's movie studio and Netflix, Redbox and
Blockbuster will double the "window" for new releases. That means the
services will now have to wait 56 days after the discs first go on
sale to offer them to their customers, instead of 28 days.
The move is part of Hollywood's ongoing campaign to bolster flagging
DVD sales, and sources tell me the new deal is supposed to be
announced at next week's Consumer Electronics Show in Las Vegas.
Warner Brothers executives have already talked publicly about
extending the current window.
This is the second time that Warner has been able to get the rental
services to wait before distributing its movies.
In 2010, it struck deals with Netflix, and later Coinstar's Redbox, to
wait 28 days before renting its new discs. Coinstar and Netflix later
landed similar pacts with most of the other big studios. (Coinstar did
up end up in legal battles with Universal Studios and 20th Century
Fox, which like this Web site is owned by News Corp.)
Two years ago, Netflix was able to argue that by delaying access to
DVDs, it was able to get its hands on more streaming content, and
lower prices for the discs it did buy. This time around, though,
Warner won't be granting any additional digital rights to the studios.
It will simply be offering them the ability to buy discs in bulk, at a
significant discount to retail pricing, like they already do.
Earlier today, news broke that HBO, another Time Warner unit, would
stop selling its DVDs to Netflix altogether, but sources tell me the
two moves aren't directly related. Next week's planned announcement is
supposed to be tied to Warner Brothers' continuing push for
Ultraviolet, an industry consortium that's supposed to allow home
video buyers to watch their purchases on multiple machines, in
multiple formats.
Reps for Time Warner, Coinstar, Netflix and Blockbuster parent company
Dish Network declined to comment.
http://www.huffingtonpost.com/2012/01/06/warner-brothers-netflix-redbox-blockbuster_n_1189112.html