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Thread: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

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    Default Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    http://www.latimes.com/business/la-f...,2346654.story


    Reporting from Los Angeles and Las Vegas - On Wednesday evening, Mike Chauvet opened a red envelope from Netflix and popped "The Hangover" into his DVD player.

    "I try to get most of the movies I watch through Netflix," said the 30-year-old physician, who lives in Queens, N.Y.

    Now he's going to have to wait for the privilege.

    Warner Bros. has struck a deal with Netflix Inc. whereby the fast-growing DVD subscription firm won't offer the studio's movies until 28 days after they go on sale. Had the deal been in effect last month, "The Hangover," which went on sale Dec. 15, wouldn't be available on Netflix until Jan. 14.

    It's part of a strategy by several studios to create staggered releases of DVDs so that the most profitable transactions are available first and cheaper rental options take effect further down the road. The move could be copied by other studios, forcing consumers to wait nearly a month if they want to rent popular movies from Netflix.

    "Within the home entertainment category, we're creating different times at which a product is available at different prices," said Kevin Tsujihara, Warner Bros.' home entertainment president.

    The studio is hoping that the four-week window will push consumers interested in watching movies at home to buy the DVDs or pay a premium to rent them from stores like Blockbuster or from Internet and cable video-on-demand services. Warner Bros. already imposes a 28-day window on $1-a-night kiosk firm Redbox.

    Although Warner's unilateral move against Redbox has led to a court battle, Netflix agreed to the 28-day window in exchange for improved financial terms and more content for its Internet streaming service.

    DVD sales declined 13.7% last year, and some studios have fingered Redbox and Netflix as primary culprits. Despite their fast growth, Redbox and Netflix rentals generate comparatively smaller profits for studios.

    Other studios besides Warner have privately expressed similar concerns about Netflix, which has more than 11 million subscribers. 20th Century Fox and Universal Pictures, in a possible signal of their intentions toward Netflix, have already restricted the availability of their DVDs to Redbox.

    The new Netflix deal terms represent a bet by both sides that consumers will be willing to spend about $20 to buy what they want right away or otherwise wait nearly a month to get it as part of their subscription.

    "This deal uniquely works for Netflix because our subscribers are desensitized to street dates and more interested in being matched to the perfect movie," said Ted Sarandos, Netflix's chief content officer, who handles studio relationships. "Some subscribers will so passionately want to see it in the first 28 days they may go out and buy it, just as some people want to see 'Avatar' so badly they pay to watch it in 3-D."

    Under the complex renewal terms finally worked out, Netflix agreed to the 28-day delay in exchange for a more favorable percentage of rental revenue from Warner Bros. discs. Netflix will use the savings to expand its stock of the studio's DVDs and triple the number of Warner catalog titles it provides through its online streaming option.

    Sarandos said that Internet streaming is a key growth area for Netflix and that he hoped other studios would follow Warner's lead.

    "There are all different levels of interest," he said. "Future deals will depend on timing and other studios' appetites to make a bet on that window."
    I am NOT happy about this at all.

    The only way I will not be totally pissed off is if the system changes and if in the future you can just download a movie instantly from your TV at home (for say $15) for one time watching

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    It kind of stinks...

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by vapacersfan View Post
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    The only way I will not be totally pissed off is if the system changes and if in the future you can just download a movie instantly from your TV at home (for say $15) for one time watching
    If I'm paying $15 for a movie, I sure as hell better be able to watch it more than once.

    Any besides, that's available now. It's called Zune. You can either rent or buy a movie from Zune using your Xbox 360. If you rent it you can eitehr stream the movie and watch it once, or you can download the movie on to your hard drive and watch the movie once within a 24hr time period.

    If you buy the movie, it will download to your harddrive, and you are able to watch it as many times as you like.

    You have options of renting/buying regular or high def versions.

    The renting option is pretty pricey. They use the Microsoft points and it comes out to be about $6 for a rental, but only around $15 for a purchase, IIRC.

    EDIT: And to get back on the main topic, THAT'S BULL****!!!!! In the end the consumer always gets screwed. This is why I have no problems illegally downloading music, nor watching pirated films.

    It might not be morally right, but I don't think it's morally right to sell a CD that costs 15cents to make for $15-$20 bucks either. Lower the prices to a realistic level, and stop doing crap like this, then we can talk.
    Last edited by Since86; 01-07-2010 at 02:36 PM.

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    Jimmy did what Jimmy did Bball's Avatar
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    I'm really surprised Netflix rolled over for this.
    WB must've wielded a large hammer....
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Bball View Post
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    I'm really surprised Netflix rolled over for this.
    WB must've wielded a large hammer....
    Why not....WB killed off HD DVD with the same big hammer.
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by RWB View Post
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    Why not....WB killed off HD DVD with the same big hammer.
    That's what I was thinking...
    Nuntius was right. I was wrong. Frank Vogel has retained his job.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Since86 View Post
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    If I'm paying $15 for a movie, I sure as hell better be able to watch it more than once.

    Any besides, that's available now. It's called Zune. You can either rent or buy a movie from Zune using your Xbox 360. If you rent it you can eitehr stream the movie and watch it once, or you can download the movie on to your hard drive and watch the movie once within a 24hr time period.

    If you buy the movie, it will download to your harddrive, and you are able to watch it as many times as you like.

    You have options of renting/buying regular or high def versions.

    The renting option is pretty pricey. They use the Microsoft points and it comes out to be about $6 for a rental, but only around $15 for a purchase, IIRC.

    EDIT: And to get back on the main topic, THAT'S BULL****!!!!! In the end the consumer always gets screwed. This is why I have no problems illegally downloading music, nor watching pirated films.

    It might not be morally right, but I don't think it's morally right to sell a CD that costs 15cents to make for $15-$20 bucks either. Lower the prices to a realistic level, and stop doing crap like this, then we can talk.
    I just gave a sample price, I promise when I rule the world I wont charge that much

    I just set up XBOX Live today and I saw zune, but I do not understand Microsoft points. Thank you for clearing up a little bit of that.

    I do think it will be interesting to see if we can still d/l the movie via netflix on PS3 or Xbox, or if you still have to wait the 28 days even to stream the movie.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Bball View Post
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    I'm really surprised Netflix rolled over for this.
    WB must've wielded a large hammer....
    I agree.

    Does this mean blockbuster rental service has the upper hand as you do not have to wait 28 days?

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    So how many more people are going to buy or rent movies now? Not many. How many people are going to illegally download more movies now? Many.

    Way to go WB. You just shot yourself in the foot.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by CluelessSuits
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    "Within the home entertainment category, we're creating different times at which a product is available at different prices," said Kevin Tsujihara, Warner Bros.' home entertainment president.
    Translation: "We're fairly certain this whole 'give the customer what they want' thing is just a fad."
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Well, it's cool that they're gonna have more movies available to stream. I don't mind this whole thing, I'm one of those people who actually like going to the video store.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Since86 View Post
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    EDIT: And to get back on the main topic, THAT'S BULL****!!!!! In the end the consumer always gets screwed. This is why I have no problems illegally downloading music, nor watching pirated films.

    It might not be morally right, but I don't think it's morally right to sell a CD that costs 15cents to make for $15-$20 bucks either. Lower the prices to a realistic level, and stop doing crap like this, then we can talk.
    Seriously? You aren't buying a 15cent CD. You are buying the content that is stored on it.

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    Quote Originally Posted by graphic-er View Post
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    Seriously? You aren't buying a 15cent CD. You are buying the content that is stored on it.
    When I bought the Lord of the Rings soundtracks, the CDs with the music cost more than the DVDs with the entire movie. That's just goofy.

    Spending $15-$20 on an album that has maybe 3 or 4 good songs is stupid.
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    One thing I did hear talked about the other night.

    Wouldn't it really suck if you had all of your movies on a hard drive and then *bam* your whole hard drive gets wiped out.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Won't the future eventually be buying "licenses" for audio and video?

    That way you earn access to downloading it whenever you need it/want it. Say I buy a license for The Dark Knight for $20, and that allows me to acquire it from (in this case) Warner Bros. in HD picture/sound if I like, or a mobile copy for my iPhone, or SD for a regular TV, whatever else. It would also grant me the accompanying special features to watch should I choose to do so.

    Hard drive crashes? No problem. Your license is on record within their database (and if you're smart you've kept some kind of receipt) and you are allowed to quickly download it again.

    Same with audio (books, music, comedy, whatever).

    The key is figuring out the licensing so that my scenario is applicable. If you can store it without having to freak out if there's hardware failure, I think it'll take off eventually.

    Heck, if/when Internet speeds increase enough, you might even see a point where you don't even download anything anymore. You just "snatch it" on the fly whenever you want to watch/listen to something immediately.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Hicks View Post
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    Won't the future eventually be buying "licenses" for audio and video?

    That way you earn access to downloading it whenever you need it/want it. Say I buy a license for The Dark Knight for $20, and that allows me to acquire it from (in this case) Warner Bros. in HD picture/sound if I like, or a mobile copy for my iPhone, or SD for a regular TV, whatever else. It would also grant me the accompanying special features to watch should I choose to do so.
    Hypothetically, sure. Except the studios hate this idea. They all want to ban format-shifting, so that you're forced to buy (and re-buy) the same material for every outlet you own.

    It's reasonable, from their perspective. In the past, new formats were always a bonanza because people had to re-buy all of their music. My dad, for example, owns the same album in three different (purchased for full retail price) formats.

    There's also a problem if the company goes out of business or shifts their servers. See, for example, the Walmart MP3 debacle.

    Heck, if/when Internet speeds increase enough, you might even see a point where you don't even download anything anymore. You just "snatch it" on the fly whenever you want to watch/listen to something immediately.
    Yeah, this is pretty likely, I think. I already use Pandora on the go pretty regularly... once things like GrooveShark make it to iPhone/Android then it's game over.
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by vapacersfan View Post
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    One thing I did hear talked about the other night.

    Wouldn't it really suck if you had all of your movies on a hard drive and then *bam* your whole hard drive gets wiped out.
    Yep. That's why the Good Lord invented RAID-1.
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Anthem View Post
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    Yep. That's why the Good Lord invented RAID-1.
    What is RAID-1?

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by vapacersfan View Post
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    What is RAID-1?
    http://www.lmgtfy.com/?q=raid-1
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    Junior Member The Toxic Avenger's Avatar
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    yeah... I'm just not upset at all... Granted I'm the type of person who rarely will go see a new release in theaters unless I'm really excited about it or someone I'm with wants to see it. And of the movies that I've WANTED to go see I own about 95% of them... LOTR, iRobot, Mr. and Mrs. Smith, Stranger than Fiction, etc.

    In another thread regarding Netflix streaming several posters made comments about the lack of variety/availability. Why does no one like this compromise?

    Do you always expect to get something for nothing?

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by The Toxic Avenger View Post
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    yeah... I'm just not upset at all... Granted I'm the type of person who rarely will go see a new release in theaters unless I'm really excited about it or someone I'm with wants to see it. And of the movies that I've WANTED to go see I own about 95% of them... LOTR, iRobot, Mr. and Mrs. Smith, Stranger than Fiction, etc.

    In another thread regarding Netflix streaming several posters made comments about the lack of variety/availability. Why does no one like this compromise?

    Do you always expect to get something for nothing?
    The majority of Netflix subscribers IMHO signed up to Netflix, at least in part, to be able to get new DVD releases in their mailbox when a movie is first available on DVD... instead of stopping in the rental store and seeing an empty slot where that movie has already been rented out. And even if Netflix was currently showing the movie as unavailable you'd be able to wait and get it as soon as it became available without doing anything but checking your mailbox, not make fruitless trips to your video rental store.

    The local video store always had the advantage of giving you an option to drop in and get SOME movie at a moment's notice.

    As for streaming... not everyone has that capability... Plus bandwidth caps and limits means even some that DO have the highspeed internet are limited in how much they could use the service.

    Netflix IMHO rolled over and gave away one of their strengths and selling points. Netflix just became a little less valuable to me.... maybe a lot less valuable...

    I bet I am far from alone...
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Bball View Post
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    The majority of Netflix subscribers IMHO signed up to Netflix, at least in part, to be able to get new DVD releases in their mailbox when a movie is first available on DVD... instead of stopping in the rental store and seeing an empty slot where that movie has already been rented out. And even if Netflix was currently showing the movie as unavailable you'd be able to wait and get it as soon as it became available without doing anything but checking your mailbox, not make fruitless trips to your video rental store.

    The local video store always had the advantage of giving you an option to drop in and get SOME movie at a moment's notice.

    As for streaming... not everyone has that capability... Plus bandwidth caps and limits means even some that DO have the highspeed internet are limited in how much they could use the service.

    Netflix IMHO rolled over and gave away one of their strengths and selling points. Netflix just became a little less valuable to me.... maybe a lot less valuable...

    I bet I am far from alone...
    I'm usually with you BBall, but this just screams "I'm lazy, and that's why I'm upset, I might actually have to ... *scoff* .... walk into a video rental store".

    Is our society really that lazy that the idea of going out of your way for a few minutes is something to really raise a stink about?

    -- Steve --

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Pacersfan46 View Post
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    I'm usually with you BBall, but this just screams "I'm lazy, and that's why I'm upset, I might actually have to ... *scoff* .... walk into a video rental store".

    Is our society really that lazy that the idea of going out of your way for a few minutes is something to really raise a stink about?

    -- Steve --

    That misses my point. Those of us who use Netflix pay a set fee each month to do so. Even if I haven't popped a DVD in the player in 6 weeks I've still paid Netflix. If I wanted to watch a Netflix DVD return it, and then get a new release, that was something that payment always enabled me to do. Now it doesn't. Therefore, there's less value in Netflix than there was before.

    I'm on satellite internet so no streaming movies for me so that adds no value to the package for me (and it wasn't available when I signed up anyway).

    Plus, your argument ignores the issue of the video store being out of the title that I mentioned.

    So... call it laziness... call it too tight to buy every new release I might like to see... Call it what you want...
    When I started with Netflix my money bought me something it no longer does...
    Nuntius was right. I was wrong. Frank Vogel has retained his job.

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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Quote Originally Posted by Anthem View Post
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    Even with the sarcasm, I still do not understand it.

    So what, you have to buy two hard drives and it saves information on both hard drives? So what if both hard drives get wiped out?

    Or does it make multiple copies on the same disk? Either way, what happens if the whole thing gets wiped out?

    Yeah, physical disks get scratched but at least you do not loose every movie in your library.

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    Junior Member The Toxic Avenger's Avatar
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    Default Re: Netflix and Warner Bros. Strikes deal! Must wait 28 days for new releases

    Bball's situation seems to be legitimate... I know I wouldn't use Netflix if they didn't stream instant movies.

    Anyone else? Someone who uses Netflix streaming video...

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