Thursday, January 07, 2010

Warner Brothers denies DVDs to NetFlix until 28 days from Release

NetFlixNetFlix has been a major success story for DVDs. While services like Blockbuster have withered and died, NetFlix has continued to grow and thrive by giving customers what they want - convenient DVD rentals and streaming video. And they did so without violating the property rights of the movie studios, or strengthening illegal downloaders or pirates in general. So how are the studios rewarding them? Warner Brothers is denying them DVDs until 28 days after release. The idea is that this will force consumers to buy DVDs that they otherwise would rent once from NetFlix.

The reality? This will drive more consumers to illegal download sites, and older movies. And will decrease the pressure to buy movies that otherwise would have stayed a long time in queue. Brilliant move, Warner Brothers.

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