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Netflix Wants 50 Percent Discount Under Release Delay Scenario

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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.

Reports that at least Warner Bros. (NYSE: TWX) was trying to negotiate a rental window with Netflix first surfaced in mid-August.

5 Responses to “Netflix Wants 50 Percent Discount Under Release Delay Scenario”

  1. I own 100’s of DVD’s and usually buy them when they come out, however I pay and would like to see the content before paying for the DVD’s. Sorry Studio’s, won’t buy any more DVD now!

  2. If I waited until a movie came to DVD to see it, it didn't look good enough for me to see in theaters, so I probably wouldn't buy it anyway. Also, who looks at DVD release dates these days? I just go through the New Releases on Netflix every Sunday and add in anything new I want to see. I wouldn't even notice the 30 day delay!

  3. No, I won't buy DVDs even if they hold them back a month. I'd also agree that it will hurt the movie industry if they let Netflix buy them at a discount, because I am sure many people have gotten used to borrowing Netflix DVDs rather than building their own useless DVD libraries, and they won't bother to buy them either. If you are that anxious to view a movie, you'll see it in a theatre.