Warner Bros Gets Tough With Blockbuster Over Rental Window

[Bruce]

Special treatment? Nope, just what they negotiated for. Unless you want to characterize Netflix's acquisition of additional streaming rights in exchange for the delayed window as special treatment.

Untrue, the delay had nothing to do with streaming rights, Netflix agreed to the 28 day delay to get rental disc at a reduced price, blockbuster paid more then Netflix to avoid the delay.

Now the agreement blockbuster had with Warner has expired, the studio has decided the delay is for everyone since sales on DVD, BR and VOD are up, it does seem like it is the right decision for them.

Also, the deal BB has with Fox and Universal is up soon also, I wonder if they will do the same as Warner.

 

[dangue]

Untrue, the delay had nothing to do with streaming rights, Netflix agreed to the 28 day delay to get rental disc at a reduced price, blockbuster paid more then Netflix to avoid the delay.

Now the agreement blockbuster had with Warner has expired, the studio has decided the delay is for everyone since sales on DVD, BR and VOD are up, it does seem like it is the right decision for them.

Also, the deal BB has with Fox and Universal is up soon also, I wonder if they will do the same as Warner.

Sorry, but I recall reading an article at the time of Netflix going to the 28 day window that they agreed to it, in part, in exchange for more streaming rights.

 

[dangue]

Equal parts semantics and poor choice of words... doesn't really change my point.

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I guess I fundamentally don't agree with your point then. You concede it's not special treatment, but you still think that everyone should be on the same playing field? Let's take that to other areas of industry... Say multi-channel tv providers... Direct shouldn't be able to contract to pay the NFL a ton of money for Sunday Ticket because that makes the playing field uneven in their favor.

While the example is different in a sense, it is fundamentally the same issue: One company is willing to pay more to be able to provide a service that it's competitors are unwilling to pay for (new releases during the 28 day window or NFL ST). I don't see a problem with this sort of differentiation as it will allow consumers more choices to find what fits their needs and tastes. And if the companies miscalculate and fail because of a bad choice, well that's the nature of competition.

I don't think the playing field needs to be leveled in this manner, unless the companies themselves decide to do it contractually (a la most favored nation clauses in carriage agreements- but again, companies negotiate and contract for that sort of protection- it is not imposed by some need to enforce fairness).

 

[GaryPen]

600% premium over what exactly? A month of my time is worth more than $5 for the freedom to watch what I want when I want to. How is it any different from spending $20+ on a Blu-Ray and only watching the movie once, which we probably still do plenty of... which gets into 1000's of % overpaying by your math. Or wait, do you wait 9 months for it to drop to $15 or something, save another $5? Either way it's the same difference, studios will get their money, and 28 day delay or not the services should be on the same playing field. I've ordered maybe a half dozen PPVs in my life and they've been from places like Amazon, not DirecTV.

Do you also never go to the movies because you can save $15+ if you wait 12 months and get it on sale on DVD?

I have no idea what you are trying to say. None of your math makes sense.

It's quite simple. $6 is 600% of $1. If you pay $6 to watch a movie vs paying $1, you are paying 600% (or 6 times) of what you could be paying to watch that movie. (A 500% premium, actually.) It's a sucker deal, pure and simple.

The $5 has nothing to do with "a month of your time". As you are not sitting in a dark room, not living a month of your life. You are merely waiting 28 days to watch a movie. A movie. If seeing that movie 28 days sooner is that important to you, spend the extra $5. I'd rather use the $5 for something else, knowing that I will be able to see the movie in a few weeks for about 16% of what you are paying.

As for not going to the movies to save money, that's exactly what I do. But, I don't buy the movie when it comes out. I rent it as part of an unlimited package or for $1 from a kiosk. I do go on occasion, just to get out of the house on an occasional "date", if it's a good "theater movie". I rarely buy DVD's, as well, except for a few special ones.

 

[meStevo]

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