The content industry is fighting tooth and nail to protect its precious revenue stream while doing everything it can to stop anyone coming up with newer models. Netflix, one of the big exponents of a new way of getting content to people, has agreed to delay rentals of Warner Brothers new releases 28 days to help the studio “maximize the sales potential of those titles,” which translates into ‘squeeze every penny from movie fans’ by, essentially, creating artificial barriers.
Netflix doesn’t walk empty handed out of the deal, but it still doesn’t look like it had too much choice in the matter. The DVD mail rental service gets cheaper prices after the waiting period and it also gets more titles for its online streaming service. No financial details have been revealed and it’s not clear how substantial the said savings will be for Netflix.
“We’ve been discussing new approaches with Warner Bros. for some time now and believe we’ve come up with a creative solution that is a ‘win-win’ all around,” said Ted Sarandos, chief content officer for Netflix.
“We’re able to help an important business partner meet its objectives while improving service levels for our members by acquiring substantially more units than in the past after a relat… (read more)