Netflix Agrees To Delay Fox And Universal New Releases, Annoy Avatar Fans
from the let's-make-it-harder-for-the-consumer-to-access-our-product dept
Netflix recently decided it would be a good idea to strike a deal with Warner Brothers that involved delaying all new Warner Brothers releases by 28 days. Film industry executives somehow believe this strategy is going to help them sell more DVDs, though as we've been discussing, the deal as designed seems just as likely to confuse the hell out of consumers as it tries (and fails) to prop up less innovative companies. Why would Netflix agree to such a deal? It was the only way they could get Hollywood to loosen their vice-like licensing grip on the number of titles they allow Netflix to stream via broadband.
Of course the deal doesn't apply to Blockbuster, who ponied up the cash to the studios so they can apparently mock Netflix and Redbox in advertisements instead of actually innovating. None of this, including the fact that Netflix is facing a class action lawsuit, has apparently fazed Netflix or the studios -- as Netflix has now signed similar delayed-release deals with both Twentieth Century Fox and Unviersal Studios. As with the Warner Brothers arrangement, this will ramp up Netflix's access to both studios' libraries for streaming, though it looks like it won't necessarily save Netflix any money:
Netflix says its deal with Universal will give it the "benefits of reduced product costs;" it does not make a similar assertion about Fox. Both deals do however let Netflix build up its instant-streaming catalogue. Fox, for instance, says it will make all prior seasons of several hit TV series, including 24, Bones and King of the Hill, available to Netflix instant-streaming subscribers, while Universal says it is doing the same with some "premium domestic titles," like Gosford Park.
Not too surprisingly, the press release announcing the deal tries to pretend that the deal is about "providing consumers with attractive options" when it does the exact opposite. Netflix goes on to insist that by restricting how consumers can consume studio content, they're actually making film delivery more "flexible" and "convenient" and that the deal is just "a win all around."
Granted, Netflix customers who really only use Netflix's streaming service may not care about this, especially if they're not all that interested in new releases. Still, that doesn't make keeping your product out of customer hands any smarter of a business plan when you're trying to compete with piracy. One of the first major titles to be impacted by the deal will be Avatar, which thanks to this "convenient" deal won't be available on Netflix in any form until 28 days after its April 22 street release date. Customers annoyed by that delay might go buy the DVD, or hey, they might just go download it via Bit Torrent, where they aren't forced to wait for no particularly good reason.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: movies, release windows
Companies: fox, netflix, universal
Reader Comments
Subscribe: RSS
View by: Time | Thread
Welcome to the real world, media companies, I'll be over there, eating popcorn (to help the "struggling" corn farmers of course) watching you struggle to your inevitable and impending death.
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
Queues > 28 days
Increasing their streaming catalog is the best thing they can do and that's a great business model. I only talk to a few other Netflix users and they all agree that they don't use Netflix to get new releases as soon as they're released. If anything this delay will make them forget about those movies. Bad for studios, no big deal to Netflix.
[ link to this | view in thread ]
yup
[ link to this | view in thread ]
drive to bittorrent
[ link to this | view in thread ]
[ link to this | view in thread ]
axed
Oh, and I won't be using BitTorrent.
[ link to this | view in thread ]
What People Don't Realize
[ link to this | view in thread ]
Way late...
Netflix is not for the current releases anyway that's what the torrents are for :))))
[ link to this | view in thread ]
Maybe Netflix is just playing nice since they think they're soon going to be the #1 game in town.
[ link to this | view in thread ]
Blockbuster
Ok, I don't understand why BB paying the studios is considered a bad thing. I would think that BB now has a competitive advantage with the ability to get the new releases of the DVDs in consumers' hands almost one month before the other two competitors. If they have the cash to make them more competitive, and (easily?) gain market share, why do they need to expend the time and resources right now to "innovate"? It seems to be some BB hate, with no good reason.
-- Casey
(Not affiliated with Blockbuster in anyway, not even as a customer)
[ link to this | view in thread ]
I am sporting some serious Holly Wood over this ...
I often wonder if the consultants used by the video industry are the same ones used by the record labels.
[ link to this | view in thread ]
As much as I don't like it...
There are worse things that companies have done to piss me off. If I really really really want to see a movie without waiting, I will find another less convenient or more expensive means (neither of which ever really happen).
[ link to this | view in thread ]
Run Out to Buy
NOT
It's becoming clear that there is collusion between the Hollywood studios, Blockbuster and the cable companies (who are allowed to put movies on their OnDemand services the same day the DVD is released) to prevent Netflix and Redbox from providing consumers a choice. That doesn't excuse Netflix for being stupid... but you can bet that, in addition to the 28 day window, the agreement forces Netflix to play nice-nice and not berate the frakking studios. I hope Redbox doesn't roll over like Netflix did and sure the studios for as much as they can get from them. It would serve those pompous-assed studio execs right.
[ link to this | view in thread ]
Netflix win
Streaming will put a quick end to piracy too. If I can stream any movie any time I want, why would I bother filling my hard drive with a pirated copy? And instead of making a copy for a friend, I just tell them it's streaming on Netflix and they can go click the play button themselves.
Anyone too cheap to pay the minimum Netflix subscription fee is never going to give Hollywood much money anyway. Hollywood, get a clue. Netflix has it figured out.
[ link to this | view in thread ]
Not worth the time to download it, nor is it worth the cost to buy it for inflated amounts.
It'll be on On-Demand eventually, and maybe I'll watch it. Already seen it at the cinema anyway. I was going to go this last weekend, but spent the cash on a new game and food to grill out.
[ link to this | view in thread ]
[ link to this | view in thread ]
Long term?
Giving up something in a niche shrinking market for something in a growing market (video streaming) seems like a fairly smart move over the long run. It is actually nice to see Netflix think about the long term instead of the short term in this case.
I've also noticed that explosion of movie kiosks lately. Literally at every convienence store there is either a Blockbuster Box or Red Box now in my town. If you are Netflix and believe the future is streaming, and most folks now have access to cheap $1 nightly rentals, you can see why they are trying to think two steps ahead of everyone else.
Time will tell, but I think if they got something significant in the streaming market than they get two thumbs up from me.
Freedom
P.S. I've cancelled both my NetFlix and BB subscriptions a few months ago (yes, I had both). With the amount of content online (legal and illegal), at kiosks, etc., it just doesn't make sense to pay a monthly fee any longer. Just as with music, if Netflix can build a significant library of 'convienence' they'll eventually get me back as a streaming customer.
[ link to this | view in thread ]
Re: Blockbuster
[ link to this | view in thread ]
Re: Queues > 28 days
[ link to this | view in thread ]
Re: Blockbuster
and, it's a "bad thing" for them because instant-play convenience is a bigger consumer boon than a 20% shorter delayed release.
finally, it's a "bad thing" for them because an enormous, long-tail catalog is a bigger consumer boon than a 20% shorter delayed release.
m3mnoch.
[ link to this | view in thread ]
My view
What's sad is I WAS planning to buy Avatar but I feel at this point I'll show the studios how I feel about this. And while it's only $20.00 if enough people feel like I do I'm sure they will get the point. If not oh well.
[ link to this | view in thread ]
This won't work like the studios think
Netflix streaming is great. My only complaint has been the weak selection available. If they can increase this, all the better.
And the physical media death spiral continues...
[ link to this | view in thread ]
Pushing the envelope
[ link to this | view in thread ]
Re: Long term?
[ link to this | view in thread ]
Digial is the future for Netflix
Value #1: I don't mind the 28-day delay since I can get more content options. While not everything available on BT is in the Netflix catalog, adding more options is always a good thing.
Value #2: The BB and RB kiosks are only gonna have the latest and greatest, and not nearly the selection that Netflix can offer for immediate download and no extra cash from my pocket than what I already budgeted. Sure, I can get a BB subscription, but I really don't ever need to be the first on my block to see a new release.
Value #3: My Tivo is already able to download from Netflix (and BB and Amazon), I think the XBox and PS3 also can do this, so Netflix is building up streaming to a good assortment of boxes already connected to your TV. Again, no additional out-of-pocket spend to dual-purpose my device.
It won't be long before the media industry catches on to making all content available for viewing whenever the consumer wants to see it. If I want to watch a movie from 1939, and they get a cut from it, that's money that they would be not be getting by keeping it locked up. Maybe it isn't (or wasn't) a popular title, so what? Making it available makes it possible to profit from it.
We've got the mechanisms in place, all they need to do is open up their content, which has been THE biggest problem all along. They aren't completely solving it here, but it seems like a step in the proper direction.
[ link to this | view in thread ]
I'm teaching everybody I know how to find entertainment freedom. Would they try to pass laws forcing me to watch or listen to them now?
LoL
[ link to this | view in thread ]
Oddly enough
[ link to this | view in thread ]
Memory Gone
As a Blockbuster follow-up, were we live they have shortened the rental period and re-imposed the "late" fee which the call something else as an Newspeak attempt to hide what they are doing.
[ link to this | view in thread ]
avatar
[ link to this | view in thread ]
Netflix isn't growing their subscriber base through plastic disks anymore.They are growing it through streaming to set-top boxes. If this deal increases streaming options, I win. If Netflix gets more subscribers, they win.
If it simultaneously decreases costs for Netflix, great. I want them to stay in business. Netflix instant view eliminates cable tv for me. That's a $50+ bill down to a $9 bill.
I want a forward thinking company like Netflix to eventually have the heft to push other companies into streaming everything.
[ link to this | view in thread ]
It was just a matter of time.
I'd love to see the numbers on Avatar when it's released. How many are purchased, rented, and of course, downloaded illegally.
Sadly, there's no way to track this, but I've a feeling the latter will be the winner. After all, it's the highest grossing film ever. Why should people have to pay for it... again.
[ link to this | view in thread ]
the news here is that more movies will be offered streaming. netflix knows that this is the future, and more importantly knows that this is what we customers want.
i understand the spin that this delay is somehow bad for us netflix customers, but really it isn't. netflix is giving a little (really, what is 30 days on one movie when you have 100 years of movies to choose from) and getting a lot (more streaming).
Besides if you OMG NEED a movie the day it comes out, chances are you are going to buy it, not rent it.
i am willing to be patient if it means i get more out of the deal. more out of the deal is my reason to buy.
[ link to this | view in thread ]
as an avid Netflix streaming user...
Wait 28 days for Avatar? Who cares! Watch every TV show I ever wanted on demand? Wunderbar!
I watched 4 seasons of The Office in 1 week. Yes, I nearly died of laughter!
[ link to this | view in thread ]
Streaming vs. New Releases?
Netflix made the right choice, but it was crappy that Hollywood made them make that choice.
[ link to this | view in thread ]
On the bright side,
This move will reduce the number of people willing to wait. They'll just download it instead and pull it off their que, reducing demand and, if anything, reducing my wait by a few days. On the other hand, if this makes more old TV series available commercial-free, I'm all for it.
[ link to this | view in thread ]
Re: Netflix win
Netflix streaming is awesome, but as long as it's not hi-def, then I am still going to want the BluRay disc for certain titles.
[ link to this | view in thread ]
Blockbluster isn't the only one advertising the 'new window'...
[ link to this | view in thread ]
Re: What People Don't Realize
That said I agree with those who say that streaming is the future(not just for Netflix).
[ link to this | view in thread ]
Re: What People Don't Realize
[ link to this | view in thread ]
Re: Re: Netflix win
You are wrong about that. Netflix is most definitely streaming HD stuff to set-top and gaming devices. Now, mind you, not everything is HD, so your bluray method is probably best for now. But the stuff that is HD on netflix looks amazing. I have a 46" TV and even at the present 720p level they are streaming at (netflix plans to up to 1080p soon), it looks incredible compared to DVD. They are adding more and more stuff in HD, so I would imagine eventually most things will be offered in HD streaming.
[ link to this | view in thread ]
Re: Re: Re: Netflix win
But that also brings up another problem. I don't see anywhere on the Netflix site that you can tell whether the streaming version is offered in HD or SD. Again, please correct me as needed, which is usually all the time.
[ link to this | view in thread ]
Re: Re: Re: Re: Netflix win
That is a very good point. On the website, there is no indication if something is in HD. I know a show like Heroes or Legend of the Seeker are in HD. I can see the indicator for it on my xbox when I go to the show in the list, but it doesnt show any of that on the actual website itself. This would be a good thing to send in a request/complaint to netflix for.
[ link to this | view in thread ]
Re: Netflix win
[ link to this | view in thread ]
To bad for the studio.
[ link to this | view in thread ]
Re: Netflix win
[ link to this | view in thread ]
[ link to this | view in thread ]
Re: Re: Blockbuster
And if they control retail, they could refuse to sell milk on weekends, that might raise the perceived value and scarcity, so they could sell it for more on weekdays. Or just raise prices to infer fake scarcity. Hey, it's their right to experiment.
I mean, the world works better with exclusive retail deals, right? True for movies, true for milk, true for all. Competition at the customer-facing level be damned!
/sarc
[ link to this | view in thread ]
Re: Re: Re: Re: Re: Netflix win
http://www.netflix.com/WiHD?lnkctr=hdgenre
So you can see ALL the HD offerings.
[ link to this | view in thread ]
[ link to this | view in thread ]
Re: Re:
Not sure what was wrong with me, yesterday, but I forgot to type parts of sentences throughout the day.
[ link to this | view in thread ]
Companies can do what they like
It's not up to you to think they do everything just for you, they dont. They have every right to do what they like with that product.
And just because they do not make that product immediately available to you in a form you want, well thats your bad luck.
You have no right to demand that they do anything else, it's their product after all they can do what they like with it.
ANd just because it's not immediately available to you in a form you want does not give you the right, morally or legally to steal it, by steal it I mean illegally download it, or to break a lock and remove a physical DVD from a shop.
There is no difference, it's still physical theft.
So the world does not relvolve around you, and every company does not exist to make you happy, get over it.
And welcome to the real world, it's clear you have little or no real life experience, and have never tried to run a business and feed a family.. Mabey im wrong, this is just based on you're attitude and comments.
[ link to this | view in thread ]
Re: Re:
[ link to this | view in thread ]
I had a Blockbuster right next to my neighborhood. Even though I subscribe to Netflix I would still check movies out sometimes.
They closed that store. Now the closest is about a half-hour round trip drive.
So now instead of renting Avatar on Netflix I won't rent it at all. Good work!
[ link to this | view in thread ]
Re:
You won't get Netflix's streaming content but most of that you can just get on cable re-runs and use your DVR to collect it.
Blockbuster new releases are $3 for the first night and $1 daily rental fee thereafter. Paying $1-2 more to see new releases from Blockbuster where available vs. Redbox, when they're still new is something I don't terribly mind because it makes me happy. I personally have seen all the old stuff I care to and Netflix just doesn't work for me. Works for many but everyone's needs are different and my needs can't be met by Redbox or Netflix.
[ link to this | view in thread ]
Re: Re: Re:
[ link to this | view in thread ]
Re: Re: Netflix win
How about instead of a Wii or Roku, you just plug a real computer into your TV? I got a $350 Dell Zino and it works great - plus turns my TV into a giant monitor where I can do everything a computer can do - about the same price as a PS3. I use it every day and stream Netflix straight from it.
[ link to this | view in thread ]
Re: Re: Netflix win
[ link to this | view in thread ]
Stupid Hollywood
[ link to this | view in thread ]
Thieves
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
[ link to this | view in thread ]
I've been flixed
This totally sucks. When it does become available, if I don't send in my disks at the right time, I'll probably have "A very long wait" showing up in the movie's availability slot, and have to wait yet another month just to see it.
It seems that many Netflix subscribers are Netflix streamers, as am I. However, I prefer to watch movies with a blue ray disc on my 1080p HD TV and listen in true surround sound (5.1 Dolby). My Internet connection is below that with which Netflix deems necessary to stream movies in HD. The movies I can watch are on par most times with a standard DVD, but the sound is only 2 channel stereo. Add the fact that you don't have the "extras" to watch as you do on a disc, the viewing experience just isn't the same.
I will be looking into what Block Buster has to offer. Or maybe cancel my Netflix subscription and go back to renting the "old fashion way" at the local video store.
[ link to this | view in thread ]
Idoits..
[ link to this | view in thread ]
[ link to this | view in thread ]
[ link to this | view in thread ]
Netflix delay
[ link to this | view in thread ]
Re: Re: Netflix win
Just watched the entire series, 110 episodes(season six yet to be released) in HD quality on a 72'incher.
Was quite pleased and disappointed due to no season six.
Off to BitTorrents I go!
[ link to this | view in thread ]
NEWS
-Asn Inloggen
[ link to this | view in thread ]