DirecTV Pays Studios To Help Confuse Customers Further
from the restrictions-may-apply dept
The film studios have convinced Netflix to sign deals that expand the company's access to streaming film licenses -- in exchange for agreeing to delay new releases by 28 days. Studios, of course, think this will somehow magically ramp up user purchases of physical DVDs, though it seems the primary result is going to be a lot of confused consumers, who see new releases for rent in one place, but not in another. But the studios are likely quite pleased with themselves, given the deal gives them more license negotiation power -- and allows them to charge companies more money if they want a perceived leg up on Netflix. If nobody is willing to pay, the studios figure they've still managed to create a wider delay window (the exact opposite of what should be happening in the broadband age).
But Blockbuster quickly jumped at the opportunity, throwing money at the studios, not only to avoid the new release delay, but so they could use the opportunity to mock Netflix instead of having to innovate. DirecTV has also now decided to play along, and will be paying for the honor of offering new releases under the "DirecTV Cinema" brand. Like Blockbuster, it didn't take DirecTV long to brag that unlike Netflix or Redbox, they'll be getting Avatar the same day it hits store shelves:
"As many as 400 new movies will be available this summer through DirecTV Cinema. Titles from Universal Studios Home Entertainment, Twentieth Century Fox and Time Warner Inc.'s Warner Bros. will be given to DirecTV subscribers 28 days before they can be rented on Netflix, said Paul Guyardo, DirecTV's chief sales and marketing officer"Granted this might not hurt Netflix much, given the fact that DirecTV agreements with the studios ban them from offering subscription service, so if users want these new releases -- they have to pay between $4.99 and $5.99 per title -- nearly the cost of a Netflix subscription. You also had better hurry up and watch your movie, given that under a 2008 DirecTV agreement with the studios, movies you store on your DVR will be automatically deleted after 24 hours. While the studios think layering restriction upon restriction onto how, where and when customers can consume their product is helping them save the traditional DVD -- all they're really doing is delaying the inevitable death of physical media, annoying and confusing customers, and making it harder for people to consume their product.
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Filed Under: movies, release windows
Companies: directv, netflix
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Re: Thinking of the children...?
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What's that saying? You don't compete with free by sucking?
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Maintaining the delayed release agreement with Netflix is key for them. As long as they can go to Blockbuster and say "Now you pay MY price for these rentals, or you won't have anything to offer that Netflix doesn't do better."
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If I didn't want to wait, I'd rather rent the Bluray for $4 for 5 days at Blockbuster, and get 10x the quality.
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I think customers understand that some places have exclusive contracts or some items are not available everywhere. I don't go to Wal-Mart to buy AlienWare laptops etc.
Not saying it's a smart move; but I don't think consumers will be confused or distressed over it.
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I don't expect to see a mass defect to BB to rent new releases or anything, but I can see people being incorrectly upset with NetFlix or RedBox as a result because they assume THEY are the ones delaying releases.
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Hollywood sure has people hyped up to see their latest turkey, while Netflix is giving me access to 100 years of stunning filmmaking from all over the world. I could go out and see a movie, but I know I've got a better movie waiting in my mailbox. If I'm going to bother to leave the house, I'd rather go to the theatre and see a play with real people.
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It's not the only, or even the first movie we've seen that is better than anything coming out from America's corporatized movie factories.
About the only way 28 days will ever really matter is if the studios find a way to release a virus that infests you with murderous rage unless you watch their crap within that time limit.
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Re:
Same here. I also can't imagine getting my pants wet thinking about seeing Avatar on my laptop TV screen. If I want to see a blockbuster (no pun intended) I'll go to the movies and see the film as the creator intended - on a huge screen with surround-sound and greasy popcorn drenched in butter.
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Re: Re:
Actually its ...
"greasy popcorn drenched in Partially Hydrogenated Vegetable Oil"
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Luddite
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They're signing their own death warrant
We recently got our Netflix streaming disc for the Wii. When the wife saw it her immediate response was: "cable is doomed".
Now I have been a DVR user for a long time and I have a wonderfully geeky MythTV setup but having everything on demand for a low flat monthly fee is the bees knees. There's even some older HBO/Showtime stuff on there.
So if you have a little patience you can wait for the $15 per month per premium channel stuff to come to you.
A comparable cable package that would allow timely access to all of that stuff would be $100 per month.
An extra 28 days isn't going to matter to a lot of people.
I suspect that there is a quick falloff and a gaping chasm from "willing to buy" versus "interested in renting".
BTW: Don't bother with the Roku player. It's crap.
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Re: They're signing their own death warrant
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24-hour delete is self-defeating
(At least, that was the case when it first launched. I don't know if the terms are the same since they rebranded it as Zune; I haven't had any interest in checking.)
The thing is, I have young kids. My peace and quiet "me" time doesn't start until they're in bed. I could start watching a movie, and it's not inconceivable that something could happen that would take me away from the movie for the night (kid getting sick, a nightmare, a dozen and one other things that parents deal with), and I wouldn't get back to the movie until my next "me" time -- 24 hours later. Oops, movie's deleted.
Which is why I've never used the service.
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Re: 24-hour delete is self-defeating
Those were the last movies I will ever "rent" under those terms.
I've found other options that better meet my needs. Netflix is one such option.
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Timing
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Re: Timing
If I were that hot about a movie, I would pre-order it from Amazon.
I am "processing" one of those right now infact.
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Not that complicated
It may be, in part, about getting more people to buy DVDs. But mostly it's about the studios wanting to get a cut of each DVD rented, at least for the first 30 days. Netflix could've thumbed their nose at the studios, but that would likely have killed their streaming service as studios pulled movies off the virtual shelves.
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@Steve
It is HD 1080i. I had the misfortune to "upgrade" to one of these crappy devices recently because they said they were turning off the MPEG2 HD Spigot in favor of MPEG4. So they offered a "New and improved" crappy DVR which reminds me of DishNetwork's crappy DVR software.
The damn thing doesn't even record the second tuner so I can go back to the other show...
And yes, the 24-hour window shows are $6.00. Plus, there's some new DVR has some sort of On-Demand capability where it secretly records obscure TV shows during off-peak time and then presents ads in for them in the scheduler like an annoying Carnival Barker, and also has an ethernet port in so in the future, I can use DirecTV's pricey version of NetFlix.
I really want my TiVo back. Thinking of switching to (ugh) Comcast.
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@Steve
It is HD 1080i. I had the misfortune to "upgrade" to one of these crappy devices recently because they said they were turning off the MPEG2 HD Spigot in favor of MPEG4. So they offered a "New and improved" crappy DVR which reminds me of DishNetwork's crappy DVR software.
The damn thing doesn't even record the second tuner so I can go back to the other show...
And yes, the 24-hour window shows are $6.00. Plus, there's some new DVR has some sort of On-Demand capability where it secretly records obscure TV shows during off-peak time and then presents ads in for them in the scheduler like an annoying Carnival Barker, and also has an ethernet port in so in the future, I can use DirecTV's pricey version of NetFlix.
I really want my TiVo back. Thinking of switching to (ugh) Comcast.
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Netflix has more and more stuff available to stream. That is what I like. I don't want to bother with shipping little discs back and forth or paying $20 for a disc I may only watch once.
I am perfectly comfortable with what I am spending and have no intentions to change that just to support some business model I'm not interested in using.
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So what..
Or learn to DL off the net, 6 months BEFORE its even released??
Big challenge.
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soooo...
Cause I can get it (if I wanted to) before you even release it to DVD because video piracy is far from controlled.
So don't give us what we want, then make it take longer to give us what we want...what do you think we are going to do? We will go get what we want, when we want it...
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Re: soooo...
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Re: Re: soooo...
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Right..
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No shots at Blockbuster?
I see some numbers are going to be rising and it won't be profit or stock well at least not for BlockBuster and DirecTV.
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Called DirecTV Toll Free Telephone at 1-877-781-4046 - Got Perfect System/Service
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