Netflix and Warner Bros Agree on a 28 Days Later Saga

Netflix sold out it’s new releases with Warner Bros to get more catalog titles. They’re delaying new releases by 28 days.

Carl DiOrio writes:

Warner Bros. and Netflix on Wednesday unveiled a dramatic pact that will delay the studio’s new-release discs reaching Netflix’s 11 million online rental subscribers for 28 days.

Netflix agreed to the deal because it will boost the number of Warners catalog titles that Netflix will be allowed to offer while providing the delayed rental titles on less expensive terms. New-release rentals account for an estimated 30% of shipments by Netflix, whose customers skew toward catalog product.

Still, Blockbuster and other disc-rental operations will gain a competitive advantage among those wanting to rent new-release DVDs and Blu-ray Discs on the same day they hit stores. Eventually, the deal could have broad ripple effects within the home entertainment industry, but for now, the 28-day policy applies only to Netflix.

We were going to say something pithy here, but we feel we’ve done our job with that headline.

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