socialmedian: Netflix Wants Half Off Under Release Delay Scenario

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Netflix Wants Half Off Under Release Delay Scenario

Source: paidContent.org

Nov 06, 2009

Summary

The studios have put the screws to Redbox and Netflix (NSDQ: NFLX) in order to get them to take new releases at a later date. Redbox has sued all the big studios—but Netflix is taking a different tack. During the company’s most recent earnings call, Netflix CEO Reed Hastings said acknowledged the impact that cheap rentals were having on DVD sales and said that “if we can agree on low enough pricing for delayed rental, it could potentially increase profits for everyone.” Now, Video Business cites sources who say that the discount Netflix wants is as much as fifty percent—something that the studios haven’t agreed to.

The article portrays Netflix as very willing to acquiesce to a release window—something that was also very apparent in Hastings’ remarks. Indeed, Hastings said that he thought some sort of arrangement could be worked out within a year, in part because his service was less dependent on new releases than its rivals.

Reports that at least Warner Bros. (NYSE: TWX) was trying to negotiate a rental wi

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