Please Hold for 28-Days
Why?
The answer is simple: It's the movie studios' attempt to force the consumer's hand to buy a DVD to watch it rather than rent it first. According to a Mashable article, the movie studios have been targeting companies like Netflix and Redbox to try to force their hand into delaying the availability of new movie releases.
The movie studio executives believe that this will be profitable for all parties involved in the long run but it's unlikely that this will be a profitable decision for Netflix in the end. As consumers, we don't like to be forced into our decisions. When a company tries to force our hand, we will find another way to get our products. Companies like Blockbuster and Hollywood Video learned this lesson when they jacked up their prices and movie-watches turned to cheap rental companies like Netflix and Redbox.
Netflix' decision to comply with Warner Bros.' demands might not be too profitable for them, since a 28-delay defeats the purpose of a 'new' release DVD.
The other company that movie studios targeted, Redbox, has resisted their demands, fighting back with lawsuits. I am a Redbox user myself, the kiosk that makes it worthwhile to get out of my house to rent a DVD for the very affordable price of $1 per night. The great features of Redbox, in addition to the low price, make it attractive to movie lovers like myself who cannot afford to buy every DVD that they want to watch. For those that are fond of ordering/reserving DVDs online, Redbox has that feature as well so you won't be making the trip to come back empty handed and they have recently dropped their used DVD prices to $5 from $7.
Movie studios make their profits from DVD sales while companies like Netflix and Redbox make theirs from DVD rentals. It's a good thing Redbox grasps this concept, even if Netflix seems to lack that understanding.
Published by Jordan Q
20-something living, working and going to school in Washington, DC. View profile
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2 Comments
Post a CommentChristina, that is a great piece of info! Thank you!
People can borrow new-release movies from their public library for free! Sometimes there are waitlists, but the upside is they start collecting names for the lists almost as soon as the movies hit theaters.