Missing the point, Warner Brothers edition:

Marking the first step in what could be a major change in Hollywood’s relationship with Netflix Inc., [Can we say, “slow lede“? -Ed] Warner Bros. has struck a deal with the fast-growing online DVD subscription service that will prevent it from offering new releases until 28 days after they go on sale.

The studio is hoping that the four-week “window” will push consumers interested in watching movies at home to purchase the DVD. Warner already imposes an identical window on $1-per-night kiosk company Redbox and its competitors. Although its unilateral move against Redbox has led to a court battle, Netflix agreed to the 28-day window in exchange for improved financial terms, higher inventory levels and increased access to content for its online streaming service.

They really don’t understand how this works. Making people unable to see their movies doesn’t make people want to buy it more. Particularly with a service like Netflix where the marginal cost to rent a movie is zero. People have Netflix because they don’t buy movies just to watch them once.

I don’t see how this is going to do anything but tick off Netflix users and get them to watch fewer Warner Brothers pictures.

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