Netflix Takes Two More Hits to Disc Plan Value

Posted January 7th, 2012 at 2:00 pm

It’s been a roller coaster ride on the Netflix front for the past several months as the company has seemed to produce bad news followed by good and then bad again. This time around, after announcing their first original programming set to debut next month, comes two pieces of discouraging news.

The first is that HBO is no longer supplying the company with discounted discs for their programs. This is an issue because HBO’s DVDs and Blu-rays are typically very pricey. Without a discount it is possible that Netflix will no longer build a supply of HBO shows or they’ll become much more conservative in what they offer.

Even more frustrating though, since HBO programs can at least be watched through other means, is an extended rental delay that has been agreed to with Warner Bros. Right now there is a 28 day window in which movies from WB (and some other studios) release before they are to be offered by Netflix or Redbox. Now though that window is about to double to 56 days.

I’m still of the belief that doesn’t, and won’t, increase sales of DVDs or Blu-rays but instead just change the perception of when the release date of a movie actually is for those that aren’t deemed worthy of a purchase. If someone has had no problem waiting that long because the movie wasn’t enough of a draw then they’ll have no problem waiting another month to potentially rent it.