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Warner Brothers still doesn’t get it, extends DVD rental and streaming delay to 56 days.. Netflix caves

netflixWarner Bros. Home Entertainment Group and Netflix, Inc. today announced a new agreement that will extend the current 28-day sales-only window to 56 days for Theatrical New Release and made-for-video titles on DVD and Blu-ray Disc.

This is crazy, it’s as if the studios learned nothing from the lessons learned by the music business and are actually trying to put themselves out of business. All this does is makes pirating go up. Take a lesson from Louis C.K. and release your stuff early and affordably and people will buy it. It’s not rocket science.

Mark Horak the president of Warner Home Video North America said that "Since we implemented a 28-day window for subscription and kiosk, we have seen very positive results with regard to our sell-through business,"  "One of the key initiatives for Warner Bros. is to improve the value of ownership for the consumer and the extension of the rental window – along with our support of UltraViolet – is an important piece of that strategy."

This is not going to make more people buy the movies, people will wait the extra days or pirate the movies. Why not just go to a year long window as it makes no difference at all to the consumer. There are too many easy ways to stream new releases on line or download them now, you can’t put this back into a box and every effort you try to do that just alienates your customers.

Sites like exist and movies are on megavideo and divxstage almost instantly upon release. Release your movies to your own studio rental service 30 days after theatrical release at say 5.99 for say 60 days then release at a premium price on DVD for say another 90 days before going down in price and you will see amazing revenue boosts and end piracy basically altogether. It’s not that hard.

Netflix really had no choice in the matter and Netflix Vice President of Content Anna Lee said "Netflix wants to ensure members have continued secure access to Warner Bros. DVDs and Blu-ray discs and, as such, is accepting the 56 day holdback"

The new agreement was announced at the annual Consumer Electronics Show in Las Vegas, Nev. in conjunction with an annual event held by the Digital Entertainment Group.

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