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West Tenness
reply to Jason Levine

Re: Netflix not so smart?

said by Jason Levine:

What you're ignoring is that, before the split, Netflix used their DVD service to negotiate with studios. They agreed to a 30 day DVD waiting period and, in return, got more streaming titles (and reduced DVD prices).

Now what will they use to negotiate with the studios who see any streaming as a threat to DVD sales?

Streaming isn't the threat for newer movies. Not yet anyways. It's Netflix and Redbox allwoing DVD rentals for $1 or less. Back when video stores existed and charged $5 for a DVD some people said "heck for another $10 I can own the thing". Also the studios made more money from videos stores that charged $5 than when Netflix/Redbox charges $1.

Jason Levine

1 recommendation

The problem is that the studios *do* see streaming as a threat. They don't want people to be able to pay $8 a month and watch unlimited movies/TV shows. They want people to pay $15 (or more) to get the DVD.

They've consistently held back on allowing Netflix to stream recent titles. The Starz deal was a bit of a loophole that Netflix exploited. The studios hated it but couldn't do much about it. When the Starz deal ends, Netflix will need to ask the studios individually to allow them to stream recent movies. When that happens, Netflix will be at the studios' mercy as to what they get allowed to stream and at what price.
-Jason Levine