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Netflix agrees to movie delays from Fox, Universal

updated 08:20 am EDT, Fri April 9, 2010

Netflix takes setbacks to get streaming rights

Netflix today struck deals with both Fox and Universal to bolster its Internet streaming service. In exchange for getting wider access to major movies and TV shows such as 24, Aliens and Gosford Park, Netflix will agree to stall the release of discs and Internet streams for the first 28 days after their retail sales dates. The terms mirror those set with Warner earlier in the year.

All three agreements are efforts by major movie studios to protect their retail sales and rental businesses, which have been hurt by Netflix as customers opt to rent titles through the subscription. Blockbuster and other retail outlets have faced store closures and financial struggles as their limited physical stock and emphasis on renting by the title have fallen out of favor.

Simultaneously, the move reinforces Netflix's increasingly important Watch Instantly feature. Besides being found on many newer Blu-ray players and all game consoles, the service got a major lift last weekend with the launch of the Netflix iPad app, which shows videos at high quality and essentially mimics the website. It has been one of the most popular apps for Apple's tablet and, even with a few days of release, had over 200,000 downloads despite just 450,000 iPads having been sold.



By Electronista Staff
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Comments

  1. WiseWeasel

    Junior Member

    Joined: Apr 1999

    +6

    Bast_rds!

    Gee, P2P networks don't wait 28 days before you can download these new movies in standard formats without DRM. In fact, high quality DVD and BluRay rips are often available weeks BEFORE the public DVD/BluRay release date. I think they're trying to tell us to pirate their movies instead, when they're unavailable for renting.

  1. rvhernandez

    Fresh-Faced Recruit

    Joined: Apr 2005

    +2

    I Think I'll Delay Paying Netflix for 28 Days

    I can't stand how Netflix has sold out to the movie studios. In the end all it does is frustrate Netflix's customers rather than increase DVD sales.

  1. darkelf

    Fresh-Faced Recruit

    Joined: Nov 2003

    +9

    shooting their right foot...

    behold, the movie industry, shooting their right foot, the same way they shot their left foot.

  1. iDaver

    Grizzled Veteran

    Joined: Nov 2001

    +1

    Awesome

    More streaming content, yes! It's great that Netflix reached an agreement rather than holding out and getting nothing. I'm not the impatient sort.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +4

    Re: Sell out

    I can't stand how Netflix has sold out to the movie studios.

    Yeah, what were they thinking. They should have just insisted on same-day rights, then watched as the movie studios just said "No" and then Netflix gets no content for it's streaming service.

    Making a deal isn't selling out. It's trying to improve your selection of products, and if that means making a deal, then you make a deal.

    Or did you not notice how Apple sold out to make a deal with the publishing houses to sell ebooks, rather than trying to fight for better prices for the consumer like Amazon.

    In the end all it does is frustrate Netflix's customers rather than increase DVD sales.

    But the studios don't care, because they get very little comparatively from Netflix on rentals and streaming. And it is their product. Should they not try their best to maximize sales and profits? It isn't like they're in business to make movies and get them to you in as cheap as form as possible.

  1. Norrin Radd

    Fresh-Faced Recruit

    Joined: Nov 2006

    +1

    @ testudo

    See comment #1 by Wise Weasel above. ;)

    The studios can fight it all they want. Then they will end up just like the music industry - riddled with rampant piracy. How did that work out for them?

  1. facebook_Kevin

    Via Facebook

    Joined: Apr 2010

    -2

    We just got PWND. T H I S S U C K S

    28 day hold for discs???? I can understand and agree to the streams being held 28 days, but for them to agree to the discs??

  1. facebook_James

    Via Facebook

    Joined: Apr 2010

    +2

    Ways to increase video piracy

    This shows the major movie studios just don't get it. There are two types of people, those that will be irritated but will wait the 28 days to get it cheaper on Netflix or iTunes (who believe in paying for what they watch) or those who won't wait and will pirate and download the movie from movie torrents hosted in China. However, with this move, the latter has increased.

    Look at the music industry: I can either go into a store, pay for the overhead of the store, product and shipping costs to get the latest CD or I can simply go online and download it from iTunes or lala.com for a third of the price. If they delayed downloads, I know more people would simply download pirated copies from torrents who would otherwise had paid and then not pay for the copy when it did become available as a legal download.

    Say goodbye to physical CDs and DVDs and hello to digital downloads anywhere in the world. BTW, trying to restrict by IP address is easily gotten around using fake proxies, so places like hulu.com that restrict to US IP address range is more annoying and stupid than effective.

  1. tobor68

    Fresh-Faced Recruit

    Joined: Oct 2007

    +2

    How to Kill "Piracy" dead, tomorrow

    To the movie studios:

    1. Reduce the price of a download to 99ยข for HD movies in iTunes and Amazon, etc.

    2. Throw away DRM. Let me convert it to whatever I want, watch it whenever I want. Or convert it for me.

    3. Get rid of digital 'rentals'. Rentals are dead, just like CDs and DVDs. I should own that copy for ever and ever, just like it's physical counterpart. If my copy gets broken, let me download it again, for free.

    4. Drop the 50,000 lawsuits. These are your best customers and they're trying to tell you that you're not listening to them. You'll save face in the public and you might actually make friends with your customers.

    The file sharing won't stop because there are those elements that want something for nothing. But it will reduce significantly in a short period of time.

    Try to think long term here, not short term because your margins will shrink for a short while but you'll move into the future and not be steamrollered out of business in two years.

    ---

    yeah, i know, it's falling on deaf ears.

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