Posts Tagged ‘movie studios’

Netflix Caving to the Studios

Friday, April 30th, 2010

Most of my posts regarding Netflix lately have been pretty positive. This one is an exception. My wife wanted to see a movie the day it was released and noticed that her option was “Save” and not “Add to Queue”. She couldn’t figure out what was going on, so she dug a little further. It turned out that the movie she wanted to see was from one of the studios Netflix caved to recently.

Netflix now has agreements with Warner Bros, Fox, and Universal. The deal says that Netflix cannot rent out a new release for 28 days after a release is first made available for sale. The idea is that people will be more likely to buy a movie if they can’t rent it. The idea is ludicrous. If I have to wait 28 days to rent a movie, one of two things might happen – 1.) I say screw it and choose to NEVER watch the movie. 2.) I choose to wait 28 days and then RENT it anyway. I am not going to buy something just because I can’t rent it for a while.

Red Box apparently has similar deals. Blockbuster sees an opportunity and is proudly broadcasting its new release selection. This earned my wife’s business, though I think Blockbuster is already dead. I just don’t see why the movie studios, along with their peers in the music industry, are so far off the mark on this issue. Technology should have been embraced, but it has been shunned. What could have brought untold profits to the movie industry has instead made them a laughing stock among business peers and their customers.

I know right now every movie I intend to buy this year on DVD (or Blu-ray). The movie industry will only influence my movie-buying decision process in one way – make a movie I want to buy. It’s that simple. Assuming I will become a customer by default is absurd. Wake up movie studios. You are a dying industry. Turns out this rant is more about the studios than Netflix, though I still think Netflix shouldn’t have caved.