HBO stops selling DVDs to Netflix - High-Def Digest Forums
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Old 01-05-2012, 06:07 PM
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Default HBO stops selling DVDs to Netflix

http://news.yahoo.com/hbo-stops-sell...221440832.html

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LOS ANGELES (AP) HBO fired a shot across Netflix's bow this week, confirming it will no longer sell discounted DVDs of hit shows like "Boardwalk Empire" to the subscription video service.

The move by Time Warner Inc.'s pay TV channel is more antagonistic than damaging. Netflix Inc. can maintain its mail-order movie rental offerings by buying HBO discs from other sources even retail stores. "Netflix will continue to provide HBO programming on DVD and Blu-ray discs for our members," spokesman Steve Swasey said in a statement.

Still, HBO's jab heightens the growing rivalry between the companies.

In December, Netflix CEO Reed Hastings told an investors conference that HBO's online viewing service, HBO GO, was "the competitor we fear the most." He noted that consumers with good incomes can afford to both services, but when money is tight they may be forced to choose just one.

Time Warner CEO Jeff Bewkes has belittled Netflix, telling The New York Times just over a year ago that it was like "the Albanian army going to take over the world."

HBO has consistently refused to license its hit shows to Netflix's online streaming service. The decision to also halt bulk disc sales to Netflix is intended to encourage those who want to watch HBO's shows to subscribe to HBO.

"We believe in exclusivity," HBO spokesman Jeff Cusson said.

Netflix offers online streaming of movies and TV shows for as little as $8 a month, but some content providers such as Sony Corp. have pulled movies for fear of damaging their relationships with traditional TV distributors, who offer packages of channels for $100 a month or more.

The Starz pay TV channel, which carries movies from Sony and The Walt Disney Co., has said it will pull its movies from Netflix's streaming plan in March. That move is the result of a fee dispute between the companies.

Netflix had about 23 million streaming customers as of September, while HBO has around 29 million pay TV customers.
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Old 01-05-2012, 06:13 PM
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Gotta love first sale doctrine for optical disc. All this ends with digital. The studios have much more control on how gets their content and at what price in a digital world. Which will not be good for consumers.
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Old 01-05-2012, 06:19 PM
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Originally Posted by ack_bak View Post
Gotta love first sale doctrine for optical disc. All this ends with digital. The studios have much more control on how gets their content and at what price in a digital world. Which will not be good for consumers.
Keep pushing consumers and it will not be good for studios. We are already seeing that. Plus they can still get thier supply from retail. Don't think it's going to matter much.
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Old 01-05-2012, 06:23 PM
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Originally Posted by ack_bak View Post
Gotta love first sale doctrine for optical disc. All this ends with digital. The studios have much more control on how gets their content and at what price in a digital world. Which will not be good for consumers.
Absolutely. The studios will have all the control of digital. I fear the day.

I do have hope that they will sell us consumers who have high end systems the ability to watch 4K content in the future.
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Old 01-05-2012, 06:23 PM
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Keep pushing consumers and it will not be good for studios. We are already seeing that. Plus they can still get thier supply from retail. Don't think it's going to matter much.
Not for digital. If the studios don't agree to licence the content for streaming, Netflix has zero way to acquire the content and stream it outside of the studios.
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Old 01-05-2012, 06:32 PM
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Originally Posted by ack_bak View Post
Not for digital. If the studios don't agree to licence the content for streaming, Netflix has zero way to acquire the content and stream it outside of the studios.
Right - just like TV stations can't just show whichever movie they want to. They can only show those movies they have license agreements for.

But as long as HBO produces ODs of their exclusive content, then their "exclusivity" is a bunch of BS due to First Sale Doctrine. If HBO really wants true exclusivity then they should cease all OD prooduction of their content.

So what are the chances of that happening?
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Old 01-05-2012, 06:34 PM
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Wasn't there someone around here who said studios will rue the day netflix stops buying discs? And here we have a studio that personally stopped selling them to them. Interesting.
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Old 01-05-2012, 06:36 PM
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Wasn't there someone around here who said studios will rue the day netflix stops buying discs? And here we have a studio that personally stopped selling them to them. Interesting.
HBO is not a studio. They are an American premium cable television network, owned by Time Warner.
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Old 01-05-2012, 06:38 PM
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Not for digital. If the studios don't agree to licence the content for streaming, Netflix has zero way to acquire the content and stream it outside of the studios.
But the article wasn't talking about digital. It was talking about their Disc rental plans. I know how you are a stickler to stay on topic.
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Old 01-05-2012, 06:40 PM
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Wasn't there someone around here who said studios will rue the day netflix stops buying discs? And here we have a studio that personally stopped selling them to them. Interesting.
Guess you missed the fact that it's not going to really affect them.
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