Warner to Double Embargo to 56 Days for All Rental Channel Netflix Redbox Blockbuster - High-Def Digest Forums
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Old 01-06-2012, 06:39 AM
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Default Warner to Double Embargo to 56 Days for All Rental Channel Netflix Redbox Blockbuster

As usual the whole article has some nuances.



Warner to Double Embargo to 56 Days for All Rental Channel Netflix Redbox Blockbuster
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Warner to Double Rental Embargo to 56 Days

6 Jan, 2012
By: Erik Gruenwedel


Warner Home Video’s much-anticipated expansion of the 28-day delay on new release titles into the rental chain reportedly will be announced next week at the Consumer Electronics Show in Las Vegas.

The studio, which created the first 28-day embargo on new releases to Redbox kiosks and Netflix in 2010, will double the embargo to 56 days and apply it to all rental channels, including Blockbuster stores, according to website AllThingsDigital.com, which cited sources familiar with the planned action.


Announcing the embargo extension at CES would conveniently coincide with Hollywood’s aggressive promotion of digital locker UltraViolet through trade group DEG: The Digital Entertainment Group.


Cloud-based UltraViolet is considered the studios’ last stand for physical and electronic sellthrough. Time Warner CFO John Martin Jan. 5 revealed that initial fourth quarter sales data of physical media was disappointing – underscoring the argument to bolster sellthrough at the expense of rental.

Home Media Magazine Sept. 23 first reported Warner’s plans to extend the embargo to this month, citing distribution and studio sources who were not authorized to comment publicly on the matter. The move would dovetail with Time Warner-owned pay-TV channel HBO’s confirmation Jan. 5 that it would no longer sell new release physical media to Netflix at wholesale on street date.

“Some of the Warner reps have called our key customers to let them know about this upcoming change,” a distributor told HMM in September. “They have all been consistent with their message.”

BTIG Research analyst Richard Greenfield has routinely blogged since then that studios should expand the embargo (by as much as 90 days) all new releases into the rental channel, with early availability only via higher margin electronic sellthrough.

A Warner representative was not immediately available for comment.
http://www.homemediamagazine.com/war...-56-days-26042

Last edited by Kosty; 01-06-2012 at 09:52 AM.
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Old 01-06-2012, 08:18 AM
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It seems that it is a negotiated deal from Warner to the rental outlets with the delay in exchange for the continuation of a steady supply of cheaper discs than just buying through retail outlets.

It seems that the negotiating power has shifted back in favor of the studios.


Quote:
Warner Brothers Will Make Netflix, Redbox, Blockbuster Wait Longer for New Movies

All Things Digital

JANUARY 5, 2012 AT 2:21 PM PT
Peter Kafka

Want to watch a new movie just out on DVD from Warner Brothers? You’re going to have to buy it, or wait even longer to get it from Netflix or other disc renters.

A new deal between Time Warner’s movie studio and Netflix, Redbox and Blockbuster will double the “window” for new releases. That means the services will now have to wait 56 days after the discs first go on sale to offer them to their customers, instead of 28 days.


The move is part of Hollywood’s ongoing campaign to bolster flagging DVD sales, and sources tell me the new deal is supposed to be announced at next week’s Consumer Electronics Show in Las Vegas. Warner Brothers executives have already talked publicly about extending the current window.

This is the second time that Warner has been able to get the rental services to wait before distributing its movies.

In 2010, it struck deals with Netflix, and later Coinstar’s Redbox, to wait 28 days before renting its new discs. Coinstar and Netflix later landed similar pacts with most of the other big studios. (Coinstar did up end up in legal battles with Universal Studios and 20th Century Fox, which like this Web site is owned by News Corp.)

Two years ago, Netflix was able to argue that by delaying access to DVDs, it was able to get its hands on more streaming content, and lower prices for the discs it did buy. This time around, though, Warner won’t be granting any additional digital rights to the studios. It will simply be offering them the ability to buy discs in bulk, at a significant discount to retail pricing, like they already do.

Earlier today, news broke that HBO, another Time Warner unit, would stop selling its DVDs to Netflix altogether, but sources tell me the two moves aren’t directly related. Next week’s planned announcement is supposed to be tied to Warner Brothers’ continuing push for Ultraviolet, an industry consortium that’s supposed to allow home video buyers to watch their purchases on multiple machines, in multiple formats.

Reps for Time Warner, Coinstar, Netflix and Blockbuster parent company Dish Network declined to comment.
http://allthingsd.com/20120105/warne...or-new-movies/
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Old 01-06-2012, 09:55 AM
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duplicate thread closed

Discussion already ongoing here.

http://forums.highdefdigest.com/high...ew-movies.html
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