Netflix Now Gets Warner Bros. Movies 56 Days After Release

Netflix just can’t catch a break. Way back in July of last year, I wrote an article entitled The Case For Netflix, in which I defended their price hike. And I still stand by what I said, as Netflix continues to be a great service. Sure, I didn’t come rushing to their defense during the ill-conceived Qwikster phase, but to be fair, they dropped those plans like a sack of hammers after the internet made their displeasure known.

Well get ready to hate Netflix again, everyone who isn’t me. A while back, Warner Bros. reached a deal with multiple rental outlets that resulted in new releases from the studio being unavailable for rent for 28 days after release. This was done in an attempt to increase DVD sales. Warner Bros. and Netflix have now reached a new agreement that lengthens that window to 56 days for both theatrical new releases and made-for-video titles.

Obviously, Netflix wouldn’t agree to this without a good reason, and the press release suggests that Warner Bros. threatened to remove their titles from the Netflix library. So before you go getting mad at Netflix, consider that it very well may have been a 56-day wait or little to no Warner Bros. at all.

[hide-this-part morelink=”Full Press Release”] Warner Bros. Home Entertainment to Make New Release DVD and Blu-ray Titles Available for Rental Only After 56-Day Sales-Only Window

LAS VEGAS, Jan. 10, 2012 /PRNewswire/ — Warner Bros. Home Entertainment Group and Netflix, Inc. (Nasdaq: NFLX) today announced a new agreement that will extend the current 28-day sales-only window to 56 days for Theatrical New Release and made-for-video titles on DVD and Blu-ray Disc.

“Since we implemented a 28-day window for subscription and kiosk, we have seen very positive results with regard to our sell-through business,” said Mark Horak, president, Warner Home Video North America. “One of the key initiatives for Warner Bros. is to improve the value of ownership for the consumer and the extension of the rental window – along with our support of UltraViolet – is an important piece of that strategy.”

Warner Bros. is balancing its home entertainment revenue streams by creating different times at which a product is available at different prices. A staggered schedule allows the Studio to maximize the sales potential of its theatrical new release titles and VOD offerings.

“Netflix wants to ensure members have continued secure access to Warner Bros. DVDs and Blu-ray discs and, as such, is accepting the 56 day holdback,” said Netflix Vice President of Content Anna Lee.

The new agreement was announced at the annual Consumer Electronics Show in Las Vegas, Nev. in conjunction with an annual event held by the Digital Entertainment Group. [/hide-this-part]