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Netflix (and Redbox) have been blamed by some studios and industry analysts for the decline in DVD movie sales. You can add TV DVD box sets to the list, according to comments by BTIG Research analyst Richard Greenfield.

Greenfield believes that Netflix’s offering of all but the most recent seasons of many popular TV shows is undermining the shows’ sales on disc. Says Greenfield:

“What amazes us is that TV content owners are making TV streaming rights available to Netflix . . . It will be interesting to see if Hollywood executives can resist Netflix’s short-term cash, in order to protect their DVD ‘cash cow’ or whether they at least start adding some ‘000’s’ to the annual rates they charge Netflix for content.”

With Netflix’s recently unveiled streaming-only plan, the company is clearly trying to cast as wide a net as possible. Offering compelling and current content is more vital than ever for Netflix, and TV content represents a large fraction of the company’s streaming offering.
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Do you think Greenfield is right, Insiders? How many TV DVD box sets have you purchased lately?
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Will Hollywood increase the rates Netflix pays for content to offset these alleged losses?

(via Home Media Magazine)

14 Responses to “Analyst: Netflix Harming TV DVD Box Set Sales”

  1. Visitor [Join Now]
    Firstlawofnature [visitor]

    If Greenfeld could convince the access providers to turn off the internet for good, all the content guys would start selling tons of DVDs again and his beloved universe of companies would earn a lot more money.

  2. Visitor [Join Now]
    Dude [visitor]

    The day iTunes begins charging $.50 per episode of a tv show and $.25 for a song is the day I will begin charging up the card by the hundreds of transactions…I’ve purchased dozens of the $1.99 album of the day from Amazon over the years.

    There are alternatives networks!! $3 per episode, $1.29 for popular tracks…$9.99 for a digital copy when the physical is usually cheaper within a month….eh, I’ll do without.

  3. Member [Join Now]

    This guy is clueless. DVD TV sales are down because these box sets are overpriced and the market is flooded. Just because people will watch it for free on TV doesn’t mean they are going to pay $50 or $75 for it. And then they release a half-season set to get the Christmas dollars and then a full season set at the end of the season. Companies seem to have forgotten that customers have brains and are not just wallets with legs.

    • Visitor [Join Now]
      Jamie [visitor]

      Beat me to it. The season sets are way overpriced. Go look at Deadwood or Rome or other HBO series in your local Best Buy. They want $40-$50 for a season, which is usually only half of the amount of episodes of a network show.

      $50 for 12 episodes for each season of Deadwood. I love that show, but that is an insane price. That is why they gather dust on the shelves.

  4. Visitor [Join Now]
    rb [visitor]

    Actually just bought the dvd whole first season of FRIENDS the other day for a Christmas gift for a ‘friend’ who said they wanted it. Found it at Half Price Bookstore , new, for $9.98! Also had other older dvd tv series there, like Facts of Life, Happy Days, etc. Another great place to look for old tv series/seasons is at Big Lots. Usually one season is priced at $6. I think there will always be a want/need for physical media (dvds,etc)….As long as the dvd movie or tv series is worth wanting/collecting–and as of recently, seems to be better quality shows on tv than movies at the theater!

  5. Visitor [Join Now]
    Arnold [visitor]

    I think Greenfield has his markets mixed up. If you are a potential customer of a TV boxed set, it’s because you want all the extras that come with it. I’ve already seen season four of Mad Men, but I’ll eventually want to see the DVDs because I want Mat Wiener’s commentaries. I agree that more aggressive pricing is probably the best (and perhaps only) way they could increase sales, but if someone is watching a TV series (or movie), it’s because they’re satisfied with the stripped down version. That’s competition, and I don’t think it’s going to go away.

  6. Visitor [Join Now]
    Russ [visitor]

    This guy is an idiot. Streaming has nothing to do with it. I can rent the discs from Netflix and it averages out to $12 for the set to rent it. Is anyone really going to watch a series more than 4 times in their lives? Renting it 4 times IS STILL CHEAPER than buying it!

    I have nothing but contempt for a functioning human being who won’t do the simple math.

  7. Member [Join Now]

    how is netflix and redbox to blame for this. i don’t see how redbox can be they don’t rent tv shows on dvd or blu-ray

  8. Visitor [Join Now]
    Jimbo [visitor]

    I pay Comcast already. I am sure that eventually high bandwith users will pay more. AT&T did with their data plans.
    I don’t know about other cities but in Pittsburgh the local library always carry popular tv shows from the previous season. Rentals are free. Is someone going to try to limit that?

    We also have the STEALERS!

  9. Member [Join Now]

    If I’m going to buy a dvd box set, it’s because I’ve seen previous seasons on Netflix/Redbox. For example, Dexter seasons 1&2 are available for streaming on Netflix, so after I was done watching them, I went out and purchased seasons 3&4. If not for Netflix, I never would’ve watched the show.

  10. Visitor [Join Now]
    Rob [visitor]

    Echoing “s142424” and “Jamie”: I think what Mr. Greenfield doesn’t understand (and this goes for a lot of people too) is that not all TV shows deserve a DVD box set. Lost, yes. Two And A Half Men, no. If the show’s a bona fide hit with a huge following, then yes, by all means, put out the DVD box set so someone who actually enjoys it can watch it over and over if they choose. [One complete season set mind you… I’m tired of Nickelodeon and all the various SpongeBob collections.] If it’s just a show someone puts on to provide background noise while working the crossword or holding a conversation with their spouse or significant other, then no.

    Echoing “Jamie” and “Russ”: Pricing is also an issue as the companies producing these sets are greedy. It’s the same with the music companies and cds. You can’t keep expecting people to shell out $20 for something that costs $5 to produce.

    Finally, echoing “jwerk”: I’m also using Netflix to check out some shows that I missed the first time around. If they weren’t on Netflix at all, then I still wouldn’t have seen them and how does that benefit the creators/companies that produced them?