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.
Do you think Greenfield is right, Insiders? How many TV DVD box sets have you purchased lately? Will Hollywood increase the rates Netflix pays for content to offset these alleged losses?
(via Home Media Magazine)