According to Netflix CEO Reed Hastings, one of the major reasons his company entered into a new release delay deal with Warner Bros. is consumer ignorance. Last week, during Netflix’s fourth quarter earnings call, Hastings said that most Netflix subscribers don’t have a clue when movies are released on DVD. Here’s what Hastings said about the subject:
“For us, most consumers are not sure if DVDs come out 90 days after the theatrical release, 120 days, 150 days, 180 — it is all over the map. It constantly changes, not only between studios but also between specific releases. So there is not a high expectation of any perfect day when it is supposed to be out. . . Subscribers are just not that aware of when DVDs come out relative to [their theatrical release].”
Hastings went on to say that his company had received few complaints about lack of availability of The Invention of Lying, the first Warner film affected by the new deal, and that Netflix was “happy with the decision”. Only about a quarter of Netflix’s rentals are new releases, according to the company.
Are consumers really as clueless as Hastings claims when it comes to DVD release dates? If there’s a movie that you want to purchase or rent, Insiders, do you a bit of research and learn when it’s coming out on disc? Let us know if the comments.