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“May you live in interesting times,” goes an apocryphal Chinese saying. And for the video rental industry, interesting times these are. The latest in a flurry of recent deals between Hollywood studios and rental companies came today in the form of an agreement between Netflix and studios Fox and Universal.

Like the deal Netflix signed with Warner in January, this newest agreement imposes a 28-day waiting period on Netflix customers for new releases from Fox and Universal. In exchange, Netflix will receive more units from the studios at reduced cost, as well as wider access to the studios’ catalogs for its streaming service. In addition, Netflix will be able to stream some or all seasons of such Fox television series as Lie to Me, Bones, 24, King of the Hill, Prison Break and Arrested Development.

Who is the winner in this deal, Insiders? Netflix? Hollywood? Consumers? Will a similar agreement (at least the delay window part) be following shortly for Redbox, as it did with after the Netflix/Warner deal?

(via TechCrunch)

28 Responses to “Netflix Signs Delay Window Agreements with Fox, Universal”

  1. Visitor [Join Now]
    whoever [visitor]

    i remember back a few months when michael lantz said these windows would never happen. here we sit now with netflix signing two more window delays. just like last time when netflix signed the deal with warner redbox was right behind them. the same thing will happen with this redbox will sign with fox next week universal next month and paramount and disney in june. both these companies are about to become the generic rental services that there price tags dictate. michael eat crow!

    • Administrator
      Michael [administrator]

      A little bitter, are we? I am guessing you are one of our friends from VBG, right?

      Anyway, i find it funny that you call Netflix and Redbox “generic rental companies” when it is absolutely clear to you and the studios that they are the future of rental. The 28 day windows currently bring negotiated only prove that more, not less.

      I don’t know that i ever said that these windows would never happen, but I do find them anticompetitive as long as Blockbuster is still around. The reality is, a 28-day window is fine and i have no problem with it, as long as the playing field is level. The first sale doctrine messes that up a bit, since indies will still be able get round the window no matter what. But, indies simply don’t matter anymore, and soon neither will Blockbuster.

      I’ll gladly eat crow if it is warranted, but it I’ll still be better than the empty table you are sitting at.

      • Visitor [Join Now]
        Adam [visitor]

        You really think the video store will be dead a year, 5 years, 20 years from now? Nope. Family Video’s killing it and expanding. Brush up a bit bro, they aren’t going anywhere. Sure RB will still be around too, but if you think B&M’s are done you’re gonna need a side of gravy w/ that crow cause it’s gonna be tough to down.

        • Administrator
          Michael [administrator]

          I certainly didn’t say anything about the video store being dead – where did you get that from?

          First off, I don’t really care one way or the other what happens, but I will say that my personal habits have kept me out of any video store for a number of years. I do think this is a trend, and it will continue to go that direction.

          I do believe that video stores will have to provide more perceived value to customers if they want to compete with the likes of Redbox and Netflix. This will happen by lowering their prices or starting/expanding monthly subscription programs. Without that, they simply cannot compete.

          Think about what areas B&M video stores are currently leading in. Is it sales of DVDs? No, that is Wal-mart and Amazon. Is it rentals of new releases? No, that is Redbox and other kiosks. Is it rental of older films? No, that is Netflix.

          Looking at pricing, they will not be able to compete much longer renting movies at $4-$5 a pop. If I am going to pay that much, I will rent it through On Demand, or Vudu, or AppleTv, or Amazon Unbox, or… (the list goes on).

          Older titles at $1 or so will still work for a little while, but with Netflix, Hulu, cable companies streaming those titles for free, how long can that last?

          What areas do you see B&M video stores excelling in 1, 5 and 20 years down the road? (Seriously, 20 years?)

          • Member [Join Now]

            Family Video will go downhill too. If Blockbuster is doing bad, then how will Family Video compete?

          • Visitor [Join Now]
            Adam [visitor]

            Good old Netflix said they’d still be delivering movies for another 20 years so thats where I got 20 from. Family Video is a midwest company with over 600 stores and is still expanding. I’m sure a lot of people haven’t heard of them but they’ll soon be number one.

            I agree with you who would pay $4-5 a pop for a movie? I rent my catalog for 99 cents 5 nights and NR $2.99 a night and anything outside of 3-4 weeks is 1.99 for 5 nights. Family video does 2.59 NR so don’t think that just b/c BB charges $5 everybody does. Were on the same page, that price point makes little sense.

            Do yourself a favor and read the comments section and see what people think about the new 28 day window and get back to me.

          • Visitor [Join Now]
            Adam [visitor]

            Forgot to mention the website is

          • Member [Join Now]
            Casey4147 [casey4147]

            I actually like Family Video’s business model. If you’ve got one in your area and haven’t checked it out, you’re doing yourself a disservice. New releases start at I think $3 for one night, quickly going to $3 for two nights or $5 for 5. When a title is moved off the new release wall, it’s $1 for five days, and when it’s old enough to be considered a catalog title it’s moved again to the 2 for $1 for 5 days section. New release kids movies show up on the new release wall but again once a video has run its course as a new release it’s moved to a kids movie section that rents for free for 5 nights. They maintain a couple of other special interest sections, a free-for-5-nights “education” section – how to improve your golf game, etc. And any movie coming to the theater is moved to a feature section – they move all the Batman titles there when a new Batman movie hits the theaters, for example. That section is also $1 for 5 nights.

            So, basically, you rent older titles for free (kids, adult-ed), $1 (movies that aren’t new releases but less than say a year old) or 2 for $1 for everything else. Yes, selection is limited in comparison to NetFlix as a B&M must be, but they’ve got a good thing going.

  2. Visitor [Join Now]
    Firstlawofnature [visitor]

    So the 28 delay is better or worse than the work around for redbox? They were getting product late anyway right?

  3. Member [Join Now]

    Like i’ve said elsewhere on this site, Bloatbankrupt will be yesterday’s news soon no matter what. They’re too far in red ink as it is. THEY are the reason for the 28-day windows. The studios LOVE BB…they HATE Redbox. BB and the studios are standing in front of progress, which is what Redbox is.
    Firstlawofnature, RB is still sending out its employees to retail stores to buy Fox and Universal titles, which results in a small delay of 3-5 days on their titles. However, RB is having to pay full retail for each DVD they buy, which is most likely causing RB to spend more $$$ on DVDs than they’d probably prefer. With their Warner deal, they’re getting the DVDs at a reduced cost, even though they’re having to wait 28 days to stock them in the kiosks. The first title affected by the 28-day window was “The Blind Side”, followed by “Sherlock Holmes”.
    I hate to say it, but it looks like pretty soon ALL the studios will want the 28-day window, and RB will likely cave. I wouldn’t be shocked to see a Fox-RB deal before “Avatar” releases, seeing Fox will want to make another bundle off the DVD release.

    • Visitor [Join Now]
      kradberg [visitor]

      In my area the Blockbuster stores are slowly being closed down. I used to have 3 stores in a 5 mile radius. By next month there will be one left.

      There is one Blockbuster Express Kiosk in this area and it already has ‘Sherlock Holmes’. Why is it that the studios don’t block Blockbuster from doing this, if they hate the $1 a day concept so much? Just wondering…

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      So you think business will be worse after the 28 delay?

  4. Visitor [Join Now]
    Michael (@TCRPMG) [visitor]

    I can see this from both sides. The big studios are afraid of losing their shirts to Redbox and Netflix because people will skip the ridiculous movie theater and DVD prices. Why wouldn’t they? I can’t afford to go out and see every movie I want, nor can I afford video store rental prices. A buck a day at Redbox or Netflix DVDs and streaming movies are the way to go. I am a member of both companies, and love the freedom. So, I have to wait a month longer to see a movie. Who cares? I can enjoy it in my home, make my own popcorn and still pay a hell of a lot less that I would at a movie theater.

    Seriously, a monthly subscription to Netflix is cheaper than going to one movie at the theater. Once you figure in the ticket price, a ten dollar soda and a ten dollar popcorn (I may be exaggerating), you have paid for one month of Netflix and quite a few rentals at Redbox. And that’s only if you’re a loser and didn’t have a date.

    Last I checked, we are still in a recession. Regardless of what they say, a lot of people are still struggling to make ends meet. Netflix and Redbox are catering to those needs and making entertainment affordable. Kudos to them for their efforts.

  5. Visitor [Join Now]
    Atomic [visitor]

    I find nothing wrong with that deal. In fact I would much rather have more movies to stream than new releases.Honestly, there has not been one movie in the last two years I couldn’t wait for when factoring in how much it would cost to go to the movies even without snacks.

  6. Visitor [Join Now]
    slidecage [visitor]

    going to call Netflix about this.. IF i knew this i would not of stayed for another month.. the 28 day window is killing netflix for me

    • Member [Join Now]

      Same here. Netflix isn’t the same. Looks like this just made my decision to close my Netflix account. Also I see Redbox caving in as well. Hopefully I’m wrong about that but then again they caved in with Warner already. Guess I’ll be sticking to Redbox and Blockbuster which right now has all there movies at 3 days for 3 dollars except the family movies/kids movies which are 1 dollar for 5 nights. I just hope Blockbuster doesn’t go and re-raise the prices.

  7. Member [Join Now]

    I don’t understand people that get upset with Netflix because they can’t get a new release. Netflix does not guarantee new releases, the way the service is made, no one SHOULD be expecting a new release every tuesday. What ever service you choose, you will never be completely happy. You spend 40-60 a month for basic cable, only to be shown the same TV shows/movies in repetition. If you only rent from redbox, very few new releases are actually released on tuesday, you run the risk of the movie not be available when you want it, and they don’t carry a lot of different types of movies. BB online is expensive and does not have a high turn-around rate, the stores carry the titles but are generally expensive, and the location of the B&M stores and kiosks are far. You could rent the new release dvds from Amazon On Demand, Itunes, or PS3 for 3.99, if you are that desperate. Every service is often supplimented with something else; cable, netflix, redbox, bb. I have waited 3-6 month for said movie to be released, what is another month? To me, not a lot of good movies have been made in the last couple of years, I would rather watch the TV shows I love. The streaming service that Netflix offers more than makes up for the delays of new releases; I don’t see any of the others offering extras.

    • Visitor [Join Now]
      slidecage [visitor]

      Ummm im getting almost 200 channels from cable for 55 bucks per month.. if netflix wants to offer me 200 dvds per month for 55 bucks that is another story.

      about waiting another month.. When people signed a years pre paid contract with netflix there is no. 30 day delay….. This is like going to work and your boss goes .. well we are going to wait 30 days to give you this weeks paycheck.

      depending how bad it gets i will just go back to family video where i can get new releases day 1 for 1.49 a night

      • Member [Join Now]

        Do they have any Family Video in San Antonio, TX? This store sounds good. Don’t know of any mom and pop shops around here.

      • Member [Join Now]

        No it is not, that is a faulty comparison. Netflix does not guarantee new releases, I have been a customer for over 3 years. At a job you are GUARANTEED pay, to compare that would be like bonuses maybe, not regular pay. You also DON”T sign a years contract with Netflix like you do with cable or dish. You sign up for a month, or months. Learn to read before you post, I was just stating that no one is happy. Yes, you get 200 channets for 55 but how many channels do you watch? Another thing is there is no way for an individual to watch 200 dvds a month, you would need 25 hr in a day to do it, and would have to spend ALL the time watching them.

        Also if you really want to compare it equals out to the same spectrum. I pay 18 a month for 3 out and get at least 15 movies a month. I also get unlimited streaming to my roku box that I watch on my hdtv. I have over 300 movies and TV shows in my queue. If there is programming that plays on prime time that I must see, I go to hulu (which will be on my roku box soon).That leave me 37 out of the 55 you spend that could be used for bb, amazon on demand, or any vod service where I can see that new release if I am so desperate.

        I know this is redbox website, but so many people b*tch about how bad Netflix and BB is when redbox is no where near half as great as either. Cable/dish like netflix is about convenience, redbox is convenient for some. People fail to realize that everything is cheaper then redbox. Yes, you pay $1 a rental but that is only IF you want the movie for one night, If it is available, and If you want to watch it then. 5 days to keep a movie at $7-10 is a steal. The $16 a month with netflix comes out cheaper still; no gas, mailing convenience and you could get 15-24 a month. My post was meant how can you get upset with netflix when redbox is in a much more damage boat?

  8. Visitor [Join Now]
    April [visitor]

    I have no problem waiting 28 days if they are going to add more streaming content. I can watch a crap load of older movies that I haven’t seen in ages while I am waiting the 28 days. The movie industry has gone to shit and there aren’t that many films I just HAVE to see now anyway. Sherlock Holmes?? Are you kidding me? Haven’t see it. Sure, its probably a decent movie (maybe). Do I HAVE to see it now?? Nope.

  9. Member [Join Now]

    I ususally use Netflix for older movies and TV shows, so this doen’t affect me too much. I still think it’s a bad idea to sign the deal, especially in Netflix’s case. They would still get the movies even if they didn’t sign this deal, right?

  10. Member [Join Now]
    djjojo1 [debra]

    has anyone else membership expired. i tried to look at the movie list that i’ve already rented thats when it tells me i need to update. then i try to update and it says something about a gold membership and u have to pay for that. i would just like to beable to get the free codes again on first monday and keep track of movies rented.

  11. Visitor [Join Now]
    angryjerry [visitor]

    blockbuster is dead and netflix and redbox will continue to be succesfull for a long time!