Mashable ran a story today highlighting a Netflix agreement with Warner Brothers for new release movies. Seems, Warner Bros thinks that if they make people wait 28 days to see a new release DVD they’ll be more likely to buy the DVD. And Netflix? Who knows what they’re thinking?
This is not a business strategy it’s arrogance. Not releasing content in hopes you’ll shell out $30+ to purchase a DVD is the ultimate attempt at customer coercion and will fail. And what’s in it for Netflix? Pissed-off customers?
DVD sales have been in the toilet for years so it’s really just one more nail in that coffin but trying to force customers to do anything they don’t want to do is a losing battle. Hello!? Warner Bros, haven’t you learned anything in the last few years? Seems the only strategy is to get out of the DVD business and make it someone else’s fault.
This announcement will be a boon to Warner Bros and Netflix competitors and opens up an opportunity for Blockbuster, Amazon, Hulu, YouTube and others. Holding content in hopes we’ll purchase isn’t going to drive sales and they know it, so in the next breath, both companies say they’ll be adding more instant streaming to Netflix, like we couldn’t see that coming. It seems likely that the next step is “premium” content from Netflix. Want this new release? $9.99 and you can stream it.
These customers may likely go elsewhere, at least initially–RedBox is certainly hoping they will. Most folks want to stream movies, so what’s next is more exciting than what’s now. So for now, I’ll hold me breath to see how this pans out. And, Warner Bros, I’ll wait 28 days to see your new releases.