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Disney may be next with forced 28-day Netflix delays

updated 08:20 pm EST, Wed February 8, 2012

Studios continue to push for disc sales

Disney is reportedly considering imposing a 28-day delay between DVD or Blu-ray movie releases and availability through rental chains such as Netflix and Redbox. The company's chief executive, Bob Iger, noted the potential strategy change during a quarterly conference call with investors and analysts.

The company appears to be the latest movie studio to question its existing agreements with rental and streaming providers, in an attempt to rekindle DVD and Blu-ray sales.

Despite the strategy shift, Iger admitted that the studio was "not seeing any effect from these dollar-rentals on their sell-through business" when other studios began to demand a 28-day gap. The executive nonetheless points to industry-wide declines in disc sales as justification for the delays.

Other companies to follow the same route include Warner Bros., Universal and Fox. Rental agencies can ignore the terms if they purchase the DVDs or Blu-ray discs on the open market, however the agreements with studios typically bring significantly lower prices for wholesale purchases. [via Los Angeles Times]




by MacNN Staff

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