Netflix and Warner Bros. have inked a new agreement in which Netflix will wait 28 days after the retail launch of DVD and Blu-ray films before making them available to its customers. The video rental service deems the new terms a "win-win" for both parties.
By delaying the rental availability of new releases, Warner Bros. can maximize the sales potential of films (it's noted that 75% of the sell-through occurs in the first four weeks), while still granting Netflix the right to Warner's movies. Netflix will also benefit from "reduced product costs and significantly more units and better in-stock levels".
"We're able to help an important business partner meet its objectives while improving service levels for our members by acquiring substantially more units than in the past after a relatively short sell-through window," said Ted Sarandos, Netflix's chief content officer.