SAN FRANCISCO (AP) -- Netflix Inc. will delay sending out Warner Bros.' latest movies by nearly a month in a concession that the DVD-by-mail service made so it could gain rights to show its subscribers more movies over the Internet.
Netflix to delay delivery of Warner's latest DVDs
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Warner has been actively trying to delay rentals, especially cheap rentals (like Redbox) or rentals from companies they don't have revenue sharing deals with, as a way to boost sell through revenue. In this instance, Netflix at least got something back in return (more Internet distribution), and didn't just get hit with lawsuits like Redbox.
I think the studios are starting to realise how slow they've been with new forms of distribution like Netflix (both online physical and digital rentals) and Redbox (Internet + kiosks), since while they were preoccupied with fighting the Internet, it has allowed these companies to succeed. Just like how the music industry missed the boat when Apple came in with iTunes.
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