HBO To Netflix: No More Cheap DVDsBy: Zach Walton - January 5, 2012
HBO has produced some of the most popular television series of all time like True Blood, Sex and the City and Game of Thrones. Too bad Netflix is no longer able to buy the DVD sets for these series from HBO at a discount.
This news doesn’t mean that Netflix is no longer going to be offering HBO series on DVD and Blu-ray to their customers. It’s just as it sounds, Netflix has to buy HBO series on DVD at retail price instead of the reduced wholesale price they have been getting the DVDs at for years.
It’s a smart move too because the only way to get HBO series with Netflix is through their rental service. Netflix was smart to continue buying the DVDs as it continues to be a popular option among their subscribers even as their streaming business becomes more popular.
HBO has their own streaming service through HBO GO that rivals Netflix’s streaming service. It’s main strength is that HBO GO is the exclusive provider of HBO’s popular original content.
As streaming services like Hulu become more prevalent and more content providers create their own streaming services, it will be interesting to see how Netflix adapts to an environment where there’s more competition than the struggling Blockbuster.
The response to the news from the Twitter public has so far been unworried or humorous:
I think HBO’s plans to no longer discount DVDs for Netflix is kind of a non-issue. Netflix operated for years on first-sale doctrine.