HBO To Netflix: No More Cheap DVDs

    January 5, 2012
    Zach Walton
    Comments are off for this post.

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. 41 minutes ago via Twitter for Mac · powered by @socialditto

RT @jackshafer: Thereby launching a billion BitTorrent downloads. RT @sandoCNET: HBO stops providing DVDs to Netflix http://t.co/u7ccSGq1 2 hours ago via TweetDeck · powered by @socialditto

  • Jerrie DeRose

    Looks like I may be looking at changes for our household. I will never, and could not afford to use multiple streaming services. I would get rid of Netflix if Verizon buys them, I know too many people who have Verizon as their cell phone service who heartily dislike the fact that there is a limit on megabytes that are free when using the internet. We dropped our cell phone service about 6 months after they bought out alltel. Once there are multiple content providers, with each one wanting a separate fee, it would become impossible to access a variety of content. I hope to see Hulu and some of the other content providers increase their offerings. Then I would scale back netflix for movie rentals only.