Warner Bros. And Netflix Reach New Deal


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Warner Bros. said today it has reached a new agreement with Netflix to make new Warner titles on DVD and Blu-ray available to Netflix members after a 28-day window.

The move by Warner is an effort to squeeze all the potential profit it can from its new releases. Warner says under the deal Netflix will benefit by paying the studio less for new releases. The agreement also expands the license for Warner Bros. streaming content allowing Netflix to offer its members more movies they can watch instantly.
"We've been discussing new approaches with Warner Bros. for some time now and believe we've come up with a creative solution that is a 'win-win' all around," said Ted Sarandos, chief content officer for Netflix.

"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. At the same time, we're able to extend the range of choices available to be streamed to our members."

Warner Bros. says 75 percent of new release sales occur in the first four weeks of availability. New releases from all suppliers account for about 30 percent of Netflix shipments. Look for more studios to follow Warner's lead.

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