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Time Warner Imposes 28 Day New Release Library Delay
Because This Will Clearly Save Sagging DVD Sales?
by Karl Bode Friday 21-Oct-2011 tags: Video · business · alternatives · consumers
Tipped by seginus See Profile
Early in 2010 Warner Brothers and several other studios convinced Netflix to agree to a 28-day delay before new releases, in the belief that this would prop up sagging DVD sales in the age of broadband video. It didn't work, thanks in large part because customers have more patience than the studios expected -- and because a Netflix subscription (despite recent hikes) still remains less than the cost of most DVDs. Despite this, Warner insisted the arrangement was a "success" and has recently been pushing to have that delay extended and imposed on all rental companies.

While they wait, the company has apparently been taking aim at library impact on DVD sales, and has been busy imposing similar delay requirements on library loans. The Swiss Army Liberation blog and MidWest Tape note that Warner Brothers is now placing a 28 day embargo on sales of Warner feature titles to libraries. They're also stripping out content from these copies, albeit at a price discount:

In addition to being released 28 days after the retail version, Warner’s rental version DVDs and Blu-rays will not contain bonus features or extras. However, we understand that there will be a significant price reduction for these products, apparently amounting to an average $4 per DVD title and $8 per Blu-ray title (see cost breakdown below). Warner Home Video has announced that it may seek to enforce its new policy by auditing its distribution partners’ sales. Additionally, Warner may require retailers, like Amazon, Best Buy, Walmart, and Target, to limit the number of copies of a new release that may be sold to a single customer.

Like so many legacy businesses impacted by broadband, executives apparently believe that making it harder for users to obtain content will prevent or slow the extinction of physical media. It will likely due neither, but it will likely continue to contribute to soaring piracy rates, a chain reaction studios haven't quite figured out a decade down the line.

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astroboi

@rr.com

Same old story.....

Warners has always been at the forefront when it comes to screwing up video distribution. Decades ago they decided that just renting vhs tapes was dangerous but they liked the money so.......They decided all video stores would have to have the renter fill out a simplified version of the contract they used for film rentals. Yes, 4 pages of "where will this be shown", "how many people will be there" and of course lots of scare stuff about what would happen if you breached the contract. Naturally, almost all stores just stopped renting Warner tapes and soon the contracts were forgotten. It's not the only strange thing they have done, just one of the most bizarre. Now they are going to forbid libraries from owning full featured dvds? How do they plan to pull that off? Telling public libraries what they can and can't own is not a politically good move.
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1
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Will delays work this time with no customer alternative?

Back in the mid 80's the major studios wanted to retaliate against Sony because of the Betamax decision by the Supreme Court. The studios retaliated, simply by delaying release of movies in the Betamax format and released them in the VHS format first. The retaliation worked because customers wanted their movies now. Most rental stores sold out their inventory of movies in the Betamax format and rented movies in the VHS format only.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Will delays work this time with no customer alternative?

No.

If you believe that DVD sales are down because rentals are cannibalizing DVD sales, delaying it an additional month isn't going to change anything because people have already waited 3-6 months (or longer) for the DVD and another month isn't going to be that much of a difference.

If you believe that DVD sales are down because libraries are cannibalizing DVD sales, see above. Maybe even more so since I can't imagine your average library has more new releases available then your typical Redbox kiosk.

If you believe that DVD sales are down because Netflix streaming video is cannibalizing DVD sales, then you haven't taken a look at the usual streaming selection. It's crap for new releases.

If you believe that DVD sales are down because piracy, well, you might have a case. But delaying the launch doesn't do anything because the people weren't paying anyways, they'll still get their hands on discs ahead of time, and in reports are true, many cases the rips were done by insiders anyways.

Mr Anon

@k12.il.us
I will take the piracy axe and grind it here.

No, most people don't care, there probably has not been a MUST HAVE movie in a while. They have gone from great novels in film format to gum wrapper comics. Some of them are really nice but if I have to wait til next year I really don't care I have other things I can do.

Now if the reverse was a $100 multi studio annual Pass that got me to stream their entire catalogs to just about any device I choose at will then I would do that rather than own period.

Go Tarheels
Premium
join:2006-01-05
Nashville, NC
kudos:1

Re: Will delays work this time with no customer alternative?

I don't know many people who buy DVD's anyhow, accept maybe children DVD's like Shrek or Toy Story...

If I "have" to go see a movie, I am fortunate today that I can afford to go the theater and watch it. If it's just a so so movie, it may be a year or more before I get to it...
nfotiu

join:2009-01-25

Really the plan is to get rid of dvds

"Like so many legacy businesses impacted by broadband, executives apparently believe that making it harder for users to obtain content will prevent or slow the extinction of physical media. It will likely due neither, but it will likely continue to contribute to soaring piracy rates, a chain reaction studios haven't quite figured out a decade down the line."

I believe the studios intent is to actually eliminate physical dvds, and the point of the Netflix/Redbox delays was always to move the renters from Netflix/Redbox to the VOD/PPV providers. I'd guess they make 4-5 times the revenue from PPV vs netflix or redbox. So even if they are getting 20% of the renters to buy a ppv release when they are bored instead of waiting for Netflix to get it, then the delay is a financial success to them. In fact some studios have pushed the Physical disc window a few weeks past the vod window now.

Online distribution gives them the control they are looking for, and the delay windows are their tool in getting people there.

Doesn't make them any less greedy, just pointing out the motivation is likely not what you say it is.

As you say though, piracy will keep them somewhat in check.
gorehound

join:2009-06-19
Portland, ME

Re: Really the plan is to get rid of dvds

If you do not support the DVd in the end all of you out there will be owned by the thieves of the MAFIAA.You will not own the movies,etc you buy they will own them and they will own you.
BOYCOTT MAFIAA !!
Buy only used physical media or buy new INDIE DVD.

TamaraB
Question The Current Paradigm
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said by nfotiu:

As you say though, piracy will keep them somewhat in check.

Their obstinate refusal to move into the 21st century makes the case for piracy.

Bob
megatron266
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Well if you are so concerned over this...

Then get a library card and check out books or go to a book store and buy some. Want to make a dent in their sales then stop watching TV, renting movies, and buying DVDs. Don't 8itch and complain about it in a blog because these companies won't care. They know that the mindless, lazy public will prefer to just click the button on their remotes to watch the latest flick. Read a book and save some brain cells people, don't fill their pockets with your hard earned money!!!

battleop

join:2005-09-28
00000

Re: Well if you are so concerned over this...

As long as people continute to buy or subscribe to their products and services nothing will ever change. They are in this to make money and if they continue to make money then they will believe that nothing is broken and will continue business as usual.
IanR

join:2001-03-22
Madison, NJ

Too expensive

When I browse for DVDs and BRs at places like BestBuy I usually walk out without paying a simple one. Why? Because the prices are unrealistically HIGH!
Sammer

join:2005-12-22
Canonsburg, PA

Re: Too expensive

said by IanR:

Because the prices are unrealistically HIGH!

If you think the prices for DVDs are unrealistically high then you obviously don't buy many tickets to see movies at a local theater. None of us like to spend money for crap, if the movie is really good plenty of people will be willing to pay the price.

Tomek
Premium
join:2002-01-30
Valley Stream, NY

Re: Too expensive

said by Sammer:

said by IanR:

Because the prices are unrealistically HIGH!

If you think the prices for DVDs are unrealistically high then you obviously don't buy many tickets to see movies at a local theater. None of us like to spend money for crap, if the movie is really good plenty of people will be willing to pay the price.

I agree, the only time I will actually pay for blu-ray if I saw a movie before and I liked it. That doesn't happen too often. I have at most 5 blu-ray movies that I actually paid for (plus Galactica series).

I also stopped going to movie theaters, got few bad experiences with rude guidos and low quality of movies. I want my money back....
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Thaler
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Every Bluray I've bought so far has been $5 a movie. I can't really complain about the prices.

kba4

join:2001-10-23
Canton, OH
Reviews:
·RoadRunner Cable

Time Warner Entertainment, Warner Bros, Time Warner

these are three separate companies... the headline makes it look like this is somehow related to Time Warner, when it's actually WB. I was expecting an article about TW Cable imposing new PPV or VOD rules.
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Sammer

join:2005-12-22
Canonsburg, PA

4 edits

Re: Time Warner Entertainment, Warner Bros, Time Warner

said by kba4:

these are three separate companies...

Time Warner Cable Inc. and Time Warner, Inc. are separate companies. Time Warner Entertainment Company, L.P. is a subsidiary of Tme Warner Cable Inc. Warner Bros. Entertainment Inc. is a subsidiary of Time Warner, Inc. Expect a name change from Time Warner Cable someday to end the confusion with their former parent.

skuv

@rr.com

Re: Time Warner Entertainment, Warner Bros, Time Warner

said by Sammer:

Expect a name change from Time Warner Cable someday to end the confusion with their former parent.

Time Warner Cable already went through a huge research period about a year or so ago on choosing a new name, and they decided that they were going to stick with Time Warner Cable and not change the name because people know them as that name.

So, no, don't expect it to change any time soon.

BUCKEYECOM

@buckeyecom.net

Re: Time Warner Entertainment, Warner Bros, Time Warner

I would expect one only because they PAY for the Time Warner brand.
slckusr
Premium
join:2003-03-17
Maumee, OH
kudos:1

Libraries

I was waiting for this one to happen.

28 days later.........
rmdir

join:2003-03-13
Chicago, IL

Who cares?

Instead of doing ignorant things like this, they should be concerned about the total mediocrity of the content they are selling that lets people feel they can wait. There is nothing so compelling on DVD that I'll be lined up outside BB, waiting for the doors to open the day a movie is released on DVD. There are a few classic movies i.e. FMJ that I have on DVD, but I usually watch movies once or twice and that's it. I'd buy a whole lot more if they were 10 bucks instead of $25. For the money they charge for Blu Ray, I have to hold them to a very high standard.

Sunshine1970

@qwest.net

Library loans

lol. Imposing a 28 day release date for libraries, and stripping out the bonus features for libraries might not work as well as they believe.

People donate DVD's to libraries, everything from new releases to hard-to-find stuff. I've done it. And these will be full-content DVD's.

What is the MPAA going to do? Go around to every library and complain that full-version DVD's are being loaned out?

Our library system rivals that of Netflix. When I've gone through my Netflix list to compare it to the library, I usually can find 80-90% of what I want from the library.

cdru
Go Colts
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Fort Wayne, IN
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Re: Library loans

said by Sunshine1970 :

...stripping out the bonus features for libraries might not work as well as they believe.

I'd happily save $4-8 if they strip out all the extra crap that I don't watch anyways. I can't remember the last time I watched any of the bonus footage.

HappyAnarchy

@iauq.com

Re: Library loans

I gaurantee that the unskippable trailers are not part of the bonus "features" that they are cutting out.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Library loans

Hitting stop, stop, play on most DVD players made over the last few years takes you right to the start of the movie.

Just in case battleop reads this, let me define "most" as all but 1 DVD player I have ever put a disk into play whether it be at my house, my parents, my girlfriends, or any where else over the last few years as I have not actually tried this on "most" dvd players ever made and sold throughout the world.

Go Tarheels
Premium
join:2006-01-05
Nashville, NC
kudos:1

Re: Library loans

Interesting...I'll have to try that on mine... Thanks for the tip!

FBGuy
Premium
join:2005-03-19
Evanston, IL
strip it out and increase the quality of the feature film.

RARPSL

join:1999-12-08
Suffern, NY
said by cdru:

said by Sunshine1970 :

...stripping out the bonus features for libraries might not work as well as they believe.

I'd happily save $4-8 if they strip out all the extra crap that I don't watch anyways. I can't remember the last time I watched any of the bonus footage.

The stripped (and cheaper) version is not the one that they sell you but the
"Library Version" that they want to force Libraries to have to buy. Thus if you buy in lieu of getting a loaner copy from your library it will not affect your cost. This stripped movie-only type DVD has already been done with some rental DVDs. There are a number of cases where I have rented a DVD which has no extras when I know the sales copy has extras on it.

As to the issue of them wanting to go to streaming and no longer have DVDs, this cuts their production cost since with streaming you only get the movie and thus there is no need to create the extras.

Dogg
Premium
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Belleville, IL
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Re: Library loans

I agree with the bonus content as well. I hardly ever watch it, and on those few titles that I do watch, it is on a Limited Edition copy that I paid extra for anyway.

And WB is currently playing games with the "digital copy" that is included on some titles. Typically, you get a hard copy that you can then import into iTunes or whatever to watch on your device of choice. WB wants you to create two user accounts (two different services - one verifies your digital license, the other a cloud storage service) and then STREAM it to your PC.
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Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
I can't remember the last movie I bought and looked forward to the extras...at all. Maybe the Back to the Future DVD set? But for most crap coming out these days, I could really give less of a crap for the loss of the aftermarket extras.

However, when certain producers consider closed captioning a "premium" feature, that's when I take offense.

»consumerist.com/2009/11/disney-r···ase.html

I'm sorry, but being able to read the dialogue your WTF audio-adjusted characters say is a must for most movies I care to watch. Quit trying to suck out a few extra dollars simply because some people may not be able to hear as well as others.

GoodDog

join:2000-07-03
Goshen, NY

Yawn

I don't care if they sit on releases for a year, with so much competition for peoples free time, TW can destroy their business and I am sure life will go on for me.

MSauk
MSauk
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Sandy, UT

Re: Yawn

These guys just don't get it. I really do wonder who is running these companies.
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Go Tarheels
Premium
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Nashville, NC
kudos:1
Good Point... I pay a lot for satellite and DVR and have so many shows to watch that movies come second... Not to mention the endless hours of free entertainment I get from reading blogs/forums on the internet.

wings10
I Am Legend
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join:2004-06-09
South Elgin, IL
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I can/wiil wait.

I wait 3 or more months to watch a new release already. I can wait another 28 days. I have a life. I have so many movies I have yet to watch this does not effect me one bit.

WB can go ahead and screw themselves. If they want/need to make more money then maybe you should NOT pay an Actor $25 million a picture?
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spewak
R.I.P Dadkins
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It's a bit like...

The Postal Service charging .99 cents for a first class stamp to fix declining use.
As for T/W, delay your product to market, yeah, that makes sense!
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b10010011
Whats a Posting tag?

join:2004-09-07
Bellingham, WA
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Can I buy the rental version DVDs and Blu-rays?

If I could buy them at $4 per DVD title and $8 per Blu-ray title I would certainly buy more.

All the bogus features are not worth the extra $$$

I buy a DVD for the movie, sure I might watch the bonus features once but that is not why I buy a movie.

idjk

@embarqhsd.net

TW 28 day hold on new films

If you care about this- after the 1st 30 days wait new films will be rolling out everyweek just like now
chgo_man99

join:2010-01-01
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They know about torrent

And they know customers get caught in p2p networks and threatened by dmca letters even those who tunnel through VPN proxies such as ipredator. That thing is a garage and offers bogus anonimonity. I know it did not disconnect and transmitted through open Internet. , I force interface port on my p20 program . So if not me whose fault? I predators who very likely released my info to stay on business while still stealing cash from users for "lousy anonymous protection"!

See 11 replies to this post
momus_98

join:2002-09-10
Pflugerville, TX
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Reviews:
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Something old, something new

I guess I'll just have to more stringently follow my policy of only buying used DVDs/Blu-Rays from Amazon Marketplace and refusing to buy new.

I'm forever behind the pop-culture curve anyway and my "latest & greatest" movies are easily six months after the fact.

Snakeoil
Ignore Button. The coward's feature.
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Mentor, OH
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·magicjack.com

Like Fox, Time Warner will act surprised

I remember a few months ago when Fox started "locking" access to it's content down. Then a fw weeks later they released a press statement talking about how surprised they were that their content was the most pirated.

When will these idiots wake up and realize that that the people want streaming media, and they want it at an affordable price [Netflix, Hulu]. Until they do, the pirates will win. And those that don't pirate will wait for it to be broadcasted or available on Netflix/Hulu.
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astroboi

@rr.com

So what else is new?

For years the film companies have sold dvds of their big titles in "theatrical versions" with the obligatory "How We Made It' short tacked on which was just endless praising of the director and ten minutes of scenes from the film. Then, a year or two later we get the Ultimate Version or the Directors Cut which is twenty minutes longer and NOW the story makes sense. So they are going to take it a step further and try to sell libraries a crap copy. Well libraries buy what they want. If it is a legal copy the library can buy it and loan it out so I'd assume we will still be able to borrow our Ultimate Editions for free regardless what goofy Warner Bros. decides to do.
Timmn

join:2000-04-23
Tinley Park, IL

Bonus Features or Extras, Who Cares?

If I buy, rent, or borrow a movie, it's because I want to see the movie, I don't care about the other bonus or extra crap they stick on them. So let them remove them from the Library copies, I won't miss them one bit.

NOCMan
MacChatter
Premium
join:2004-09-30
Colorado Springs, CO

Dont Forget

Lets not forget they are now also making the included digital copy SD or worse, and/or not allowing you to rent HD copies unless it's from an Apple TV device and not a Mac/PC.
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