Originally posted by Bardock42
Even if just 10% of the people are "impatient *****", as you so lovingly put it, it will still "screw over" a considerable amount of people who perhaps signed up with the understanding that they would be able to see DVDs upon release, no?
It's far less than 10%, actually. Netflix did some rather easy to do analysis of their shipping against movie dvd/blu-ray release, calculated the impact of causing a delay of WB releases of 28 days, and arrived at a direct customer impact of far less than 1%.
On top of this, they actually "blogged" about it, and spoke directly to their customers through social networking sites.
Part of this deal was also an on-the table discussion of getting more WB instant watch films, even big name ones. This is the one key area that Netflix owns the entie market on in terms of price, customer traffic, and instant watch quantity.
In other words, this WB's deal creates more benefit to the average Netflix customer, in the long run, than it does harm Netflix's long term business. The instant watch market is the fastest growing niche for video out there. Netflix just happens to be a whole head and shoulders above the rest.
Now, 5-10 years from now, deals like this will hurt Netflix if the primary source of service comes from their instant watch. The location that is "first" will be the top dog, really...up to a certain price, that is. So, we could see a price war for instant watch, if Netflix gets any competition, anytime soon.
BTW, this is far from the first time that Netflix delayed media from a large media company, due to a business deal. Off the top of my head, there's many TV shows that are available to stream from Netflix just a few days after they broadcast, live. But, the TV group that hosts the program gets exclusive 1 or 2 day replays via their instant watch options on their websites: ergo the 3-5 day delay in the instant watch feature from Netflix.
You may be asking yourself, "how the hell does Dom know so much about Netflix?" That's cause of all things, this is an area that fascinates me as much as video games. I love movies, the movie industry, the marketing, everything about it. This all ties into my all time favorite love: technologiessssss!