Netflix on Friday announced deals with Universal Studios and Twentieth Century Fox. The distribution agreements will see movies from both studios released to Netflix customers through standard DVD, Blu-ray and instant streaming to TVs and computers.
Universal will make its new release titles available to Netflix members after a 28-day window. That gives Universal time for sales before making the titles available for rental and streaming. Fox is offering the same terms for its new releases.
“As the home entertainment market continues to evolve, we’re exploring new and creative approaches to distribution with our key studio partners,” said Ted Sarandos, chief content officer for Netflix. “Our intent is to forge agreements that make sense for the companies involved and that, on the whole, improve the consumer experience and the movie ecosystem.”
Netflix Bets on the Future
Netflix said the deals will help it better stock new releases for its members. The company also said it will get better prices on the products, which will let it purchase more units. Meanwhile, a license for Universal and Fox content gives the company’s 12 million members a broader selection.
As Inside Digital Media Senior Analyst Phil Leigh sees it, Netflix has decided it doesn’t want to pay the price Blockbuster is willing to pay to get new release DVDs as soon as Blockbuster does. Essentially, Blockbuster will get the DVDs a month earlier than Netflix, he said, but Blockbuster will have to pay a higher price.
“Netflix is deciding that their users will be more interested in instant streaming. Netflix is preparing its customers for the future, whereas Blockbuster is willing to pay to keep the customers that are living in the present and in the past,” Leigh said. “The immediate advantage for Netflix is that this will make its instant-streaming catalog bigger. It will probably…