"Netflix to delay delivery of Warner's latest DVDs"

This is for anybody who has Netflix

San Francisco's Netflix Inc. has decided to delay the sending of Warner Bros. new movies so that "[Netflix] can gain rights to show its subscribers more movies over the Internet... Netflix hopes to reach similar deals with other major movie studios later this year, using the Warner Bros. agreement announced Wednesday as a template." Another reason why Netflix has decided to delay the releases of new Warner Bros. movies, is so that the studio has a chance to raise their sales of the DVD's, which is "the movie industry's biggest source of profits."

here are some pros and cons that Ted Sarandos, Netflix's chief content officer states in the article.

Pros:"[it] will be good for the entertainment ecosystem",and "[it gives a] chance to boost the sales of DVDs, the movie industry's biggest source of profit

Cons: "Newly released DVDs account for about 30 percent of Netflix's shipments," this means that Netflix will be losing about 30 percent of its shipments.

Although Netflix has decided to prolong sending the new releases, Blockbuster "which has been losing ground to Netflix in recent years, intends to continue renting DVDs as soon as they are released". And why doesn't Warner Bros. ask Blockbuster to delay like Netflix? Warner Bros. "studios get a cut of revenue under their agreements with Blockbuster".