Fox, Universal new releases delayed 28 days on Netflix

Netflix customers who want to see "Avatar" or "It's Complicated" on DVD will have to wait for more than just their mailman.

20th Century Fox and Universal Pictures have signed new distribution deals with the DVD-by-mail service that include a 28-day delay on new releases.

The agreements are similar to one signed by Warner Bros. in January.

As with that agreement, the Fox and Universal deals give Netflix more favorable economic terms on new releases in exchange for the delay. The company is using the savings to acquire more movies from the two studios for its Internet streaming service, which it has said is crucial to the future of the company as more consumers switch from DVDs to digital distribution.

Fox will also provide some of its television shows to Netflix for Internet streaming for the first time.

Fox, Universal and Warner Bros. have taken the lead in publicly lambasting DVD kiosk company Redbox, arguing that low-cost new-release rentals undercut the home entertainment business. Fox and Universal are still embroiled in a legal battle with Redbox, while Warner Bros. signed a deal with the company last month that also included a 28-day delay for new releases.

Other studios are expected to follow the lead of these three and sign similar deals with Netflix and Redbox in the future. That will set up a situation in which consumers can only rent DVDs the day they go on sale from physical retailers such as Blockbuster, which recently signed deals with Warner Bros., Fox and Sony Pictures that guarantee it can offer new releases at launch.

The first new movies that will be covered by the new Netflix deals are the most popular ones released by Fox and Universal in theaters around the 2009 holiday season: "Avatar," and "It's Complicated," which will go on sale April 22 and 27, respectively.

-- Ben Fritz

Comments

[Mike F]

More movies available via streamline. The library for instant viewing to PC or TV is getting bigger And bigger. Thank you Netflix! Outstanding news.

Now we are sure to hear from some folks with their narrow minded opinion about losing ability to view new releases to Blueray/DVD for 28 days. We're talking one month here. Is that really an issue folks!? I mean c'mon... When the trade-off is many many morte movies to view instantly??

It's a GREAT trade-off. it's the best of both worlds. And it's going to keep Netflix as THE front-runner for movie provider service by mail and internet.

All of this... at no extra charge. Thanks again Netflix!

[Gary]

@Mike F: Bravo! always nice to see loyal employees.

[Doug]

I'm a huge fan of Netflix, but these deals delaying the availability of new releases is forcing me to look at other options.

[Erik]

Studios think they can keep a long-time Netflix subscriber like me from seeing their new releases for 28 days? Hmmm... how long does it take a DVD-quality rip of a new DVD release to appear on Bittorrent?

Hollywood shoots itself in the foot. Again.

[ladyofargonne]

This is a fruitless attempt by the studios to put off the inevitable. It's the audience flexing its clout that is reshaping the marketplace.