We Know Hollywood Is This Dumb. Et Tu, Netflix? »

My TC Post on Netflix siding with Hollywood on 30-day rental waiting period for new releases. NewTeeVee seems to think I’m wrong and that Netflix isn’t dumb for doing this. To be clear, as I say in the post, I understand why Netflix is doing this from a business perspective (only 30% of their business is new releases and their movement is towards streaming), but I still think this will backfire for everyone.

It doesn’t matter if only 30% of your actual business is these new releases, as I say, these are the glittering lures that rope in new costumers (away from old brick and mortar like Blockbuster). More importantly, taking away access to new releases for customers will bolster piracy. Mark my words. Neither of this is good news for Netflix in the long run, even if the move makes short-term business sense.

NewTeeVee also suggests that Netflix could use the better deal it gets in return to negotiate with Hollywood to get more content for streaming. Okay, but who gives a shit if it’s not new content (which Netflix streaming lacks)? And do we think Hollywood is really ready to give that to Netflix? Um, no. This entire maneuver is to prop-up falling DVD sales. Is Hollywood going to give streaming rights, something which is even faster and more convenient than by-mail DVD rentals, for its new releases? No way.

This entire thing is shortsighted on Netflix’s behalf and very dangerous.