Wednesday, July 28, 2010

Controlling The Competition

I have a Netflix subscription, and it is fantastic.  When I first got my subscription, I was able to get new-release DVDs in the mail the same day they came out on DVD.  Not anymore.

The studios (Warner, Fox, Universal) have all forced Netflix to sign an agreement withholding new release DVDs from Netflix for 28 days.  What happened after Neflix signed this deal?  Companies like DirecTV started airing commercials that blasted Netflix for their new-release waiting period and highlighted their ability to make new-release movies available on demand.  Apparently, this waiting period doesn't apply to video rental stores either.

Basically, there was an orchestrated effort to put chains on Netflix's ability to compete.  Who benefits?  Certainly not the customers.  Netflix's competitors benefit.  Do the studio's benefit?  It's hard to tell.  I personally will not buy any movie I have not seen first.  Competition is good.  A lack of competition only benefits those too lazy to compete.

© 2010 Nate Phillipps

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