Netflix Inc., the popular web-based DVD rental service has come to an agreement with Warner Bros. Home Entertainment that will put Warner Bros. Blue-Ray and DVD titles up for purchase on the site 28 days after their initial release.
Bearing in mind the tightening wallets of the public in the trying economic times and the general unwillingness to spend money on Netflix and Warner Bros. are attempted to offer a wider assortment of possibilities for at-home entertainment.
Details of the decision include Warner Bros. films being made available via streaming to Netflix customers. This part of the deal was a response to a 20% increase in streaming of either television or movies over the third quarter of 2009.
The sales-exclusive 28-day period is meant to encourage consumers to buy movies again and regain some of the profits lost by studios with the popularity of netflix and the $1 rental.
Chief content officer for Netflix, Ted Sarandos says of the deal, "We've been discussing new approaches with Warner Bros. for some time now and believe we've come up with a creative solution that is a 'win-win' all around."
The win-win Sarandos is referring to is the agreement stipulation that Netflix will faster access to the new releases that account for roughly 30% of Netflix shipments.
Shares of Netflix rose 3.2 percent with the announcement.
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