Netflix Deal

Netflix makes deal with WB to stream movies after the "sell-only" period.

The studios strategy is to keep various "windows" of release. They seem to think, and I tend to agree, the window strategy is the way to keep profits going. They are adjusting with the times, however, as DVD sales are dipping and theatrical audiences are down. It won't surprise me to soon see super early releases for movies charging $40-50 a head, they are already bumping up prices on 3D, and then they are obviously trying to carve out a "sales-only" window for streaming to avoid the audience paying $1.99 to see Avatar on the first weekend. They want the audience to spend $15 in the theater and then $15 more on the DVD before getting the $1.99 itunes or on-demand payment.