“For those who like renting movies, Hollywood may soon have a message: Prepare to wait.
“In an effort to push consumers toward buying more movies, some major film studios are considering a new policy that would block DVDs from being offered for rental until several weeks after going on sale.
“Under the plan, new DVD releases would be available on a purchase-only basis for a few weeks, after which time companies such as Blockbuster Inc. and Netflix Inc. would be allowed to rent the DVDs to their customers. The move comes as the studios are grappling with sharply declining DVD revenue, which has long propped up the movie business.
“Reed Hastings, chief executive of DVD-by-mail company Netflix, revealed that he had discussed delayed-rental proposals with several of his biggest suppliers. People close to the situation at several studios confirmed that such plans were under consideration and probably would take effect next year.
“”The studios are wrestling with declines in DVD sales while the DVD rental market has been modestly growing,” Hastings said on a conference call Thursday with analysts after Netflix reported impressive 24% revenue growth last quarter. “One of the mitigating steps some are considering is introducing a DVD retail sales-only window for a few weeks.”
“DVD sales have been hurt by the recession, which has caused tapped-out consumers to opt for cheaper rentals. But Hollywood studios prefer that consumers buy DVDs because that generates significantly higher profits than rentals.”
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