Netflix is clearly negotiating up a storm out in Hollywood.

Warner Home Video, Universal Studios Home Entertainment, 20th Century Fox Home Entertainment and “possibly others” are attempting to instate a 30-day embargo after new DVDs go on sale before Netflix would be allowed to start renting these films to its subscribers.

Yes, we know.  The implications are staggering… and a similar delay was recently imposed on rental kiosk operator Redbox.

Studios are clearly seeking to push lower-cost rentals out to a later date in order to realize more profits in theaters and from DVD sales.

Redbox is currently suing the studios and is apparently stocking its kiosks with DVD’s bought at retail.

That’s one way to go.

Netflix… well, they’re going another way.  Sure, they say, (we imagine).  We’ll go for the thirty day embargo… but you guys have to pony up some serious discounts to make this deal interesting.  Say… 50%!

There must be a lot of studio execs squeezing stress balls and yelling into their headsets while strolling on their in-office treadmills over this deal.

Apparently, no studio has accepted yet.  And we kind of hope they never do… Enforcing a 30-day embargo on movie rentals seems like the worst kind of market cannibalism.

It’s an interesting question, though.  Would you be more likely to see a movie in the theater or buy the DVD if rentals were pushed back another month?

[via Video Business via paidcontent.org]

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