Following the model set by Warner Home Video early this year (see Blu-ray.com,
January 6), Netflix has struck deals with Universal Studios Home Entertainment and 20th Century Fox Home Entertainment covering the distribution of new release DVD and Blu-ray titles from both studios at Netflix. Those will be made available to Netflix members after a 28-day window, giving the studios a dedicated time period for sales.
Netflix receives the benefits of reduced product costs, significantly more units and better in-stock levels four weeks after street date.
"As the home entertainment market continues to evolve, we're exploring new and creative approaches to distribution with our key studio partners," said Ted Sarandos, chief content officer for Netflix. "Our intent is to forge agreements that make sense for the companies involved and that, on the whole, improve the consumer experience and the movie ecosystem. We believe the Universal deals accomplish that."
"We're extremely pleased to have reached this mutually beneficial arrangement that will allow Netflix subscribers to continue enjoying Universal's film content on DVD and Blu-ray," said Craig Kornblau, president of Universal Studios Home Entertainment.
The first release covered under the new agreement is the comedy
It's Complicated, which will be available to Netflix subscribers 28 days after its April 27 street date.
The Wolfman, with a release date of June 1, will also be affected by that delay.
Netflix assures that new releases "will continue to represent an important component" of its service, and deals such as these with Universal will allow Netflix to be better in stock on new releases after a brief window "while continuing to enhance the scope and attractiveness of the streaming content Netflix members receive."
Update
Reuters is reporting that Netflix has struck a similar deal with Fox, which will affect future new releases from the studio, including
Avatar, which will be avalable to rent at Netflix from May 20, after its April 22 DVD/Blu-ray release date.