It seems that home entertainment divisions are continuing to experiment with DVD releases, this time with rentals. The Los Angeles Times is reporting that several movie studios are considering plans to delay new releases for rental by a few weeks after the DVD is sold in retailers.
The move comes as DVD sales revenue has been sharply declining recently and this seems to be the latest strategy employed to give a boost to DVD sales. If implemented, a DVD would be released for sale only for a couple of weeks before becoming available at rental stores like Blockbuster and online subscription services like Netflix.
While DVD sales have been on the decline, the rental industry has been growing, with services like Netflix, which posted a 24% growth last quarter, and dollar-a-day kiosks like Redbox on the rise. Netflix CEO Reed Hastings has said that he has been in discussions with studios about this delayed rental strategy.
"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. "One of the mitigating steps some are considering is introducing a DVD retail sales-only window for a few weeks."
It was said that such a plan could go into effect as early as next year. CLICK HERE to read the full article.