The Los Angeles Times is reporting that Warner Brothers will be delaying release on Netflix by four weeks. It is a silly move to try and squeeze more money out of consumers at a time when most consumers don’t have lots of extra cash to spare.
From the article:
“Within the home entertainment category, we’re creating different times at which a product is available at different prices,” said Kevin Tsujihara, Warner Bros.’ home entertainment president.
I place my bet on this being a total wash financially. Whatever money they gain from the few customers who are willing to pay the premium they’ll loose to illegal downloads. This is also a great move to anger and alienate their customers.
It is amazing that a company can create a strategy that is hostile to customers and simultaneously complain about things like piracy (which are in part an issue of customer loyalty). It seems that Warner Brothers doesn’t understand some of the fundamental changes in technology and culture that effect their business. This is yet another issue of boneheaded money grabs which make life more difficult for legitimate customers and much much easier for people who don’t pay a penny.