10 years later, why can't Netflix or a competitor work out a deal to do the same thing but streaming instead of DVD?
For example, a plan that let's you stream one new release per week.
If renting out physical media were considered a right of the copyright holder under US law, you can bet that Netflix wouldn’t have been able to come to a deal on that either.
1. https://en.wikipedia.org/wiki/Aereo#Service and https://en.wikipedia.org/wiki/FilmOn#Legal_issues
Then Netflix had to make a deal with with the studios to delay new releases on DVDs for 30 days on their rental service. So, when we were desperate to watch any new release on a Friday night, we would just go to Redbox and rent it. That made it pointless to keep the Netflix DVD service and we canceled the subscription.
Then I think Redbox was also forced to delay new releases. I’m fuzzy on timing, but I think the Redbox restriction came much later. So, no new releases on Redbox DVD either.
Now, we just rent or purchase any movie we want to watch on Prime. We’ll do a quick search if the movie is available on the other platforms and then just pay for it on Prime. $19.99 is our limit for a brand new movie. I’ll even instinctively start to just pay for a movie before I remember to check the other streaming services.
I still get the Redbox emails about new releases hitting the boxes and I always think, “We watched that a month ago.” I worry if Redbox will survive.
In ~2008 Netflix delivered DVDs by post, and the only people getting their video online were pirates and anime fans. So when Netflix approached Starz to license streaming rights nobody else wanted them, and Netflix got a great price for loads of content like recent Hollywood movies. Allowing them to offer a huge catalogue to US viewers for $10/month.
By 2012, when the contract came up for renegotiation, Hollywood had worked out that streaming rights were big business - and they figured their output was worth way more than $10/month. There were $100/month cable packages that got you less than you got from a $10/month netflix membership, that's a lot of money left on the table - so of course the deal didn't get renewed.
And Netflix has never been the same since.
[1] https://money.cnn.com/2012/02/29/technology/netflix_starz/in...