Time Warner May Consider Longer Delay for Netflix, Redbox

Time Warner may consider extending the 28-day additional release window delay for new release movies. In recent days, Time Warner has allowed rental services such as Netflix Inc. and Coinstar Inc.’s Redbox kiosks to receive its DVDs 28 days earlier than content can be streamed to online viewers.

Time Warner apparently sees evidence that the 28-day delay has the expected effect: it pushes users to other modes of consumption, such as buying a DVD, which is probably the key upside for the studio. And that has Time Warner taking a look at the merits of a longer release window for streaming access.

“So far the 28-day window has clearly been a success versus no delay,” Time Warner Chief Executive Officer Jeff Bewkes says. “The question of whether we ought to go longer is very much under scrutiny. It may well be a good idea."

All of this is important for video distributors as the release window--the amount of time lapsing between the end of theatrical exhibition and first availability through other channels--largely determines the volume of buys or rentals and the prices at which views cost. Delaying online viewing appears to have the effect of increasing DVD sales.

Time Warner May Consider Longer Delay for Netflix, Redbox - BusinessWeek