Netflix Moving to Generic Discs.

Now we know the story behind those gray, generic-looking,
Netflix-branded, "for-rental-only" DVDs:

*** *** ***

NOV. 19 | Netflix has begun sending out films to its customers on
generic-looking discs--made by Warner Home Video and other unnamed
suppliers--that are said to be more durable than discs sold through to
consumers.

The gray-colored discs have the movie title on them with a Netflix stamp
and the words "For Rental Only."

Studio sources claimed Netflix requested the discs as a way to trim
costs.

But a Netflix spokeswoman said the company takes whatever it gets from
the studios and had made no special requests for the discs.

The gray discs are made for the rental market to be more durable than
those sold at retail to consumers, she said.

She did not say which suppliers are using the discs, but neither Buena
Vista Home Entertainment, 20th Century Fox Home Entertainment, Paramount
Home Entertainment nor MGM Home Entertainment are doing so.

Netflix users have reported on Web logs that they began receiving the
gray-colored, generic discs during the last few months on releases
including TV series The O.C.

One major studio exec said Netflix and other online retailers also have
asked for one-disc releases of special editions, rental packaging and
other changes that would cut costs in buying the films from the studios.

Netflix has told studios most customers aren't interested in renting
bonus discs and the rentailer thus doesn't want to buy large numbers of
special edition packages if it doesn't have to, the studio source said.

Paramount, MGM and other major studios began shipping movies out in
customized rental packaging this summer to Netflix, Blockbuster Video
and Hollywood Video.

Also last week, Netflix stock enjoyed a nice market rise after the
company upped its subscriber forecast for the fourth quarter.

Netflix now expects to end the quarter with between 2.45 million and
2.65 million subscribers, up from previous projections of 2.3 million to
2.5 million.

However, the company trimmed its earnings outlook due to increased
subscriber acquisition costs.

Netflix now is projecting net income to range between $2 million and $5
million for the quarter, down from a previous range of $2 million to $6
million.

http://www.videobusiness.com/article...2&catType=NEWS

One-Shot Scot

In article <yLKdnZoh5sxxwALcRVn->,
"One-Shot Scot" <> wrote:

> The gray discs are made for the rental market to be more durable than
> those sold at retail to consumers, she said.

They're also, on occasion, double-sided discs with the Netflix logo
covering up the side not containing the main feature. Very annoying!

Urra Dipschitt

On 11/20/2004 9:18:03 AM, Urra Dipschitt wrote:

> In article <yLKdnZoh5sxxwALcRVn->,
> "One-Shot Scot" <> wrote:
>
>> The gray discs are made for the rental market to be more durable than
>> those sold at retail to consumers, she said.
>
> They're also, on occasion, double-sided discs with the Netflix logo
> covering up the side not containing the main feature. Very annoying!

I don't get it. If these discs are specially made for Netflix, why would
they be double-sided with a logo covering up one of the sides?
--
"I know a taxidermy man back home. He gonna have a heart attack when he
see what I brung him!"

Tarkus

In article <>,
Tarkus <> wrote:

> I don't get it. If these discs are specially made for Netflix, why would
> they be double-sided with a logo covering up one of the sides?

You're right. What I should have said is the normal double-sided
releases are either pressed one-sided or silk-screened on the other
side. I don't actually know which one they do not being in the industry.
Either way, it's less content for renters than you would get if you
purchased the disc. Perhaps that's the studio's logic in doing this.

Urra Dipschitt

"Tarkus" <> wrote in message
news:...
> On 11/20/2004 9:18:03 AM, Urra Dipschitt wrote:
>
>> In article <yLKdnZoh5sxxwALcRVn->,
>> "One-Shot Scot" <> wrote:
>>
>>> The gray discs are made for the rental market to be more durable than
>>> those sold at retail to consumers, she said.
>>
>> They're also, on occasion, double-sided discs with the Netflix logo
>> covering up the side not containing the main feature. Very annoying!
>
> I don't get it. If these discs are specially made for Netflix, why would
> they be double-sided with a logo covering up one of the sides?

Re-read the article.... "Studio sources" claim Netflix has requested the
disks. A "Netflix spokerson" claims Netflix "has made no special requests
for for the disks".

Nonymous

On 11/20/2004 10:43:37 AM, Urra Dipschitt wrote:

> In article <>,
> Tarkus <> wrote:
>
>> I don't get it. If these discs are specially made for Netflix, why would
>> they be double-sided with a logo covering up one of the sides?
>
> You're right. What I should have said is the normal double-sided
> releases are either pressed one-sided or silk-screened on the other
> side. I don't actually know which one they do not being in the industry.
> Either way, it's less content for renters than you would get if you
> purchased the disc. Perhaps that's the studio's logic in doing this.

From what I gather, reading the article posted, it's by design in order
to reduce costs to Netflix. So presumably the studio will charge less
for these single-sided discs. And apparently, Netflix's customers
haven't shown a lot of interest in special edition content (at least when
it's on a separate disc/rental).
--
"I'm scared to close my eyes. I'm scared to open them."

Tarkus

"Tarkus" <> wrote in message
news:f7valdscnwxl$....

[snippage]
>And apparently, Netflix's customers
> haven't shown a lot of interest in special edition content (at least when
> it's on a separate disc/rental).

Yeah, but sometimes the Netflix single-sided disc is just one side of what
retails as a DVD-18, particularly with TV season sets like The West Wing. In
the retail package, one disc has 6-8 episodes; from Netflix it has 3-4, and
you have to rent twice as many discs.

RichC

Rich Clark

> Netflix has told studios most customers aren't interested in renting
> bonus discs and the rentailer

"Rentailer?"

RichC

Rich Clark

On 11/20/2004 2:16:00 PM, Rich Clark wrote:

> Yeah, but sometimes the Netflix single-sided disc is just one side of
> what retails as a DVD-18, particularly with TV season sets like The
> West Wing. In the retail package, one disc has 6-8 episodes; from
> Netflix it has 3-4, and you have to rent twice as many discs.

But you pay more for that second side, whereas Netflix only charges for a
single rental. In effect, the DVD-18 is equivalent to two DVDs, but you
only want to pay for one. So I can see why they do it that way.
--
"That movie has warped my fragile little mind."

Tarkus

In article <>, Tarkus
<> wrote:

> On 11/20/2004 2:16:00 PM, Rich Clark wrote:
>
> > Yeah, but sometimes the Netflix single-sided disc is just one side of
> > what retails as a DVD-18, particularly with TV season sets like The
> > West Wing. In the retail package, one disc has 6-8 episodes; from
> > Netflix it has 3-4, and you have to rent twice as many discs.
>
> But you pay more for that second side, whereas Netflix only charges for a
> single rental. In effect, the DVD-18 is equivalent to two DVDs, but you
> only want to pay for one. So I can see why they do it that way.

OTOH, they have to mail you two disks and that's their main cost. If
they only mailed you one but it still took you 8 hours to watch it, it
would save them money

--
Chris Mack "Refugee, total ****. That's how I've always seen us.
'Invid Fan' Not a help, you'll admit, to agreement between us."
-'Deal/No Deal', CHESS

Invid Fan