It’s been a tough go at the DVD-by-Mail service for Netflix over the last several months, a service that was once the cornerstone of the company’s business.
First Warner Bros, Universal and Fox knocked back their release dates for cheap Redbox and Netflix DVD-by-Mail rentals to four weeks (WB dropped back to 56 days) and now Disney is considering a 28-delay of their own.
Disney CEO Bob Iger mentioned the companies possible strategy during a Tuesday investor meeting in which he mentioned that Disney is “not seeing any effect from these dollar-rentals on their sell-through business.”
Citing DVD and Blu-Ray sales as the main reason for the company’s possible decision Iger said of other company’s decision to increase delay times:
“So they’ve decided to take a step in the direction of further protecting the initial window of the sell-through,” Iger said.
Disney hasn’t finalized a decision but it’s a likely outcome as more buyers wait for rentals through Netflix mail service and via Redbox vending machines.
Do you think the entire industry is headed towards delays of 28-days or more based on declining sales and low profits from $1 rentals?