NOV. 30 | Netflix CEO Reed Hastings told investors Wednesday that the studios are motivated by economics to keep the DVD window in place over the next few years.
Hastings was speaking at the Credit Suisse First Boston Annual Technology Conference in Scottsdale, Ariz.
He said the DVD window won’t face encroachment from video-on-demand--which could threaten rentals--because the studios make more money on the sale of an individual DVD than they do on a VOD rental. Hastings likened the business to the publishing business, which puts out higher-priced hardcover books before it releases books in paperback.
“Why do studios care if VOD takes over rental? They don’t,” Hastings said. “They see it as equivalent. Studios care about DVD sales.”
Hastings said it’s only rational that studios would continue to put movies out on DVD before VOD to protect the $15 they make on the sale of each disc.
Market Data 
Markets 
AI
