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Studios May Initially Bar Rentals Of New DVD Releases

Let me see if I've got this right. The guys with the big cigars in Hollywood think that I'll go out and buy the DVD of "Drag Me To Hell" if they keep it away from Netflix and Redbox for a couple of extra weeks. Sure. Why not. Makes sense that I'd spend $18.49 --factoring in my 35% discount on Amazon -- after having refused to shell out $11 for a ticket at the Bijou to get a few weeks jump on viewing it as part of my $8.99 monthly subscription to Netflix.

Netflix CEO Reed Hastings says that he has discussed delayed-rental proposals with several of his biggest suppliers, who are "wrestling with declines in DVD sales while the DVD rental market has been modestly growing."

DVD purchases generate significantly higher profits than rentals and studios considering the plan are betting that a sales-only window would push some consumers who currently rent DVDs into buying them, reports Ben Fritz, who also wonders "whether consumers will go along with it."

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