You know Blockbuster's incredibly smug ad campaign about how they get new releases 28 days before Netflix? NOT ANYMORE! You see, in a cost-cutting move, they just agreed to deals with Warners, Fox and Universal to delay new release offerings.
Fast Company says movies from the three studios comprise nearly half of new release offerings, which means Blockbuster is not only in the same boat as Netflix, but also Redbox, the kiosk rental service. In a previous interview with Fast Company, Netflix exec Steve Swasey explained why getting the movies early wasn't an advantage, but in fact an expensive financial burden:
"Blockbuster didn't stay with new releases by choice," explained the source at the time, who is very familiar with the studio agreements with Netflix and Blockbuster. "Movie studios have Blockbuster where they want them—they know Blockbuster is not in any position to negotiate because of their financial position. The studios are getting huge payments for new releases from Blockbuster because they know the company needs them."
And if you haven't seen the commercial yet, here it is: