HBO stops selling DVDs to Netflix

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Associated Press

Posted on January 5, 2012 at 5:00 PM

Updated Thursday, Jan 5 at 5:02 PM

LOS ANGELES (AP) — HBO fired a shot across Netflix's bow this week, confirming it will no longer sell discounted DVDs of hit shows like "Boardwalk Empire" to the subscription video service.

The move by Time Warner Inc.'s pay TV channel is more antagonistic than damaging. Netflix Inc. can maintain its mail-order movie rental offerings by buying HBO discs from other sources —even retail stores.

HBO's jab heightens the rivalry that has steadily grown between the companies.

In December, Netflix CEO Reed Hastings told an investors conference that HBO's online viewing service, HBO GO, was "the competitor we fear the most."

Time Warner CEO Jeff Bewkes has belittled Netflix, telling The New York Times just over a year ago that it was like "the Albanian army going to take over the world."

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