Which was fine when the DVD retail window took place after the rental window, as it did for years. Of course movie studios and distributors like the long tail but once they've recovered enough of the life time revenues they were content to let that slide.

Please see the copyright Act s109.b.1.A, which states (in part - software-specific verbiage removed): unless authorized by the owners of copyright in the sound recording ... neither the owner of a particular phonorecord ... may, for the purposes of direct or indirect commercial advantage, dispose of, or authorize the disposal of, the possession of that phonorecord ... by rental, lease, or lending, or by any other act or practice in the nature of rental, lease, or lending.

http://www.law.cornell.edu/uscode/17/usc_sec_17_00000109----...

I mean look, it's pretty clear that you can not rent audio recordings without permission (there's an exception for libraries). It's just not allowed. Now if the film industry's back is against the wall and they either make a case or lobby Congress to extend the same protection to movies, they can make two parallel arguments:

1. it's ridiculous and unfair that you should be able to prevent the rental of a movie's soundtrack on CD but not have the same control over the movie itself on DVD; and

2. while there is an explicit distinction between phonorecordgs and audiovisual works such as motion pictures (so that it can be argued the above simply does not apply), there exists a compulsory license for phonorecords - ie you can license a piece of published music for distribution whether or not the copyright holder wishes to sell it to you - hence all those awful compilation records - but there is no such right for motion pictures, and thus a distributor of same is perfectly at liberty to refuse to sell to someone, and impose contractual conditions to that effect, which is the path that Universal appears to be taking (See s.115 of the copyright act). In short you don't have an automatic right to be able to obtain a copy.

Incidentally, since you work for Netflix, and I presume your presence here means you're probably programming for them, the main complaint that I hear from distributors about Netflix is opacity - they really want better metrics, of the kind Apple supplies to their content providers. They like the checks but find it very hard to track the performance of the individual films they distribute, which in turn frustrates producers.