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HBO Stops Supplying DVDs to Netflix: Report

In a sign that tensions are escalating between HBO and Netflix, HBO has stopped supplying discounted DVDs and Blu-ray disks to Netflix on Jan. 1 for its video rental service, according to a report from CNET, citing anonymous sources.

The shift won't have any real impact on either of their businesses, as Netflix will still be able to source the DVDs and Blu-ray disks from other sources and will continue supply DVDs and Blu-ray disks of HBO shows to its customers.

Netflix does not have streaming rights to HBO shows.

In an email, a Netflix spokesman stressed that "Netflix will continue to provide HBO programs on DVDs and Blu-ray discs to our members" but declined further comment.

HBO spokesman did not immediately return a call for comment.

The two companies have been increasingly moving into each other's businesses as HBO has expanded the online streaming of its shows through its HBO Go app and Netflix has been looking to back original series, such as Lilyhammer, which will debut on Netflix on Feb. 6. The show, which stars Steven Van Zandt, was acquired by Netflix at MIPCOM in the fall of 2010.