) -- HBO is making it clear that


(NFLX) - Get Report

is, in fact, a rival.

According to

The New York Times

, the cable network will no longer offer Netflix deals on DVDs. Netflix will now have to pay retail price instead of wholesale for physical copies of shows like

True Blood


Boardwalk Empire


Netflix spokesman Steve Swasey declined to comment on how much of a financial hit this will be for the company, saying only that "Netflix will continue to provide HBO titles on DVD and Blu-ray to our members."

The only way for Netflix subscribers to watch HBO content via the service is through physical discs, as Netflix doesn't have the rights to stream content from the cable network.

This comes as Netflix tries to steer away from renting physical DVDs and is turning its focus to streaming.

Netflix CEO Reed Hastings has made it clear that HBO is one of the service's biggest competitors. "We fear HBO Go the most," Hastings said at UBS' Global Media and Communications Conference in December, praised the cable giant's HBO Go service.


Reported by Jeanine Poggi in New York.

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