Netflix will hold new DVD releases from Sony for 28 days before offering them for rent in movie kiosks across the United States. Sony previously forced Redbox into a similar agreement in July 2009, but each company has reached customized distribution agreements on individual bases.
As Netflix and Sony finalized their deal, it was also disclosed that Blockbuster Express kiosks will delay new releases from Universal Studios, as Redbox and Blockbuster Express dominate the DVD rental market.
Blockbuster Express kiosks, operated by NCR, also agreed to a 28-day sales window in an effort to better compete with streaming and by-mail movie services. Meanwhile, movie studios are increasingly worried that the $1 daily DVD rental market will cut into movie sales. The sales window also gives these companies additional time to sell movies at a time when streaming content, movie piracy, and other issues plague
Redbox has agreed to delay new movie releases from Fox, Universal and other movie studios, with Blockbuster rental kiosks suffering the same fate. It’s a shame that these 28-day rental windows exist — especially for movie viewers looking to watch a movie without buying it or paying $3.99+ to stream it.
Netflix has deals in place with 20th Century Fox, Warner and Universal, but includes a certain twist that Redbox currently doesn’t have access to. The Netflix agreements with movie studios include streaming distribution deals that Redbox has struggled to keep up with. However, the Blockbuster Express deal will include limited testing for DVD rentals at higher prices.