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Netflix, Redbox reach new DVD distribution agreements with studios

Posted at 07 October 2010 04:00 CET by Randomus

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.

Movie theaters have asked movie studios not to shorten rental VOD windows, even though Warner stepped forward to say the rental windows are hurting rental kiosks.

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There are 5 comments

MyCE Resident
Posted on: 07 Oct 10 05:26
    They can extened it all they want to but that isn't going to make me run out
    and buy the movie the day it comes out for sale. I will not buy a movie with
    out renting it first because I'm not going to blow $20.00+ for some bomb of
    a movie. I rent it first and if I like it then I will go and buy it for my collection
    and if I don't like it then all I'm out is the price of the rental.

    If those dorks in Hollywood knowed how to make a good movie everytime it
    would be alright to go out and buy it as soon as it hit the store shelves. But
    as we all know that just isn't the case they might make 1 decent movie and
    then the next 4 or 5 or more are nothing more than bombs.
    MyCE Rookie
    Posted on: 07 Oct 10 05:31
      power and control is all these studios and the MPAA is about.

      From the VHS/BETAMAX nonsense to CSS to illegal DDoS attacks on filesharers, the have been trying to have a stranglehold on their content from day 1.

      Once the movie has been released I say it's fair game. These 28 day delay deals are ridiculous and will turn eager renters into pirates where they can get the movie beforehand and without all the trailers/nonsense bundled in with DVD's these days.
      MyCE Resident
      Posted on: 08 Oct 10 09:25
        I do not blame them for this because a few will then go out and buy it before they rent it but I would not. Waiting a month no big deal if I need in sooner I would just go to the local dvd store and rent it there. I do not see them so far telling the local rental stores they cannot rent it out for 30 days.
        MyCE Resident
        Posted on: 08 Oct 10 17:37
          Originally Posted by samlar
          I do not see them so far telling the local rental stores they cannot rent it out for 30 days.
          I'd have to say just give them some time and they will be coming down on the
          big chain Blockbuster / Hastings/ etc., etc. and the mom & pop rental stores on
          the 28 day rule also if they think it will help them sell a few more movies.
          New Member
          Posted on: 11 Oct 10 21:44
            I really fail to see how this will benefit the movie studios. If it is a good movie it will sell regardless. If it's stinker, well then, rest in peace.
            If they were on the ball, they would team up with the movie rental companies and work out a more profitable arrangement.
            Will I change my buying habits? Definitely not. If it's a good movie I will add to my collection, but not until I have seen it first.
            All they have done is succeeded in delaying any profits they may realize from the sale and usually by that time the prices will have been reduced.
            So, who wins here?

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