News

No more 28 days later? Warner deal with redbox expires

February 1, 2012

According to the Los Angeles Times, Warner Bros.' deal with redbox has expired without an agreement between the two companies over how long to delay DVDs' availability at redbox kiosks.

Effectively, this means redbox will have to buy Warner DVDs from retailers like Wal-Mart at a higher price but will no longer wait 28 days after discs go on sale to rent them, as under its previous agreement with the movie studio:

The two sides were clashing earlier this month when Warner Bros. announced it would sell its DVDs and Blu-ray discs only to rental companies that agreed to wait until 56 days after they go on sale. Warner executives believe that the delay encourages consumers to buy DVDs and Blu-rays or rent movies via video-on-demand, both of which are more profitable transactions for the studio at a time when home entertainment revenue has been shrinking for years.

Two years ago, after a similar dispute, redbox agreed to the 28-day delay in order to buy movies directly from Warner Bros. at a discount. But redbox has concluded that 56 days is too long to make its consumers — who often look for new releases in the red kiosks — wait.

In a statement, a redbox exec said the company will look to alternate means to acquire Warner Bros. movies, and, according to the LA Times, Netflix has agreed to the 56-day delay, while Blockbuster also has balked.

Read more about DVD kiosks.