Redbox has signed a deal with Warner Bros. to delay new releases 28 days, and it's looking like the new DVD rental release window is a lot closer to becoming an industry standard.
The new arrangement provides redbox with reduced product costs, sufficient quantities of product and optimal stock levels four weeks after street date as well as extends redbox’s access to Blu-ray titles, which redbox is currently testing in select markets. The agreement also provides Warner Bros. the opportunity to maximize the sales of new release titles as well as video on demand and other forms of digital distribution.“This agreement enables redbox to fulfill our commitment to providing consumers affordable and convenient home entertainment,” said Mitch Lowe, president,redbox. “By agreeing to a delayed release date, redbox can now acquire Warner Home Video titles at a reduced product cost, preserving value for our consumers and increasing customer access to Warner titles at redbox locations nationwide.”
The deal also requires Redbox to destroy Warner titles after the rental period.
I'm still wondering if Blockbuster will find a way to hold out -- it would give them a huge competitive advantage.MovieMiguel.com
