not supplying DVDs directly to its rival Netflix, Warner Bros. is apparently flexing its muscle by working out agreements that will keep new release movies away from Blockbuster, Netflix and Redbox renters. This news comes from anonymous sources dropping a dime in the ear of AllThingsD's Peter Kafka, who reports the arrangements will be announced at CES, not long after Warner extended the window for Blockbuster to match the other two. This news comes at the same time Time Warner's CFO John Martin remarked upon "alternate" distribution channels as a way for it to move through a more challenging home video market. That means the company is focusing on things like day-and-date VOD releases with disc which it's seeking to protect from competition by cut-rate rental services like these three, likely by leveraging their desire for content to feed streaming movie offerings. According to Home Media Magazine, he believes the industry has "got to embrace these higher margin opportunities" -- which is probably going to leave just the older flicks in its 7,000 movie deep library for the rest of us trying to watch via subscription or $1~ rentals.
Update: Bloomberg reports Redbox has denied reaching any revised agreement, and that its deal with Warner still calls for a 28-day delay only. We'll likely find out what the deal is in a few days, so stay tuned.