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Disney considering 28-day rental window, because 'On Stranger Tides' was that good
That sound you can hear is the studios dashing around as they look for a new scapegoat. Disney's got Redbox and Netflix in its sights as it declares plans to impose a 28-day window before it'll make its titles available for rental. Despite conceding that the studio hadn't seen any impact on overall DVD sales, CEO Bob Iger pointed to a 16 percent drop in quarterly revenue compared to 2010 as the motivation. It's also collecting splinters in its backside as it watches to see how well digital locker service UltraViolet fares with consumers before committing to join the program. Of course, given the legitimacy of First Sale Doctrine, it's possible Redbox will do as its done with Warner titles and just buy 'em at retail -- as long as it can cover its costs as it does so.
Netflix: Warner Bros. movies now available after 56 day delay
Warner Bros. must have thought that CES was a good week to bury bad news, but unfortunately most people pay attention when you pull a move like this. Netflix has confirmed the rumor that if you wanna rent movies from the aforementioned studio, you'll have to wait 56 days, twice as long as the previous window. In the press-release (available after the break), the studio states it's doubling the window to maximize potential of its new releases. It also heavily implies that the studio was threatening to withdraw access to its library unless the rental service complied. We're keeping our ear to the ground to hear if similar announcements are forthcoming from Redbox and Blockbuster. Nothing like a little heavy-handed action to convince you that ownership truly is better than renting when it comes to DVD blockbusters, eh? Update: Redbox got back to us with an official statement: The current agreement Coinstar has with Warner Bros. is to receive movie titles 28-days after their release. No revised agreements are in place.
Warner Bros. pushing movie delays from 28 to 56 days for Netflix, Redbox and Blockbuster?
While HBO is reportedly 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.
