Netflix agrees to Warner plan for 28 day rental window
In a move inspired by the movie studio war on Redbox, Netflix has agreed to withhold Warner Home Video releases from rental for 28 days after initial release.
Netflix has reached an agreement that will see the popular rent-by-mail service withholding Warner Home Video releases from its customers for the first 28 days after initial DVD release. This is a move by the video industry to try to bolster lagging retail sales of its discs that fell 13 percent in 2009. It is also one of the cornerstones of the fight between the Hollywood studio and DVD kiosk operation Redbox.
In return for the agreement, Netflix will be able to purchase films at a lower price, meaning the company will be enable to increase its inventory on new releases, especially in the Blu-ray category. The company will also receive permission to add more titles from the Warner Home Video catalog to its streaming film service.
No word yet on if other studios are courting Netflix with similar deals.
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