Redbox finally concedes to 28-day rental window with Warner Home Video
The war of words and legal actions has come to an end between DVD kiosk rental business Redbox and Warner Home Video, and it wasn’t the shiny red boxes that were the winners.
After what seems like a lengthy war (in reality it was only about six months), Redbox has finally given in to Warner Home Video’s wishes. Through at least 2012, Redbox will withhold Warner’s DVDs and Blu-rays from its kiosks for 28 days after the initial home video release of a title. Redbox will also agree to drop its lawsuit against Warner, and in exchange the Coinstar-owned company will receiver greater access to titles and lower prices for the discs.
“The 28-day window for Redbox balances the economics of our relationship while continuing to offer great value to their customers,” said Ron Sanders, president, Warner Home Video. “This accord establishes a mutually beneficial relationship that will foster an ongoing and productive partnership.”
“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.”
This ends a lengthy battle between the two companies that saw Warner Home Video cutting off Redbox at every turn from being able to secure copies of the latest releases. The movie studio even got retailers such as Target and Walmart to limit the number of copies that a customer could buy at any given time to cut off yet another source of films for the rental company.
With this deal in place, it isn’t difficult to imagine that similar deals will follow in short order from the other studios such as Universal Studios Home Video that is also currently feuding with Redbox.
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February 17th, 2010
Absolutely ridiculous this is! If I were redbox, I would have NEVER given in. Apparently, the purchasing of a movie does not entitle you to rent it to anyone for 28 days, as if you didn’t really own the disc you purchased.
What’s next, the video store down the street?
July 29th, 2010
No the purchasing of a movei at “discount prices” does not entitle you to rent it to anyone for 28 days. If you pay full price???