Redbox has called it quits with Warner Brothers due to the movie giant’s ongoing delay of DVD rentals.
In an attempt to boost lackluster DVD and Blu-ray sales, Warner Brothers has been coming up with new ways to annoy consumers so that they will return to purchasing instead of renting. To this end, the studio has been going to the major rental companies – Netflix, Redbox and Blockbuster – and telling them that in order to continue receiving their favorable pricing, they must agree to extending the current 28-day rental delay window to 56. Netflix has already signed off on this new deal, and even went so far as to agree to not even allow customers to put a movie in their queue for the first four weeks.
According to the Los Angeles Times, Redbox decided to go another route and told the studio to take a hike.
Redbox allowed its current agreement with Warner Bros. to expire on January 31, and according to the newspaper, would not be pursuing a new one as it would require them to agree to the 56-day rental window. Gary Cohen, Senior Vice President of Marketing and Customer Experience at Redbox said, “Redbox will continue to provide our consumers with affordable access to new release movies from all major studios including Warner Brothers at our more than 28,000 locations nationwide.” He went on to add, “We will work to provide Warner Brothers’ movies through alternative means. Redbox maintains direct working relationships with every other major studio.”
As Redbox will no longer be working with Warner Brothers directly to get the newest releases, this means they will be freed up from any sort of rental delay, which is something that could make up for the higher prices they will inevitably have to pay to procure the content. This will also give them a distinct advantage over Netflix, which is now stuck with the 56-day rental window agreement. Since Rebox just extended its agreement with Walmart that ensures kiosks in 3,700 stores through January 2015, perhaps those two companies can work out some sort of agreement.
Blockbuster has also decided to let its agreement with Warner Brothers lapse and plans to obtain the discs from other sources, allowing the one-time titan of the video rental industry to also bypass the rental delay window.
[via Los Angeles Times]