Warner Bros. had made it clear last August that it was not going to let movie rental services eat into its revenues by hurting DVD and Blu-ray sales. Now, it has concluded negotiations with Netflix, the largest movie rental service, and got its way.
Netflix will only be allowed to rent out the film studio's DVD titles 28 days after they go on sale.
As for the studio's end of the bargain, it has agreed to charge a reduced fee besides pledging more of its films to Netflix for its streaming service. Other studios are also expected to reach a similar understanding with Netflix.
The four-week delay is not without precedent. Universal, 20th Century Fox and Warner Brothers had imposed exactly the same rider on the sale of DVDs to Redbox, prompting a lawsuit from the movie rental company against the three studios. “The 28-day window allows us to continue making our most popular films available to Netflix subscribers while supporting our sell-through product,” Warner Home Video president Ron Sanders said in a statement.
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