Disney, who along with Paramount remain the only studios who still offer new releases to Netflix and Redbox the same day they go on sale, has raised the price it charges the rental outfits for the privilege.
The company will now charge Netflix and Redbox up to $18 per DVD, their full wholesale rate.
'Secretariat' was the first DVD to be hit with the increased pricing. The rental companies got the DVD for Secretariat on January 25th.
Disney has not followed in the footsteps of Fox, Universal and Warner, which have blocked Netflix and Redbox from making new releases available to customers until 28 days after they are released, a delay window long enough to appease internal concerns that the rentals hurt DVD sales on new releases.
Executives at Disney have said that they do not share those fears, especially since animated films and other family friendly Disney movies are often purchased rather than rented.
The wholesale price will drop to $10.80 per movie after 28 days.
'Secretariat' was the first DVD to be hit with the increased pricing. The rental companies got the DVD for Secretariat on January 25th.
Disney has not followed in the footsteps of Fox, Universal and Warner, which have blocked Netflix and Redbox from making new releases available to customers until 28 days after they are released, a delay window long enough to appease internal concerns that the rentals hurt DVD sales on new releases.
Executives at Disney have said that they do not share those fears, especially since animated films and other family friendly Disney movies are often purchased rather than rented.
The wholesale price will drop to $10.80 per movie after 28 days.
