Andre Yoskowitz
7 Oct 2010 22:52
Sony Pictures Home Entertainment has made a new deal with rental giant Netflix that will block the company from getting new releases for the first 28 days after launch.
The deal follows similar agreements with the other major studios Fox, Universal and Warner Bros.
Jackie Chan's "The Karate Kid" is the first film to fall under the restriction, as it was released earlier this week.
For now, the 28-day policy is only on certain titles, but it is likely Sony will eventually extend the same deal to all new releases.
Sony's deal does not affect Redbox, however, while all the other studio's deals impose the same restrictions on the kiosk chain.
The deal works for Netflix as it significantly reduces DVD costs, leaving more money free for the company's push into digital media. The peak sell-through period for new films is in the first thirty days.