Andre Yoskowitz
1 Feb 2012 21:10
Redbox has let its current wholesale deal with Warner Bros. expire as the two companies fight over the now standard "delay window" on new releases.
In the current deal, in exchange for drastically reduced prices, Redbox would have to wait 28 days after release to make new titles available for rent. Warner, in its new deal, wanted to up the delay window to 56 days, outraging rental companies and consumers alike.
Now, Redbox will have to purchase the titles from retailers at a much higher price, but they are free to offer the movies on day one.
Redbox senior vice president of marketing Gary Cohen would only comment to say it "will work to provide Warner Bros.' movies through alternate means."
Warner shot back: "The consumer is best served by a windowing and pricing structure that ensures a healthy film business continuing to deliver quality movies. We hope to continue discussions with Redbox and reach a mutually agreed upon solution to this situation, but we fully intend to do what is best for our business, our consumers and the industry as a whole."
Rival Netflix agreed to the 56-day window, but Blockbuster did not.