Redbox/Warner agreement expires, but customers benefit

Redbox has decided not to renew an agreement with Warner Bros. which allowed them to acquire movies directly from the studio. Instead, they will purchase titles “through alternative means” — meaning, retail. This might not turn out all bad though for customers, as Redbox will be able to get new movies quicker to the kiosks, avoiding the previous 28-day and now 56-day delay Warner wants to enforce. This might not be such good news for Redbox though, as their acquisition costs will most likely skyrocket. If you’re asking why Warner is extending the rental window…they’ve found retail sales of titles are more profitable. They’re also hoping customers will spend more on VOD and make use of UltraViolet copies stored in the cloud. The first title from Warner Bros. to hit Redbox kiosks the same day as retail will be “A Very Harold & Kumar Christmas.” Last month, Netflix agreed to Warner’s 56-delay, while Blockbuster will apparently go the same path as Redbox.

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