Delay in Warner Bro. Films at Redbox and Netflix
Warner Bro. is taking action and limiting the release of its films with DVD rental kiosks such as Redbox.
Reuters reports that Time Warner Inc.'s Warner Home Video "plans to deal directly from October with DVD rental kiosks and mail-order rental services, a move that may delay availability of its titles at kiosks operated by Coinstar's (CSTR.O) Redbox."
The Los Angeles Times reports that Warner Bros., in a brief statement, revealed that DVD rental kiosk companies must now wait 28 days before renting out Warner Bros. films.
This is the same type of action that prompted Redbox to file lawsuits against Universal Pictures and Twentieth Century Fox. However, Redbox has not taken legal action against Warner Bros.
Not only is the company targeting rental kiosks but also Warner Bros. is planning on tackling Netflix. The same type of regulations is set to be placed on Netflix and its competitors.
Ken Ross, Netflix vice president of corporate communications, told the Los Angeles Times: "We'll evaluate the current proposal and discuss it with the studio, which is what we've always done."
