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$1.20 movie rental? Redbox-Warner deal expires

February 01, 2012

Warner Bros.' deal with Redbox has expired with the two companies still at odds over how long consumers should wait to rent DVDs for $1.20 a night.

As a result, kiosk rental company Redbox will have to buy Warner DVDs from retailers like Wal-Mart at a higher price but will no longer make customers wait 28 days after discs go on sale to rent them, as it did under a previous agreement with the studio.

The two sides were clashing earlier this month when Warner Bros. announced it would sell its DVDs and Blu-ray discs only to rental companies that agreed to wait until 56 days after they go on sale. Warner executives believe that the delay encourages consumers to buy DVDs and Blu-rays or rent movies via video-on-demand, both of which are more profitable transactions for the studio at a time when home entertainment revenue has been shrinking for years.

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-- Ben Fritz, Los Angeles Times

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