Redbox has now reached a long term distribution agreement with Universal Studios and 20th Century Fox to make DVDs and Blu-Ray titles available in its kiosks 28 days after their home video release, following in the footsteps of Warner Bros. This ends a legal dispute between the studios and Redbox, who say that they were fighting for this waiting period to prevent the discount rental chain from eating away at their higher margin DVD sales and rentals from other chains.
This is similar to many of the deals the studios have made with Netflix as well, so expect to be able to rent Avatar and future release The Wolfman 28 days after their release date in the home video market.
Just like the deal with Netflix, Redbox President Mitch Lowe has stated that this distribution agreement ensures other DVDs and Blu-rays from these studios and allowing to keep the $1 a day rental fee. With this new deal in place, Redbox has said they would drop its lawsuits with Universal and Fox.
What do you think about this huge deal in the rental world? Are you willing to wait 28 days for a new release to watch or will you instead just end up buying a film before renting it in the first place?
Source: LA Times