Netflix has agreed to terms with Warner Bros. that will delay rentals of new DVD releases for 28 days. Warner Bros. has unilaterally imposed the same restriction on Redbox — and those negotiations were apparently much less friendly and involved more lawyers.
In exchange for the delay, the LA Times says Netflix got “improved financial terms, higher inventory levels and increased access to content for its online streaming service.”
“We have been discussing new approaches with Warner Bros. for some time now and believe we’ve come up with a creative solution that is a ‘win-win’ all around,” said Netflix chief content officer Ted Sarandos, who handles studio relations.
For consumers, this means that in the first 28 days of a new DVD’s release, “consumers will be able to only purchase them, download them them through Internet or cable video-on-demand services, or rent them at retail stores like Blockbuster.”