Warner Brothers has been trying its hardest to get customers to buy the DVDs of their new releases. Yet with the dawn of services like Netflix and Redbox suddenly customers didn’t need to buy DVD’s. This caused Warner Brothers to impose a 28 day delay for movies to appear in your local Redbox kiosk and Netflix envelope. Recently Warner Bros. has announced their wish to elevate this number to a 56 day waiting period. Netflix agreed to the new terms, but the same is not true of Redbox.
The red DVD kiosk company has announced they are breaking off their current agreement of direct DVD purchases with Warner Brothers. Now Redbox will purchase Warner Bros. films at normal retail prices. This will inevitably raise the operating costs of Redbox. Yet at the same time it will give them a leg up over their greatest competitor Netflix. Which could be enough to convince unhappy Netflix customers to switch over.
Source: LA Times