Warner Home Video Rethinks Netflix, Redbox Strategy

BURBANK: Warner Home Video (WHV) says it will limit its new-release rentals at DVD kiosk company Redbox and is changing its policy with mail-order subscription service Netflix.

WHV didn’t mention Redbox and Netflix in its brief statement late yesterday, just announcing that it had informed its wholesalers that as of October, it would engage in direct relationships with "kiosk and mail-order subscription vendors." For kiosk companies, WHV is putting into place a 28-day window before releases are made available after being launched at retail. Warner Bros. joins Fox and Universal in placing limits on new releases to Redbox, which rents DVDs for $1 per night via kiosks across the country. (Redbox filed suit against Fox earlier this week because of this restriction on new releases).

For mail-order subscription services, such as the popular Netflix, WHV is offering the option of a day-and-date revenue sharing plan.