Redbox Rejects Time Warner's Deal, Won't Wait 56 Days
Time Warner has been getting increasingly desperate in trying to salvage its sinking DVD sales flagship. First it convinced Netflix, Redbox and their ilk to sign on to a 28 day delay for its new releases, to give it some time to sell DVD’s. But the company decided to push its luck, upping the delay to 56 days, or nearly 2 full months.
While Netflix has signed on with the new deal, Redbox isn’t having anything of it. They’re just going to source their DVD’s elsewhere.
The deal is required for Redbox to be able to take advantage of Time Warner’s bulk pricing but the company clearly decided that 56 days was too long to wait for that. The company can source its DVD’s elsewhere, though retailers like Walmart have agreements with Time Warner about how many copies they can sell to one customer. All that means, though, is that Redbox employees will need to work a little harder to scrounge up as many copies as their boxes need.
Redbox was quite quick to assure the media that this in no way means that Redbox boxes will not stock Time Warner movies.
"Redbox will continue to provide our consumers with affordable access to new release movies from all major studios including Warner Brothers at our more than 28,000 locations nationwide," said the company’s Vice President of marketing and Customer Research. "We will work to provide Warner Brothers' movies through alternative means. Redbox maintains direct working relationships with every other major studio."
Time Warner maintains the same, saying that they are working to reach a new deal with Redbox. But reports seem to indicate that Redbox isn’t biting, and that the company is sick or Time Warner’s bullying.
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