Netflix, Blockbuster Join Redbox in Working Around Disney’s DVD Windows: Report

June 8, 2012 · Posted in M&E Daily, Today's M&E Connections 

by Terence Keegan

The news that Redbox had declined to accept a 28-day window policy from Disney for new DVD and Blu-ray releases was perhaps unsurprising. The kiosk chain has always appeared ready to source its discs from third-party wholesalers or even retail outlets if it deemed studio terms — such as Warner’s proposed 56-day window — too onerous.

But with the Los Angeles Times reporting that Netflix — as well as the Dish-owned Blockbuster chain — also has rejected Disney’s proposed supply deal for rental discs, one wonders just what (or how much) Disney wanted for new-release DVDs and Blu-rays besides a four-week embargo.

Disney, the Los Angeles Times reports, “apparently wanted more favorable terms [from Netflix] than those of its competitors.” Netflix has been more accepting of studios’ shifting window strategies than Redbox, agreeing to Warner’s 56-day embargo in January.

It’s clear that studios, at least, haven’t finished tinkering with release window terms, as they grapple with how best to bolster retail sales of Blu-ray and DVD discs. The issue is whether consumers, like rental services, are willing to pay any premium for content availability — at least in the physical realm.

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