Blockbuster gets new releases when Netflix and Redbo don't

Blockbuster gets deal that Netflix, Redbox couldn't
Warner Bros., the same movie studio that has recently announced "deals" with Netflix and Redbox to delay the DVD release of its titles for 28 days, has announced a new agreement with movie rental company Blockbuster. Unlike to its previous deals, however, the new agreement makes Warner's titles available immediately in Blockbuster's dying brick-and-mortar stores, by mail, and on-demand.

In its announcement, Warner reaffirmed its commitment to assuring that Blockbuster remains the "only multichannel provider that has every hot new movie on the day of its release." Indeed, with the agreements it struck with more innovative and competitive movie rental services like Netflix and Redbox, Blockbuster really is the only mainstream way for people to get movies on release day without buying them.

The company has been entertaining the idea of bankruptcy for close to a year now and has closed nearly a thousand stores in recent years.

Blockbuster: Warner Bros Pact Retains New-Release Advantage - WSJ.com
To capitalize on its head start for rentals, Blockbuster wants to boost the number of movie copies it has, but its cash is constrained, and studios are concerned about the health of movie-rental chains. Another movie-rental chain, Movie Gallery Inc. (MVGRQ) filed for Chapter 11 bankruptcy protection earlier this year.

Keyes said last week that one option under consideration by at least one studio was using Blockbuster's Canadian assets as collateral for inventory purchases. A Blockbuster representative on Monday couldn't immediately say whether collateral was pledged in connection with the Warner Bros. pact.

Blockbuster estimates that 60% of the $22 billion in movie rentals and movie sales at retail occur during the first 30 days after a film is released.


The Official Netflix Blog: Netflix via Wii - Coming Soon