We are excited to bring Transform 2022 back in-person July 19 and virtually July 20 - 28. Join AI and data leaders for insightful talks and exciting networking opportunities. Register today!
DVD rental kiosk service Redbox has extended a distribution deal that will allow the company to continue renting movies from Sony Pictures to customers the same day they hit retail shelves.
Over the past year, many entertainment companies have opted to end similar licensing agreements with rental services like Redbox and Netflix. Most recently, Warner Brothers decided not to renew its deals to rent DVDs, and failed to negotiate a new deal that would force the company to wait 50 to 90 days after they hit retail stores. Of course, Redbox can still offer the new releases earlier, but to do so it has to pay for each DVD at the same price offered to consumers — meaning Redbox’s operational costs rise. (Redbox is doing this for all Warner Brothers new releases.)
Under the deal with Sony Pictures, Redbox also has the option to license Blu-ray movies from Sony through September 2014.
Making its movies available for rental immediately is a smart move for Sony; the move should keep people from pirating movies as an alternative to buying them outright at retail price. The licensing agreement is also beneficial to Redbox because it’ll keep customers happy. And with the imminent launch of Redbox and Verizon’s DVD/streaming joint venture, it never hurts to make sure there’s a wide selection of current movie titles to compete against the likes of Netflix.
Via Engadget; Image illustration via Tom Cheredar/VentureBeat
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn more about membership.