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Paramount to end 28-day delay window to Redbox

Paramount Pictures will no longer delay their new releases to Redbox by 28 days, reversing their recent agreement with the DVD rental chain and now allowing for DVDs to be rented the same day they go on sale.

The studio initially went forward with the delay because they felt it would help DVD sales, but that has not happened:

“There were two conclusions we came to,” said Dennis Maguire, president of Paramount Home Entertainment. “There hasn’t been a cannibalization of DVD sales from Redbox, and Redbox was allowing us to expand our business and ultimately make more money” than if the studio held back its DVDs to Redbox for a period of time.

More details from the article:

Sony Pictures previously signed long-term deals to provide its DVDs “day-and-date” to Redbox as well, and Disney offers its movies to Redbox without a formal arrangement. Tuesday’s deal with Paramount means that the six major studios are essentially split evenly in their views on working with Redbox.

Fox, Universal and Warner Bros. have signed deals with subscription DVD service Netflix instituting identical 28-day restrictions on rentals of new DVDs. Maguire said the details of any new deal his studio signs with Netflix may be different, but that his philosophical approach will remain the same.

“Those people who want to rent are going to figure out ways to rent,” he said, “and us restricting them from renting isn’t going to turn it into a purchase.”

Source: LA Times