The big studios are coming to Blockbuster’s aid. Two weeks after Warner Bros. (NYSE: TWX) said it would provide Blockbuster (NYSE: BBI) with DVDs and Blu-Rays on the same day they are available for sale, Sony (NYSE: SNE) and Twentieth Century Fox say they will do the same. Unlike Warner Bros., Sony and Twentieth Century Fox have not gotten Netflix (NSDQ: NFLX) and Redbox to accept a delay on new releases. If they do so, however — as is expected — it would mean that Blockbuster would have new titles from all three of those studios for rent before its rivals do.
Sony and Twentieth Century Fox also say they will provide “new enhanced payment terms” to Blockbuster, in exchange for a “first lien” on the assets of its Canadian subsidiary.
Blockbuster says in its announcement that the agreements will “continue a steady supply of top-rated movies” and “are part of our overall recapitalization effort to drive top-line performance while reducing debt and operating costs.”
Will it be enough? Blockbuster warned last month that it might have to file for bankruptcy protection because of its heavy debt load — and one major backer, investor Carl Icahn, has essentially given up on the company.