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Bewkes: Rental Delays From Netflix, RedBox Is Paying Off For DVD Sales

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Early agreements from Netflix (NSDQ: NFLX) and Redbox to delay renting new titles until 28 days after they are first available for purchase in stores is already having positive results for Time (NYSE: TWX) Warner’s film segment, said CEO and chairman Jeff Bewkes. He said that Time Warner was able to take advantage of the 28-day window for big titles and Bewkes claims that releases for The Blind Side and Sherlock Holmes sold more briskly than they might have otherwise. “Other studios that have taken advantage of the delay in rentals are seeing similar sales growth of DVDs, while other studios not using that window structure appear to be under-performing,” Bewkes said, though he did not offer specifics.

While publishing didn’t do as well as the film or network segments, there were some bright signs on advertising versus last year. In particular, digital advertising was up double digits, Bewkes said.

2 Responses to “Bewkes: Rental Delays From Netflix, RedBox Is Paying Off For DVD Sales”

  1. whocaresallie

    Thank god for Warner, Fox, and Universal. These delays are needed for the Entertainment Industry to survive. Paramount and Disney said they had seen no effects on the sell thru with their deals but anyone with any common sense allready knows that the problems with Sell thru are directly related to kiosk pricing along with Netflix. Paramount made a huge mistake by allowing access to their titles without the delay and I hope both they and Sony come to their senses.

  2. Allie Pappas

    Well, I guess that I’m the only one waiting to rent Warner Brothers movies until they drop into the Redbox. Initially, it made me angry that WB was trying to manipulate sales by withholding their movies for a month. Now, I am willing to just wait until they’re available (in the Redbox) and I avoid purchasing WB DVD’s unless I absolutely have to own them. I’m saving dollars (previous DVD purchasing addict) and I only have Warner Brothers to thank for that :)