Warner’s deal with Redbox

warner brosAmidst the declining pattern of home entertainment, Warner Brothers has banged a deal with Redbox, the DVD store to protect its DVD sales.

Redbox buys DVDs of Hollywood movies and rents them at a far low discount in the stores or kiosks outside the marts and shopping malls, all across the U. S.

The rentals hit the sales of DVDs, at a much inclined margin earning huge monetary gains. Due to this, companies like Warner Bros, succumbs the supply of the discs to Redbox. Indeed Warner has crafted a unique "release window" for kiosk DVDs in a deal with Redbox which says that it shall be supplying the discs Redbox or any other kiosk operator after the 28 days have first gone for the sale.

Warner Brothers is known for its largest home entertainment business and DVD library in Hollywood. This deal will create hype in the industry which shall be led by many other agreements between the kiosk operators and the Hollywood studios as well. The deal with Warner and Redbox has been created to fetch higher margins and growth from its video on demand and digital downloading.

Now for the movie lovers who were keen to watch a film as soon as it hits the theatre can buy DVD, watch the video on demand, or either rent the DVD from chain such as Blockbuster - which will churn better margins for the studio than Redbox - or shall wait 28 days more to rent it from the kiosk operator. Warner has decided to supply more of the copies of its DVDs and Blu-ray discs to Redbox. But by agreeing to the 28 days delay from the release date Redbox will have the pleasure of having the tag of Warner at a minimal price and the deal shall preserve the tagline "value for money" and stretching the reach of Warner DVD's across the nation at varied locations.