Coinstar Denies Reports of Time Warner Deal
Time Warner (NYSE:TWX) is attempting to double a 28-day delay on making new Warner Bros. films available for rental in Coinstar’s (NASDAQ:CSTR) Redbox DVD rental machines, but no revised terms have yet been reached.
Coinstar today denied reports that a new accord with Warner Bros. establishing a 56-day delay for new movies would go into effect after the current deal for a 28-day delay expires on January 31. On Thursday, online technology publication AllThingsD reported that Warner Bros. had already reached a deal with Redbox, Netflix (NASDAQ:NFLX), and Blockbuster that would double the current delay.
Coinstar CEO Paul David said on an October 27 conference call that the company has “work-arounds” to obtain new release DVDs from studios that would seek to impose longer delays — the company can simply purchase the DVDs from third parties as soon as they are released for general sale to the public — but has not yet had to employ such tactics
Coinstar has 28-day delay agreements with Comcast’s (NASDAQ:CMCSA) Universal Pictures and News Corp.’s (NASDAQ:NWSA) Fox, while it has deals with Sony Pictures (NYSE:SNE), Lions Gate Entertainment Corp. (NYSE:LGF), and Paramount Pictures (NASDAQ:VIA) to obtain DVDs for rental on the same day they become available for sale.
“Some studios want a window and we try to work with them,” Davis said on the conference call. “[But] there’s a point to where it might not make sense.”
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