Bloomberg News

Hollywood Studios Said to Study 60-Day Ban on New DVD Rentals

November 01, 2011

Oct. 27 (Bloomberg) -- Some of Hollywood’s largest movie studios may seek to impose a 60-day delay on DVD rentals on the largest services including Netflix Inc. and Coinstar Inc., four people with knowledge of the situation said.

Executives are discussing the idea internally and haven’t made any decisions, said three of the people, who weren’t authorized to speak publicly. Kevin Tsujihara, president of Warner Bros. Home Entertainment, told the Financial Times yesterday the studio wants to lengthen the current 28-day delay.

Hollywood studios are searching for ways to bolster DVD sales and purchases for online viewing, in part by delaying the availability of newly released DVDs for rent or by subscription.

Warner Bros. said yesterday it won’t supply the latest DVDs to Dish Network Corp.’s Blockbuster chain after the two sides clashed over a 28-delay on new-release rentals sought by the Burbank, California-based studio, part of Time Warner Inc.

Warner Bros., Comcast Corp.’s Universal Pictures and News Corp.’s Fox already impose a 28-day rental delay on Netflix and Coinstar Inc.’s Redbox.

Marci Maule, a spokeswoman for Bellevue, Washington-based Coinstar, declined to comment. Joris Evers, with Los Gatos, California-based Netflix, didn’t immediately respond to an e- mail seeking comment.

--Editors: Rob Golum, Anthony Palazzo

To contact the reporters on this story: Ronald Grover in Los Angeles at rgrover5@bloomberg.net; Michael White in Los Angeles at mwhite8@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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