Blockbuster Signs Deal with Warner Bros. to Get New Releases on DVD Release Date

Blockbuster today announced that they have signed a deal with Warner Bros. that will give them a 28 day lead on Netflix and Redbox for new releases. 

"This new agreement reflects our strategy to be the only multi-channel provider for movies. We are excited to offer our customers the best home entertainment from Warner Bros., such as The Blind Side and Sherlock Holmes, with significantly greater availability in BLOCKBUSTER(R) Stores and through BLOCKBUSTER By Mail, as well as digitally through BLOCKBUSTER On Demand(R)," said James W. Keyes, Chairman and Chief Executive Officer, Blockbuster Inc. "This agreement reinforces Blockbuster's position as the most convenient source for new movies, and we are pleased to offer our customers the opportunity to get hot new movies as soon as they are released. This gives Blockbuster a full four week lead before either kiosk or other subscription services can offer any Warner Bros. titles."

Blockbuster posted the following image on my Blockbuster Online queue today (they shipped The Blind Side to me yesterday):

 

Does this deal make you consider switching to Blockbuster, or are you willing to wait 28 days for new releases?

Thanks to Seth, Dion, and Michelle for sending this in.

Comments

[Andrew]

I wanted to like Blockbuster, and was a customer for a a few months. I had quite a few problems. Movies taking 3+ days to get to me after they said they shipped them, movies not shipping after I returned movies, and their queue system not working well. The hassles just weren't worth it.

[ScottZ]

Why did they create the 28day delay window again?

Wasn't it to get the discs in the hands of consumers willing to pay full retail. Result, Warner Bros makes more money

But wait, Blockbuster decided to pay the fine and get the movies on the normal schedule. Result, Warner Bros makes even more money.

[Jeff Chambliss]

I think the fact that Blockbuster charges $4.99 for a rental vs $1/day (Redbox) probably has a bit to do with it also. And who knows what kind of premium they are having to pay for this.

[Me]

It's obvious the studios are going to support companies that help the entertainment industry grow. Not help companies like Netflix and Redbox who are devaluing packaged media accross the board

[goofydg1]

Someone has been betrayed.

[Joel]

I gotta admit that I pretty much only keep my Netflix account for the streaming. The dvd's sit around. I use to watch and return them asap but been too busy. As for Blockbuster I have an old store based account. I guess if I need to see something I could just walk down to the corner.

[Jason]

My BluRay players stream Netflix, not Blockbuster. I won't be switching for that reason alone.

[DeathShrike]

Well, I'm cancelling my Blu-ray support on Netflix. They won't be getting my 9 dollars a month, which only insured that I wouldn't get new releases for 4 months (Moon). I'll be taking that 9 bucks and putting it into a Blockbuster account. I spent months complaining to Netflix about how once I added Blu-ray, I was no longer receiving my new releases on time. I'm going to pay EXTRA for BDs, I don't think I should be getting a shittier service. I was even going to stick with Netflix after this "rental window" feces, but now that Blockbusters has the Blu-rays I want, for free, with no rental window, and NO DELAY compared to DVD? No brainer. Netflix... jesus christ. If it wasn't for Blockbuster's awful website, I would switch to them outright.

[Seth]

I don't read much into this.

Blockbuster is a financially unhealthy company with very little to lose. Who knows what they offered Warner? Whereas the very successful Redbox and Netflix both came to the same conclusion and deal with Warner. That's all I need to know.

It's not enough to make a difference but Blockbuster can definitely beat Netflix over the head with it for awhile. At least until they go bankrupt. Who knows what will happen after that. I assume at some point and at Netflix's option they will be able to buy Blockbuster's mail customers...

[Tim S.]

Famous Chicken Theatre is staying with Netflix.

[Brandon]

I am not planning on switching since I am not a new release person, but I have to admit that Blockbuster must have some brilliant negotiators (and/or be willing to gamble that they can survive lower profit margins by the increased rentals).

If this gets widely publicized, I could see it being a big Netflix killer for the casual new release renter as well as the hardcore segment.

[That's gotta hurt]

Blockbuster just shipped me a BluRay copy of "The Blind Side". I guess Netflix customers can enjoy streaming old classic movies for 28 days while they wait?

[Derik]

So Netflix signed on for the 28 day delay for more streaming content?

Weird. Now BB not only has releases ON TIME but they also have them streaming.

Fail Netflix. Fail.

[Sock Puppet]

Well considering that Blockbuster is paying $3 out of every $4 to have this deal and how their stock is only worth 34¢ per share...

Lets see if it has any impact on revenue, though I highly suspect it will not. The only reason WB agreed to this deal was because BB owes their vendors millions of dollars and WB wants to get as much cash out of BB before they go bankrupt.

Once again. BlockBuster business plan= Epic Fail.

[BoB]

BB = a company on the verge of bankruptcy, that has an established record of being one of the worst companies for customer service, refuses to ship from distant centers, has closed or announced closing about 1/2 of all their B&M stores (including all 3 of mine)....

Yeah, good luck with them!

[Larry Dallas]

So WB is trying to keep BB is business longer so they get some of the $$$$$$ they are owed back.

Nothing more, nothing less.

I'll wait my 28 days because I don't even notice.

[Eddie]

My two cents: New release or a movie that been release for 6months or more... it make no different. What make a different is I can stream what I want at an affordable price. Netflix is also on my xbox 360 and my blu-ray player, netflix win. If I really want the movie which is never the case, I can go down to BB to get it. Plus anyway, BB is losing money every day and 28 more days, is not going to kill anyone. My MOTTO: IF YOU HAVEN'T SEEN OLD MOVIE YET, IT NEW RELEASE TO YOU!

[Clay]

If you want to watch new releases on blu-ray, BB is the way to go. The ability to exchange a mailed disk in-store for another is nice. My local store has many releases that are on Very Long Wait at NF (specifically The Box, 2012, and Inglorious Bastards). I've already quit the $4 blu-ray add on for Netflix. I will probably lower my NF subscription to the lowest level that allows streaming.

[Nomo Blockbuster]

Warner just wanted to find a company that was dumb enough that Warner could make more money off of and it found that stupid company in Blockbuster. Blockbuster does not have and will not generate the cash to pay Warner and then Warner will send Blockbuster packing. Complete waste for Blockbuster, total inconvenience and no further value created when every customer wants the DVD that is not ever in stock.

[Frosted Flakes]

Blockbuster and Warner Bros. are two dinosaur skeletons unaware of the extinction level event which occurred with the internet and broadband. Eventually Blockbuster will turn to dust and Warner will crumble into smaller bones and then..."that's all folks!"

[bob]

It comes down to this: Netflix could have gotten the movies on release date, but they didn't feel like paying what WB wanted for the "privilege". Blockbuster, being on the verge of death and having nothing to lose, is happy to fork over whatever WB asks for in a last-ditch effort to get business.

Too little, too late, Blockbuster.

[Josh]

I can wait

[Nalez]

I have been trying to figure out how all this connects, and so far I have not been able to find much of a connection between block buster and movie studios. The only connection is that Carl Icahn, board member of BBI (with 20 million shares him and/or his holding company, and owns more shares than the CEO of BBI) also has a vested interest in Lions Gate, a movie studio. This could be what is causing the one Internet rental company, (which also has a brick and mortar operation, more profit for movie studios) to bring more market-share to online and stomp out the online competitors.

[Compare and Contrast]

Just to keep it real - the Netflix customers talk about the Blockbuster stock price, their love of streaming old content, their ambivalence to New Releases, the looming bankruptcy of Blockbuster, etc.

The Blockbuster fan-boys post about receiving new content the day it's released on Blu-ray, being able to trade a DVD at the local store, etc.

[cd]

I went from [email protected] NF to 1 the day I heard of the delay-deal. BB in-store exchange keeps me happy and getting new releases asap is important to me. Hope they can hang in there.

[Crow550]

Blockbuster needs to stay in the game, one way or another.

So good for them. I don't care for there movie selections. However for new releases. They got the best deal in town.

Does Hollywood Video get New Releases on time?

Tough times, gotta do what ya gotta do.

[eazyE]

Oh noooo Blockbuster is going bankrupt!....WHO CARES!

First of all, even if they do declare a voluntary bankruptcy it would have little affect on their online program. If anything, more movies would be available online due to stores closing.

Second, they aren't bankrupt now.... and right now, as a blu-ray renter they are the best option, and as long as they continue to be the better option I will stick with them.

I have absolutely no problem with Netflix and will gladly switch over to them if they offer me a better deal.

[Catherine]

Staying with Netflix....I am very happy with the service and this delayed dvd release will only last a while. Blockbuster is not going to be around long term. So better to stay with the ones that got it going on NETFLIX. Remember the grass is not always greener on the other side!!!

[A Movie A Day (AMAD)]

More 4 A.M. mental ramblings...

BlockBuster's plan:
1) End "The end of late fees" program.

2) Pay Warner's to forego 28 day window using money that newly reimplacated late fees provide.

3) Do the "In Your Face!" dance with ads.

And you wonder why BlockBuster and bankruptcy are two great tastes that taste great together....

[Crow550]

The 28 wait deal never bothered me. As long as it means more streaming titles and DVD/BLU copies upon the day after the wait. Then cool.

If this deal makes the studios & everyone happy including the consumer. Then great.

With that said....

If people can't wait 28 days then Blockbuster can help ya out. Maybe Hollywood Video as well? AKA Movie Gallery?

So either way the consumer is happy.

Then good, enough of this fighting of which movie rental is the best.

Find one you like OR more than one, why not spread the love?

Really just find what suits ya & enjoy the content!

Right? We don't need to flame the content providers.

Use the one or ones you like best.

[corey3rd]

But CEO Keyes is a turnaround genius! How can anyone doubt his method? If finally got the Box and the Informant.

If Keyes wants to make this deal look juicy, how about getting Warners to burn Blockbuster DVDs that don't have 12 trailers before the main menu

[BH]

I started with Netflix years ago and switched to Blockbuster a couple years ago. I just switched back to Netflix - the main reason is that they closed by B&M store in my area and I lost the exchange feature - which is the main reason I switched. I agree with other posters that things do not look good for Blockbuster!!

[things]

Saving a sinking ship by using a cup of water to get the water out.

[DeathShrike]

"The 28 wait deal never bothered me. As long as it means more streaming titles and DVD/BLU copies upon the day after the wait. Then cool."

It apparently DOESN'T mean that. I am waiting longer than ever for new release Blu-rays on Netflix. Goodbye Netflix Blu-ray charge. For the same cost of my Blu-ray fee, I get two NEW RELEASE BLU-RAYS from BB. As much as I hate the company, Netflix has given me no choice.

[Josh]

If I don't get New Release, 28 day wait or otherwise, on the fist NF release day I'm waiting on average 2-3-4 months to get the f&^%in movie. I just signed up for Block Buster online 2 week free trial, most but not all, of my very long/long/short waits are available and 3 are being shipped today. These 3 are movies that have been in my queue since Dec.

If Block Buster gets me new release within a reasonable time frame ( lol, less than 3-4 months ) I'm scaling my NF back to $8.99 membership to keep streaming and taking my DVD business to Block Buster.

Hey NF, you do a lot of things great - Streaming is an incredible value. 3-4 months for a new release is not acceptable.

[David]

I've personally become very frustrated with NetFlix. I haven't been getting any of the new releases lately! I used to use Blockbuster online and it worked well for me. However, I used to have no issues with NetFlix either. My daughter loves the streaming for the cartoons so I am unlikely to switch. However, I am thinking of joining Blockbuster as well. I am definitely not going to pay Netflix more for BluRays I will never get!

[Dee]

Hm, I'm not the type to need a movie the day it comes out, with few exceptions. But I'm not going to lie, Netflix has its problems, as does Blockbuster. When I worked at BB, I decided to sign up with Netflix over BB. And now, I still don't regret it. Yes the long waits I hear about are killer but if I need something, I reserve it via the redbox app and go pick it up. I don't need a movie more than a night b/c I will watch it right then and there. If I wasn't I wont go get it.

Hearing all these bankruptcy ramblings about BB makes me iffy to sign up with them. I know they are known for closing something with no warning (mostly their stores).

[Steve]

I had blockbuster online before I had netflix. Between the constant changes in what you got for your money and the broken queue; if you did not have an available item in the first 15 you got nothing mailed to you, I will never go back. Blockbuster can go DIAF for all I care.

[JimD]

think about it,, we don't really want BB to belly-up because then netflix would be a monopoly, raising prices and even worsening their customer service.

[Freddy Paulino]

warner bros can kiss my ass and bb is horrible

long live netflix!