Foundering Blockbuster was thrown a small lifeline by Warner Home Video today in the form of a new distribution deal. Under the new agreement, Blockbuster will become the only multi-channel provider to stock all major Warner releases the day they are available. Warner’s titles will be offered in Blockbuster’s stores, by-mail and digital services 28 days before they will be available from rivals Redbox and Netflix.
Blockbuster CEO Jim Keyes was enthusiastic about the new Warner deal. Said Keyes:
“This gives Blockbuster a full four-week lead before either kiosk or other subscription services can offer any Warner Bros. titles,”
Merriman Curhan Ford analyst and Redbox-watcher Eric Wold had the following to say about the agreement and its effects on Blockbuster’s chances:
“While we see this announcement as an improvement to Blockbuster’s positioning, we believe it may be too late to make any dramatic changes to consumers’ core preferences … although they could potentially benefit from consumers utilizing Blockbuster as a supplemental service if absolutely necessary before the 28 days are up,”
What do you make of this new deal, Insiders? If other studios follow Warner’s lead in propping up ailing BB, could the company actually survive? How much, if any, could this hurt Redbox and Netflix? Leave your thoughts in the comments, and then head over to TechCrunch for an interesting take on Warner’s motivation behind the deal.
(via Home Media Magazine)