Warner just released some of their new plans for distributing DVDs, and it looks like they are going to do things a little differently.
Warner is telling its wholesalers that they will no longer be allowed to sell to kiosk and mail-order companies, and that Warner will deal directly with them from now on. The problem is, they are saying they will not supply kiosk companies with DVDs until 28 days after their release.
Through a direct relationship, WHV can ensure that its titles are available through a variety of distribution models to serve all types of consumer preferences. WHV will be in discussions with both kiosk and mail-order subscription vendors, offering business options that will allow all parties to grow their respective businesses. The options offered to kiosk vendors will include a 28-day window, while mail-order subscription customers will also have a day-and-date revenue sharing option. Additionally, WHV has revised their wholesaler terms to prohibit the purchase and sale of WHV previously viewed product.
So, while this is a different approach, the result appears to be the same: Redbox will have to go elsewhere to get Warner DVDs from now on in order to have their movies available on release day.
This new distribution model is set to start in October of this year.
Thoughts? Comments? Questions? Leave a comment and let us know…
Thanks to Jim and OhNoNotThemToo for tipping me off to this news.