It took a couple of extra months but Fox and Universal have agreed to roughly the same deal with DVD rental kiosk company Redbox as Warner Bros. (NYSE: TWX) did in February. Both studios will now provide Redbox with “improved economic terms,” as well as additional access to Blu-ray titles, and, in exchange, Redbox will delay renting their new releases until 28 days after they are first available to purchase in stores, so that they can try to protect their sales. Redbox will also end its lawsuits against both Fox and Universal, which had become particularly ugly.
The deals come only two weeks after Fox and Universal both announced new distribution deals with Netflix (NSDQ: NFLX), which also agreed to delay distribution of their new releases for 28 days. In that case, however, both studios granted Netflix additional streaming rights in addition to improved economic terms.
With both Redbox and Netflix now agreeing to 28-day rental windows, Blockbuster (NYSE: BBI) has been trying to use the deals to differentiate itself from its rivals. It has now negotiated its own agreements with Warner Bros., Sony (NYSE: SNE) and Fox so it can rent new releases on the same day they are available for sale.