Blockbuster and Warner Brothers (TWX) just signed a deal that gives Blockbuster the rights to offer Warner Bros. DVDs 28 days before Netflix and Redbox.
According to Bloomberg, the DVDs will be available for rental from Blockbuster the day they go on sale. Competitors Netflix and Redbox, however, will still have to wait a month before they can offer the titles.
Though Blockbuster recognises that in-store video rentals will soon be nonexistent, their two biggest rivals already dominate when it comes to digital downloads and vending kiosks. It will be hard for Blockbuster to successfully compete without getting competitive advantages from movie houses like Warner Brothers.
Blockbuster ended 2009 with $963 million of debt, and their revenue dropped 18% to $1.08 billion in the 4Q. In order to offset these numbers, the company declared last month it will close its 500 weakest stores and cut back on domestic advertising.
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