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Redbox breaks with Warner Bros. over 56-day waiting period

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Redbox has allowed its contract to purchase DVDs cheaply from Warner Bros. to expire, following Warner Bros. insistence that rental companies wait 56 days after DVD release to offer its movies.

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Redbox customers will no longer have to wait 28 days after a DVD release to rent Warner Bros. movies like A Very Harold & Kumar Christmas. Redbox has allowed its deal with Warner Bros. to expire, meaning that it will no longer be directly purchasing DVDs at wholesale prices from the company. The two companies were apparently unable to come to an agreement over Warner Bros.' insistence that rental companies wait 56 days after DVD release to offer a movie. While Warner Bros. says it hopes to "continue discussions with Redbox and reach a mutually agreed upon solution to this situation," a source has told the Los Angeles Times that no more talks are planned.

Redbox has pledged to keep stocking Warner Bros. movies, but without the agreement it will have to pay more to purchase DVDs from retailers or external wholesalers. On the upside, it's now free of its two-year-old agreement to wait almost a month after release to stock the films, giving it an advantage over Netflix, which agreed to the 56-day restriction. Although the move will drive up Redbox's operating costs, it's almost certainly better in the long run than continuing to let a direct competitor set the terms of its business.