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Time Warner Inc. Message Board

  • siteobserver2012 siteobserver2012 Jan 11, 2012 11:35 AM Flag

    DVD Rentals and Coinstar

    Is Warner shooting itself in the foot by delaying rentals from 28 to 56 days? First of all, the net effect will be that Coinstar and Blockbuster will do workarounds that will provide SAME DAY rentals - which is the exact opposite of the 56 day waiting period. The small extra margin offered by Warner for the 56 day waiting period is offset by the extra volume that will come from same day revenues at Coinstar. The decline in DVD sales will be made worse by Warner holding the top movie rental companies hostage...forcing them to do same day rentals. This is a highly questionable strategy.

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