Netflix joins Redbox to defy Disney's new DVD policy

Netflix is joining Redbox in defying Walt Disney Studios' attempt to stop DVD rentals for four weeks after the discs go on sale. Disney recently decided not to provide its discs to the nation's largest rental companies until 28 days after they hit store shelves, adopting a policy similar to those of 20th Century Fox, Universal Pictures and Warner Bros. (Warner's so-called "window" is even longer: 56 days). T

he studios believe the delay can help boost home entertainment revenue by steering consumers toward more profitable DVD purchases and video-on-demand rentals. Fox, Universal and Warner reached agreements with Netflix in which the rental company doesn't offer the movies to its customers until after the window. In exchange, the studios provide a healthy supply of DVDs at the end of the period at a discounted rate. But Disney and Netflix were unable to come to terms on such a deal, as the Burbank studio apparently wanted more favorable terms than those of its competitors, said a person familiar with the matter who was not authorized to discuss it publicly. As a result, Netflix is now buying copies of recent Disney releases, including "John Carter," from other retailers rather than directly from the studio. All of Netflix's copies of Disney's big-budget flop, which came out June 5, are already out to subscribers and there is a waiting list.