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Disney Raises Prices to Netflix and Redbox
Mon Feb 21, 2011 at 03:25 PM ETTags: Disney, Netflix, Redbox (all tags)
Both companies will be paying full wholesale pricing of $17.99 per title.
Disney movies are big money. Rental services know it, customers know it and most importantly Disney knows it. They don't do anything on the cheap - at least when it comes to their incredible collection of animated features.
Redbox and Netflix are starting to feel the results of that philosophy. No longer will they be getting cheap videos from Disney. Starting with 'Secretariat,' they're paying the same $17.99 as everyone else.
"Each of our studio partnerships is unique," says Redbox president Mitch Lowe. "Disney has been a consistent partner since day one, and we are proud to feature Disney titles day-and-date at our more than 26,000 locations nationwide."
It's hard to tell what kind of effect this will have on each of the companies. Redbox will likely not change its strategy too terribly much, but since Netflix seems to be steering away from physical media we could see fewer discs purchased.
Source: Home Media Magazine
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