LOS ANGELES — Amid calls from some on Wall Street to choke off the supply of newly released DVDs to discount movie-rental services, Walt Disney Co. has quietly decided to raise its wholesale prices on new-release DVDs for Redbox and Netflix, according to people familiar with the matter.
The move marks a subtle shift in Disney’s relationship with Netflix and Redbox, and one that stands in contrast with most of Hollywood’s dealings with the two rental giants. Other studios have refused to supply DVDs to Netflix and Redbox until 28 days after they are released out of concern that low-cost rentals will undercut DVD sales. Disney, on the other hand, all along has been supplying Netflix and Redbox with DVDs at the same time they go on sale, albeit at a lower price.
Disney will charge Redbox, owned by Coinstar, and Netflix the full wholesale rate — as much as $17.99 — for its DVDs, the sources said. That’s more than studios often charge their largest wholesale customers and less than big retailers such as Walmart charge consumers for popular new releases. The Associated Press
