Disney raises prices for DVD rental services

Published 4:00 am Thursday, February 17, 2011

LOS ANGELES — Amid calls from some on Wall Street to choke off the supply of newly released DVDs to discount movie rental services, the 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 Inc. and Redbox Automated Retail LLC, 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.

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