Blockbuster gets exclusive from Weinsteins
Studios sigsn four-year deal for theatrical, DVD premiere rental rights
By Susanne Ault 11/15/2006

NOV. 15 | The Weinstein Co. has granted Blockbuster Video exclusive rental rights on the studio’s theatrical and direct-to-DVD titles for the next four years.

Under the pact’s terms, effective Jan. 1, each Weinstein title will be rented only at Blockbuster outlets for a three-year period. In return, Blockbuster will pay TWC an unspecified minimum guarantee based on box-office performance for theatrical titles and on acquisition costs for DVD premieres.

Blockbuster and TWC will share in resulting rental transaction revenue.

Weinstein titles will continue to be widely serviced to sell-through retail channels. Genius Products distributes all Weinstein titles for rental and sale.

“As movie lovers, we have always aimed to produce and acquire films that people will enjoy, so we feel that this agreement is a win-win for [The Weinstein Company], Blockbuster and for consumers,” said Bob Weinstein and Harvey Weinstein, co-chairs of TWC. “The unique combination of Blockbuster’s established in-store retail experience with the power of their online subscription service was one of the biggest factors that attracted us to this alliance.”

Online company Netflix has been an industry darling for some time with its innovative rental subscription service. But Blockbuster is considered to have the largest overall share of the rental industry when combining both its bricks-and-mortar and online businesses.

First Weinstein titles to be part of the Blockbuster deal include Nov. 23 theatrical Bobby, starring Anthony Hopkins and Sharon Stone; Billy Bob Thornton-headlined School for Scoundrels; martial arts flick The Protector; Beatrix Potter biopic Mrs. Potter with Renee Zellweger; and Dixie Chicks documentary Shut Up & Sing.

Additionally on deck from the Weinsteins and Genius are Grindhouse, directed by Quentin Tarantino and Robert Rodriguez, The Nanny Diaries with Scarlett Johansson and CGI family film Arthur and the Invisibles.

Street dates were not detailed.

The Weinstein agreement is the latest in a string of major moves by Blockbuster to boost its company. Earlier this month, the chain launched its Total Access program, which allows online customers to return rented titles to stores or through the mail. The program also helps customers earn free movie rentals.

Also in early November, Blockbuster began testing Blu-ray Disc and HD DVD rentals in about 250 of its corporate stores.

“As evidenced by our recent introduction of Blockbuster Total Access, Blockbuster is always looking for ways to give our customers the products and services they want and can’t find any place else, and this agreement will enable us to do just that,” Blockbuster CEO and chair John Antiocho said. “Now, as the exclusive rental provider, we’ll be the only place, in-store and online, that can guarantee customers a wide selection of The Weinstein Co. films for rent.”

Blockbuster will highlight its Weinstein DVD coup by displaying titles within in-store and online special sections. All Weinstein titles are guaranteed to be in stock, so if a DVD is not available, consumers earn a rain-check for a free rental of that film.

The chain expects to share consumer rental patterns with the Weinsteins, which the supplier will use toward creating future film projects.

“The Weinsteins are known for their innovation and marketing expertise,” Antiocho added. “We look forward to leveraging the combined power of our two brands to deliver more entertainment value to our customers.”

“As movie lovers, we have always aimed to produce and acquire films that people will enjoy, so we feel that this agreement is a win-win for [The Weinstein Company], Blockbuster and for consumers,” said Bob Weinstein and Harvey Weinstein, co-chairs of TWC.