Weinstein Co., Blockbuster In Homevid Pact

Written by: Steven Zeitchiknew for Variety

Vidtailer becomes disevid pacttrib’s exclusive rental outlet

New York- The Weinstein Company has entered an unusual deal with Blockbuster that will make the vidtailer the exclusive rental outlet for all Weinstein Company releases.
As part of the four-year pact, TWC will not make available any titles through competing rental outlets — including Blockbuster rivals Netflix and Movie Gallery — beginning in January.

Among the Weinstein Company fall releases are “Bobby,” “Shut Up and Sing” and “School for Scoundrels,” which will all fall under the deal.

In return, Blockbuster will offer front-of-store placement and other marketing exposure for Weinstein titles.

Execs familiar with the deal also said that Blockbuster will guarantee payments that amount to a certain percentage of box office, sweetening revenue pot and reducing risk for TWC.

Titles in the catalog of Weinstein-controlled Genius Products which come from non-Weinstein sources will not be affected. Genius will manage the partnership.

Deal offers titles a three-year exclusive window.

Move offers way for Weinstein to get more attention to its growing homevid catalog as it builds it with both theatrical and straight-to-video releases. Company has also been strengthening ties with retail giant Wal Mart.

For Blockbuster, its a bold and potentially pricey move for a company looking to gain any advantage over hard-charging Netflix.