October 6, 2010 / 6:49 PM / 10 years ago

Netflix and NCR reach DVD distribution deals

* Netflix, Sony in distribution deal

* Netflix to rent Sony films 28 days after release

* NCR, Universal in similar deal for Blockbuster kiosks

LOS ANGELES, Oct 6 (Reuters) - Netflix Inc (NFLX.O) on Wednesday said it reached a deal to rent Sony (6758.T) movies 28 days after they go on sale, while NCR (NCR.N), which rents DVDs at nearly 7,000 Blockbuster kiosks, reached a similar deal with Universal Studios.

NCR said it reached a studio distribution deal with General Electric Co’s (GE.N) Universal, also agreeing to wait 28 days after the Universal movies go on sale.

A spokesman for NCR said it was working with many studios for further such deals as it ramps up the Blockbuster kiosks to compete with Coinstar Inc’s (CSTR.O) Redbox kiosks and Netflix.

Studios are seeking deals requiring Redbox and Netflix to wait 28 days after a DVD or Blu-ray disc is released because they fear these low-cost outlets will threaten sales.

The NCR kiosk initiative represents part of video chain Blockbuster Inc’s BLOKA.PK turnaround efforts. Blockbuster filed for bankruptcy protection earlier this month, battered by online and mail-order services such as Netflix that have transformed how customers rent movies.

Blockbuster has said it plans to reinvent itself as a leaner competitor with more digital video offerings, including offerings on mobile devices and kiosks.

Netflix has been focusing on its growing streaming business. It has agreed in the past to the 28-day delay in exchange for expanded licenses to studios’ content. (Reporting by Susan Zeidler; Editing by Gary Hill)

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