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Netflix, Warner Bros. Reach DVD Deal

LOS GATOS, Calif. ( TheStreet) -- Netflix (NFLX - Get Report) has reached a deal to make new DVD and Blu-Ray releases from Warner Bros. available to Netflix members after a 28-day window.

"We're able to help an important business partner meet its objectives while improving service levels for our members by acquiring substantially more units than in the past after a relatively short sell-through window. At the same time, we're able to extend the range of choices available to be streamed to our members," said Ted Sarandos, Netflix's chief content officer, in a statement.

Warner Bros. Home Entertainment's "The Invention of Lying" and "Whiteout," scheduled for release on Jan. 19, will be among the first movies that won't be immediately available to Netflix's customers, the Associated Press reports.

"These new agreements build upon the strong relationship we have had with Netflix for nearly 10 years," said Ron Sanders, president of Warner Home Video. "The 28-day window allows us to continue making our most popular films available to Netflix subscribers while supporting our sell-through product."

The agreement gives the Time Warner (TWX - Get Report) movie unit a chance to boost the sales of DVDs, the movie industry's biggest source of profits, AP notes.

Terms of the deal also cover titles from Time Warner that are made available for streaming to Netflix customers.

Netflix said the deal helps it benefit from reduced product costs and better availability of new releases which currently account for about 30% of its shipments.

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