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TheStreet Open House

Netflix Puts Itself at Disadvantage to Rivals

Stocks in this article: NFLX DISH CSTR

NEW YORK ( TheStreet) - Netflix (NFLX - Get Report) is once again putting itself at a disadvantage.

The company has agreed to a 56-day window on rentals of new DVDs from Warner Bros. This extends the wait time for Netflix subscribers for new releases from the studio from the current 28 days.

But rivals Blockbuster and Redbox have both refused to accept these terms. Instead, the two will buy the discs from more costly third-party providers, which will allow them to offer Warner Bros. new releases 28 days after they are released for purchase.

In response to why Netflix agreed to the new terms, spokesperson Steve Swasey said: "Netflix will continue to support our studio partner and buy directly."

Netflix is working to lessen the focus on its DVD business, instead promoting its streaming service.

- Reported by Jeanine Poggi in New York.

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