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Blockbuster gets exclusive window on IFC titles

By Susanne Ault -- Video Business, 3/5/2008

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MARCH 5 | IFC Entertainment will release its titles only to Blockbuster for their first 60 days, with the exclusive spanning sell-through as well as physical and digital rental. In return for the market-wide lock on IFC fare, Blockbuster will support the mostly under-the-radar films with in-store and online promotion.

The deal is similar to the exclusive direct sales relationship Blockbuster struck with The Weinstein Co. in late 2006 but goes further to preserve Blockbuster's exclusivity by also keeping the titles from sell-through outlets and digital distribution. Titles from both TWC and IFC are distributed by Weinstein-owned Genius Products.

"We're trying to help make that [deal] meaningful for Blockbuster given the commitment they've made to us," said Lisa Schwartz, senior VP of sales and business development for IFC.

Under the two-year deal, IFC is granting Blockbuster exclusive rights to both physical and digital rental distribution and retail sales for the first 60 days of titles’ street dates.

After those two months, IFC titles will be offered widely for digital distribution and physical sell-through. However, Blockbuster will keep exclusive physical rental rights for IFC titles for three years after each street date.

"This agreement provides Blockbuster a true 60-day rental window, meaning outside of Blockbuster there will be no other rental during this time for each IFC title as it streets," said chain spokesman Randy Hargrove. " There will also be no retailers selling these titles. During this time IFC titles will only be available for rental through Blockbuster's thousands of stores, our by-mail subscription service and our digital downloading service, Movielink."

The first IFC title released under the deal was Jeff Garlin's I Want Someone to Eat Cheese With, which streeted last month. Upcoming IFC titles bowing under the Blockbuster agreement are Gus Van Sant’s Paranoid Park and Julianne Moore-starring Savage Grace. Others included in the initial batch are Hannah Takes the Stairs directed by Joe Swanberg and Dans Paris directed by Christophe Honore. Exact street dates haven’t been specified. Some films are still premiering in theaters, including the March 7 bow of Paranoid Park.

As IFC is distributed by Genius Products, the deal essentially represents an extension of the similar deal between TWC and Blockbuster.

In that Genius/TWC/Blockbuster alliance struck last year, TWC aimed to solely have its titles rented at the chain, for splashy promotion in return. But because TWC widely offered its titles via Genius for sell-through, the effectiveness of its Blockbuster plans was deemed questionable. Many rival rentailers, including Netflix, are able to purchase copies for quick turnaround rental to customers, often on the title’s exact street date.

TWC distributor Genius Products did try to enforce Blockbuster’s rental exclusivity with on-disc warnings that tried to dissuade consumers from renting titles at rival outlets. A consortium of indie rentailers, including the National Entertainment Buyers Group, even attempted to sue TWC and Genius over such tactics, but was ultimately unsuccessful.

Blockbuster film product director Keith Leopard said, “This agreement with IFC is a great opportunity for Blockbuster to provide our customers with convenient access to the best of independent film. Whether it’s through our stores, through the mail or through digital downloading, our customers will have access to some of the most exciting, thought-provoking films the indie filmmaking world has to offer. We look forward to working with IFC to dramatically expand our selection of independent titles and to being the exclusive rental outlet for films that otherwise might not have gotten exposure to such a broad audience.”

IFC and Blockbuster will share in all rental revenue. Additionally, Blockbuster has installed indie film sections in 1,000 locations that will spotlight IFC product as well as other arthouse films. Blockbuster also will market IFC titles at its Web site and at Movielink.


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