MUMBAI: Blockbuster has struck a deal with Warner Bros., Sony and Fox giving a first lien of its Canadian assets in exchange for day-and-date delivery of DVD rentals for films from those studios as well as payment terms that are suitable for Blockbuster.

Blockbuster is doing what it can to avoid bankruptcy while studios seem eager to help out. Warners had already said that it was giving films of Blockbuster 28 days before Netflix and Redbox and altering payment terms to relieve Blockbuster of some financial burden during the near term, while making it up to studios in the long term.

Sony and Fox are following suit, though exact terms of the deal is not yet known.
The first two films under Blockbuster‘s new arrangement with Warners are The Blind Side and Sherlock Holmes.

Arrangements that guarantee Blockbuster can rent films the day they go on sale is a big deal, given a trend of holding back new releases from Redbox and Netflix, the competitors of Blockbuster.