MUMBAI: Warners will allow Blockbuster to rent its films the day they are made available on DVD giving the chain a lucrative four-week head start over Netflix and Redbox.

The pact includes three of the four distribution methods Blockbuster engages in: on-demand digital delivery, its by-mail subscription service and the old-fashioned method of renting to consumers who walk into their dwindling store locations.

Blockbuster‘s dollar-kiosks also will rent new releases from Warners -- and every other studio -- the same day the DVD hits stores.

When Redbox and Netflix agreed to the 28-day moratorium, they did so to ensure a steady flow of product at a reasonable cost. In Blockbuster‘s case, insiders said its deal with Warners was expiring, so an extension -- with modifications -- was in order.

It is said that the arrangement that extends to the end of the calendar year also doubles Blockbuster‘s in-store inventory of Warners titles.