Blockbuster Inc. said Wednesday that it had reached a deal for exclusive United States rental rights to movies from the Weinstein Company, whose founders created the Miramax studio and sold it to Disney.
The deal will keep all movies from Bob and Harvey Weinstein’s new production company out of the hands of Netflix, the online service that competes with Blockbuster, the nation’s largest movie-rental chain.
I’m really not sure I understand how this is possible. Doesn’t the First Sale doctrine make it possible for Netflix to buy DVDs through any legal channel and rent them to anyone it wants without having to get permission from the copyright holder?
(via Ezra Klein)