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DOW JONES (New York)--Time Warner Inc. (TWX) Chief Financial Officer John Martin said Wednesday that the media giant is dissatisfied with its business coming from Netflix Inc. (NFLX), the online DVD rental service.

At an investor conference in Marina del Rey, Calif., Martin said Netflix was "not an unimportant" distribution channel for Time Warner's film unit, Warner Bros., but "we don't think we're getting enough economics out of this particular channel."

Time Warner said in August that it's seeking new distribution deals with Netflix and Redbox, a chain of low-cost DVD rental kiosks owned by Coinstar Inc. (CSTR). The move comes as the film industry suffers a sharp decline in DVD retail sales - the industry's chief engine of profits - that many view as a permanent trend.

Warner Bros., like several other major film studios, has a revenue-sharing agreement in place with Netflix, but as the company's customer base has grown, the studio has become dissatisfied with its end of the bargain.

Meanwhile, it's seeking to impose a 28-day delay for its new releases rented by Redbox.

Martin said all the various DVD rental channels have a place in the market, but he said from Time Warner's standpoint, the industry has to put them in the right distribution window for the economics to work out.

"You have to imagine that when a consumer enters a store and sees a $1 DVD rental kiosk at the front of the store, you've got strong reason to believe that's damaging the value proposition when we're trying to sell DVDs in the back of the store," said Martin.

"We ought to be able to participate in the right way and get the right economics of our products, as the creators and owners of quality content," he added.

-By Nat Worden, Dow Jones Newswires; (212) 416-2472; nat.worden@dowjones.com