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Thursday, Apr 25, 2024

Warner Bros., Redbox Reach Deal on DVD Rentals

Warner Bros. Home Entertainment and DVD kiosk provider Redbox settled a lawsuit with an agreement that Redbox will receive Warner Bros. titles four weeks after release. Redbox will receive DVDs and Blu-ray discs at a reduced cost and in sufficient quantity to stock their automated kiosks. The 28-day window gives Warner Bros. maximum time for retail sales and make titles available through other channels, such as video-on-demand. “By agreeing to a delayed release date, Redbox can now acquire Warner Home Video titles at a reduced product cost, preserving value for our consumers and increasing customer access to Warner titles at Redbox locations nationwide,” said Redbox President Mitch Lowe. Warner Bros., Twentieth Century Fox and NBC Universal cut off DVD supplies to Redbox last year in a move to reduce the $1 a day rentals from the kiosks. Redbox in turn filed a lawsuit alleging anti-trust violations by the three studios. The legal actions against Fox and NBC Universal remain pending. Warner Bros. and Redbox will begin implementing the delayed availability in March. Redbox has agreed to destroy Warner Home Video content following its lifespan in kiosks. Mark R. Madler

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