Redbox charges late fees

Other Legal Troubles For Redbox

Is Redbox worth the wait?

April 26, 2010, 3:43 pm

Originally posted by David Goldman - CNN Money - April 26, 2010

NEW YORK (CNNMoney.com) -- Redbox and Hollywood finally made nice last week, but their arrangement may wind up hurting the movie kiosk company more than it helps it.

Coinstar's (CSTR) Redbox inked a deal last week with Universal Studios and 20th Century Fox that finally puts an end to an almost year-long dispute over the supply and rental of new DVD releases. Under the agreement, the movie studios will supply Redbox with ample DVDs to stock their kiosks. But Redbox will have to wait 28 days after the movies' initial DVD release to get them.

Movies will still be available on DVD for $1 a day, and Redbox will also start offering Blu-ray disks. However, the company will be prevented from reselling the movies after they are removed from the kiosks. Redbox had already reached a similar deal with Warner Bros. in February. Warner Bros. is a subsidiary of Time Warner (TWX, Fortune 500), CNNMoney.com's parent company.


Redbox caves to Hollywood pressure to detriment of consumers

April 23, 2010, 10:16 am

Ending a protracted legal dispute, Redbox has reached long-term distribution agreements with 20th Century Fox and Universal Studios to make their DVDs and Blu-ray discs available in its kiosks 28 days after their home video release.

The deals, announced Thursday, ensure that popular movies such as "Avatar" and "It's Complicated" will be available through the $1-a-day rental kiosks — albeit four weeks after they're available on DVD. The studios had fought to impose a waiting period to prevent discount rentals from cannibalizing higher-margin DVD sales and rentals.


Redbox agrees with Warner Bros. on 28-day delay

February 17, 2010, 8:39 am

SEATTLE – DVD rental kiosk chain Redbox has agreed to wait 28 days after Warner Bros. releases new movies for sale before offering to rent them for $1 a night.

The agreement announced Tuesday ends a lawsuit that Redbox, a subsidiary of Coinstar Inc., filed against Warner Bros.' home video unit last August. That was its third such suit against a studio that wanted to delay cheap rentals to boost sales of DVDs, a significant moneymaker for movie studios.

Redbox said in the lawsuit that it was being unfairly prevented from buying discs from wholesalers. The company had resorted to buying new-release DVDs from retailers at higher prices to keep its kiosks stocked with new titles.

The two-year deal with Warner Bros., a division of Time Warner Inc., will lower the cost Redbox has to pay to stock its machines. Redbox agreed to destroy used DVDs after their popularity in the kiosks wanes instead of selling them for $7.


Is Redbox In Danger of Losing Workaround Solution to New Release DVDs?

January 27, 2010, 8:51 am

Originally posted by Erik Gruenwedel - Home Media Magazine - January 26, 2010

Wal-Mart Stores and Target Corp. have apparently begun limiting quantity purchases of new-release DVD movies to five copies per title — a move that further underscores an emerging sellthrough window and could pose a serious challenge to rental kiosks.

The world’s largest retailer, and Target, which represent two of the largest retailers of new-release DVD and Blu-ray Disc movies for the studios, instituted the policy Jan. 26 in time for the weekly new releases, according to Ted Engen, president of the Video Buyers Group, which represents more than 1,000 video stores.

In contrast, Best Buy typically advertises a five-copy limit on new DVD releases in its weekly ad circular.

Although representatives from Wal-Mart and Target were not immediately available for comment, Engen said he confirmed the new policy in calls with the retailers and VBG members.


Coinstar Slides On Worries Over The Redbox “Workaround”

December 7, 2009, 12:23 pm

Originally posted by Eric Savitz - Baronn's - December 3rd, 2009

If you are going to operate a nationwide chain of video rental kiosks, you need a way to get the videos to rent.

That’s the basic conundrum facing Coinstar (CSTR), as Hollywood studios attempt to limit the access of the company’s Redbox DVD rental kiosks to new releases. Redbox rents movies for a dollar a day; the studios think that practice hurts their ability to sell copies of new DVDs. Conistar has filed suit against Warner Home Video and 20th Century Fox - a separate suit on similar grounds targets NBC Universal - asserting antitrust, copyright misuse and tortious interference claims, and seeking to block the attempts of the studios to stop Redbox from renting new titles for the first several weeks after their release at retail outlets.


Coinstar: Studios Spying On Redbox Kiosks

November 19, 2009, 3:29 pm

Originally posted by Michael Cieply - New York Times - Novemeber 17, 2009

As it turns out, Fox has had a very close eye on an effort by Redbox, the operator of dollar-a-day DVD rental kiosks, to stock its movies, despite a refusal by Fox, Universal and Warner to sell new releases to the company and a pending legal fight over the dispute.

Redbox executives had said their kiosks would continue to carry Fox hits, even if that meant buying new releases at a retailer like Wal-Mart, then renting them out alongside movies from studios like Paramount and Disney, which have not blocked their releases from the cheap-rental machines.


The Future of Movie Rentals: Buy DVDs or Wait 30 DaysNovember 11th, 2009 | by Jennifer Van Grove

November 12, 2009, 9:08 am

Movie studios are none too happy by the growing decline in DVD sales. So, what’s their solution to the problem? Target the cheap movie rental companies like Netflix and Redbox and force their hand into delaying new movie rentals after release, which would give consumers no other choice than to purchase the DVDs.


Redbox Parent Posts $41.1 Million Q3 Profit

November 9, 2009, 2:37 pm

By : Chris Tribbey | Posted: 05 Nov 2009

Redbox parent Coinstar Nov. 5 reported profit of $41.1 million on revenue of $296 million for the three-month period ended Sept. 30, in large part thanks to a 75% increase in the number of Redbox kiosks year over year, and a 26% jump in per-kiosk revenue, compared to the same three months in 2008.


PHYSICAL: Coinstar unit boosts kiosk count by 75% to 20,600 units

November 6, 2009, 11:11 pm

By Danny King -- Video Business, 11/5/2009

NOV. 5 | PHYSICAL: Redbox’s third-quarter sales surged 90% from a year earlier as the largest U.S. movie-rental kiosk operator added 2,700 machines during the quarter and boosted the revenue it gets from each machine, according to parent company Coinstar.


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