Redbox deal with Fox puts a 4 week hold on new releases, starting with Avatar

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Richard Lawler
April 24th, 2010
Redbox deal with Fox puts a 4 week hold on new releases, starting with Avatar
Consider that Redbox / Fox lawsuit cancelled -- as well any plans you had to watch Avatar this weekend for a buck a day. Under their new distribution agreement (starting with this week's blockbuster flick) the movie maker will directly supply Redbox but only 28 days after a movie is released and with the directive they will not be resold later. No real surprises here considering the recent slew of similar agreements affecting our favorite budget rental options, including the note that this applies to Blu-ray discs as well, with no word when they will be available outside of "testing in select markets." It's cool, we were just waiting to watch The Blind Side this weekend anyway.

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Twentieth Century Fox and Redbox Announce Distribution Agreement

Agreement Creates 28-Day Release Window for DVD and Blu-ray Titles

LOS ANGELES and OAKBROOK TERRACE, Ill., April 22 /PRNewswire/ -- Twentieth Century Fox Home Entertainment and redbox announce a multi-year distribution agreement that will make DVD and Blu-ray titles from Fox available for rental at redbox locations following a 28-day window from the home entertainment street date for new Blu-ray and DVD film releases. The agreement also ends the legal dispute between redbox and Fox.

Under the agreement redbox will receive improved economic terms and may offer Fox product four weeks after street date. The agreement also extends redbox's access to Blu-ray titles, which it is testing in select markets. The first windowed release covered under the new agreement is AVATAR, which Fox will directly supply to redbox. Redbox also agrees to destroy DVDs and Blu-ray discs following their lifespan in the rental kiosks.

"Our goal is to continue to provide value, sufficient quantities and convenience to millions of consumers who frequent the more than 20,000 redbox® locations nationwide through relationships that support our business and ensure access to content," said Mitch Lowe, President of redbox. "This agreement with Fox provides redbox access to standard definition and Blu-ray titles, and helps us keep rental prices low, foster kiosk expansion and support the rollout of Blu-ray titles in kiosks the middle of this year."

"This arrangement upholds our retail and rental strategy, while allowing us to continue to deliver the best available movies and TV shows in the market to our customers," said Mike Dunn, President Worldwide, Twentieth Century Fox Home Entertainment. "We aggressively seek out ways to provide the greatest access to all our content while ensuring it makes the best sense for our business."

About Twentieth Century Fox Home Entertainment

Twentieth Century Fox Home Entertainment, LLC (TCFHE) is a recognized global industry leader and a subsidiary of Twentieth Century Fox Film Corporation, a News Corporation company. Representing 75 years of innovative and award-winning filmmaking from Twentieth Century Fox, TCFHE is the worldwide marketing, sales and distribution company for all Fox film and television programming, acquisitions and original productions on DVD, Blu-ray Disc Digital Copy, Video On Demand and Digital Download. The company also releases all products globally for MGM Home Entertainment. Each year TCFHE introduces hundreds of new and newly enhanced products, which it services to retail outlets from mass merchants and warehouse clubs to specialty stores and e-commerce throughout the world.

About Redbox

Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 500 million DVDs and is available at more than 20,000 locations nationwide, including select McDonald's restaurants, leading grocery and convenience stores, and Walmart and Walgreens locations in select markets. For more information, visit
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