So far, Redbox has maintained that it's only willing to delay rentals of new releases a maximum of one month, but while Warner pushes for a longer window the rental kiosk chain has reached an agreement with Universal Studios Home Entertainment. The new deal keeps the delay window at 28 days, and promises to keep the discs flowing through August 2014. Despite Redbox's threat to start offering Warner movies day and date due to their dispute, so far it's still taken a couple of weeks for new releases like Harold & Kumar and J Edgar to make their way into kiosks. So far there's no word of other studios backing Warner's push for a 56-day delay between the date movies go on sale at retail and the earliest budget renters like Redbox and Netflix will offer them, which is a good sign. Not mentioned in the press release? Whether or not this deal could affect the availability of content for Redbox's internet streaming service that's on the way with Verizon.
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Redbox and Universal Studios Home Entertainment Sign Multi-Year Agreement
Redbox Kiosks Nationwide Will Continue to Offer Consumers Universal Blu-ray and DVD Titles 28-Days After Retail Release
UNIVERSAL CITY, CA and OAKBROOK TERRACE, IL--(Marketwire - Mar 1, 2012) - Universal Studios Home Entertainment and Redbox, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), announced the signing of a multi-year agreement that will continue to make Universal Blu-ray Disc™ and DVD titles available for rental at Redbox® locations nationwide 28 days following their home entertainment release. The announcement was made today by Craig Kornblau, President of Universal Studios Home Entertainment, and Galen Smith, Senior Vice President, Redbox.
"The multi-year agreement between Universal Studios Home Entertainment and Redbox represents a win for consumers, Universal and Redbox," said Galen Smith, senior vice president, Redbox. "Redbox is committed to forging relationships that provide our consumers with affordable and timely access to new release content."
The agreement extends the direct working relationship between Redbox and Universal Studios Home Entertainment through August 2014.
About Universal Studios Home Entertainment
Universal Studios Home Entertainment is a unit of Universal Pictures, a division of Universal Studios (www.universalstudios.com). Universal Studios is a part of NBCUniversal, one of the world's leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience. NBCUniversal owns and operates a valuable portfolio of news and entertainment television networks, a premier motion picture company, significant television production operations, a leading television stations group and world-renowned theme parks. Comcast Corporation owns a controlling 51% interest in NBCUniversal, with GE holding a 49% stake.
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), offers new-release DVD, Blu-ray Disc™ and video game rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 1.5 billion discs and is available at more than 35,400 kiosks across over 29,000 locations nationwide, including select restaurants; leading grocery, drug and convenience stores; select Walmart locations and Walgreens locations in select markets. For more information, visit www.redbox.com.
Certain statements in the foregoing paragraphs are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including phrases conveying expectation or intent and other expressions identifying future performance. The forward-looking statements in this release include statements regarding Redbox's relationship with Universal relating to, among other things, a DVD rental revenue sharing arrangement. Forward-looking statements are not guarantees of future performance and actual results may vary materially from the results expressed or implied in such statements. Differences may result from actions taken by Coinstar, Redbox or Universal, including those beyond Coinstar or Redbox's control. Such risks and uncertainties include, but are not limited to, the 28 day rental window, the early termination or the renegotiation on materially adverse terms of the agreement, and failure to abide by the terms and requirements of the agreement. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance, including our relationship with Universal, please review "Risk Factors" described in our most recent Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, as well as other filings. These forward-looking statements reflect Coinstar's expectations as of the date hereof. Coinstar undertakes no obligation to update the information provided herein.