Twentieth Century Fox and Redbox Announce Distribution Agreement
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."
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.
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 www.redbox.com.
Words such as "estimate" and "expect," and variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. The forward-looking statements in this release include statements regarding Redbox's relationship with Fox relating to, among other things, a disc output lease and rental 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 Fox, including those beyond our 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 Fox, 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.
Source: Redbox Automated Retail, LLC
Posted by Shane Sturgeon, April 22, 2010 6:18 PM
About Shane SturgeonShane Sturgeon is the Co-Publisher and Chief Technologist of HDTV Magazine, an industry publication with HDTV roots going back to 1984, when Dale Cripps founded The HDTV Newsletter. Today, HDTV Magazine is a leading online resource for HDTV news and information and captures the eyes and imaginations of over 3 million visitors annually. Mr. Sturgeon has a background in information technology and has served in various consulting capacities for Fortune 500 companies such as J.P. Morgan Chase, Verizon Communications, Proctor & Gamble and Nationwide Insurance. He has a Bachelor of Science in Computer Science from Wright State University.