Universal Studios Home Entertainment and Redbox Forge Distribution Agreement
UNIVERSAL CITY, Calif. and OAKBROOK TERRACE, Ill., April 22 /PRNewswire/ -- Universal Studios Home Entertainment and redbox have reached a long-term distribution agreement that will make Universal DVD and Blu-ray titles available for rental at redbox locations 28 days after release. The agreement ends the legal dispute between redbox and Universal. The announcement was made today by Craig Kornblau, President of Universal Studios Home Entertainment, and Mitch Lowe, President of redbox.
The deal provides redbox with reduced product costs and sufficient quantities of product four weeks after street date and extends redbox's access to Blu-ray titles, which redbox is testing in select markets.
The first release covered under the new agreement is the hit comedy "It's Complicated," which Universal will directly supply to redbox 28 days after the film's April 27 street date.
"While this arrangement mutually benefits our two companies, it's more importantly a win for consumers who will now have increased access to Universal films at more than 20,000 redbox locations nationwide," said Mr. Kornblau. "In forging this pact, we have successfully established balanced terms for our rental products in redbox® kiosks that provide consumers value and convenience in movie rentals."
"This agreement enables redbox to fulfill our commitment to providing consumers affordable and convenient home entertainment," said Mitch Lowe. "This arrangement allows redbox to acquire Universal titles at reduced product costs, preserving value for our consumers and increasing availability of Universal titles at redbox locations nationwide."
Redbox has agreed to remove Universal content from kiosks after their useful rental life and discontinue access via rental or sale.
Universal Studios Home Entertainment is a unit of Universal Pictures, a division of Universal Studios (www.universalstudios.com). Universal Studios is a part of NBC Universal, 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. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80%-owned by General Electric, with 20% owned by Vivendi.
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 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 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 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.
Source: Redbox Automated Retail, LLC
Posted by Shane Sturgeon, April 22, 2010 6:23 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.