Paramount works a deal with Redbox.
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Studio will give kiosks DVDs through end of year in exchange for rental data
By Marcy Magiera -- Video Business, 8/25/2009
It�s official: Tally four studios for Redbox, three against�At least for now.
Redbox parent Coinstar said today that it has signed a trial revenue-sharing license program with Paramount Pictures under which the studio will make its DVD releases available on street date to the kiosk operator through 2009.
The studio will receive detailed rental data from Redbox, which it will use to evaluate whether to distribute its titles to the kiosks in the future. Paramount has the right to extend the deal through 2014, according to a Coinstar filing with the SEC. If it does that, Redbox will pay Paramount about $575 million over the five-year term, with a guaranteed market share of 18.5% for Paramount titles in Redbox kiosks.
Sony Pictures Home Entertainment and Lionsgate recently signed deals to distribute titles directly to Redbox. Walt Disney Studios Home Entertainment also provides its titles to the kiosk operator.
Warner Home Video, 20th Century Fox Home Entertainment and Universal Studios Home Entertainment all are trying to impose a delayed window on kiosk windows and are being sued by Redbox.
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