Twentieth Century Fox, Universal Reach Distribution Deal with redbox

LOS ANGELES/OAKBROOK TERRACE: Ending a legal spat, DVD kiosk operator redbox has agreed to a 28-day window on titles from Twentieth Century Fox Home Entertainment and Universal Studios Home Entertainment.

The new deal will see redbox receive improved economic terms and the ability to offer product four weeks after street date. The agreement also extends redbox’s access to Blu-ray titles, which it is testing in select markets.

With Fox, the first release under the new windowing agreement will be Avatar, which Fox will supply directly to redbox. The kiosk operator has agreed to destroy all DVDs and Blu-ray disks after their run expires. The first release covered under the deal with Universal will be the hit comedy It’s Complicated.

"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, the 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," added Mike Dunn, the president of worldwide at 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."

"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," commented Craig Kornblau, the president of Universal Studios Home Entertainment. "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," concluded  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."