Paramount, Redbox in Multi-Year Day-and-Date Deal

HOLLYWOOD/OAKBROOK TERRACE: Following a trial period, Paramount Home Entertainment has entered into a multi-year license agreement with DVD rental kiosk operator Redbox.

Redbox and PHE signed their initial trial license agreement in August 2009, and subsequently extended it until June 30. The trial agreement included an option for Paramount to extend the agreement with Redbox through December 2014. Paramount has exercised its option to extend its revenue-sharing license agreement, providing Redbox access to the studio’s DVD and Blu-ray titles at its approximately 22,000 kiosk locations on the same day they are released in the sell-through market.

"After analyzing the data from our test period we have concluded that Redbox day-and-date rental activity has had minimal impact on our DVD sales," said Dennis Maguire, worldwide president of Paramount Home Entertainment. "By granting Redbox day-and-date availability we are allowing the consumer a choice of how to consume our movies while maximizing the profitability of our releases in the home entertainment window. We are looking forward to continuing a productive and mutually beneficial relationship with Redbox."