More Legal Action from Redbox

OAKBROOK TERRACE: Redbox this morning announced that it has filed suit against Warner Home Video, taking issue with the studio’s new distribution terms.

It has been a busy few weeks for the DVD kiosk operator as it takes on the Hollywood studios, many of which are placing 28 to 30-day holds on releasing new titles to the company. With its $1 a night rentals at kiosks across the country, Redbox, some studios allege, is putting a further squeeze on home-entertainment revenues, which are already being hit by the increase in VOD and online download transactions, as well as by piracy. Redbox learned this week that it can proceed with its anti-trust lawsuit against Universal, and announced last week that it was filing suit against Twentieth Century Fox. All stem from Redbox taking issue with the studios’ release windows.

"Warner Home Video’s actions come at the expense of consumers," said Mitch Lowe, the president of Redbox. "Redbox remains committed to providing our customers the new release DVDs they want, where they want and at the low price they want. Standing behind our commitment, Redbox will continue to offer our consumers access to all major new releases including Warner Home Video at our more than 15,000 locations nationwide."

Redbox recently inked deals with both Lionsgate and Sony Pictures Home Entertainment. "Redbox continues to forge winning relationships with a number of studios that increase studio exposure, ensure Redbox customers receive access to more titles and support Redbox’s commitment to providing consumers timely, convenient and affordable access to new release DVDs," said Lowe.

Redbox has set up a dedicated website as it battles the studios—www.savelowcostdvds.com. The site, the company says, aims to educate "the public on Redbox’s effort to protect consumers’ rights against studio action."