Redbox Permitted to Pursue Antitrust Claims Against Universal

OAKBROOK TERRACE: DVD kiosk operator Redbox’s antitrust lawsuit against Universal Studios Home Entertainment can proceed, according to a federal judge, who yesterday denied the studio’s motion to dismiss the case.

Universal is among the Hollywood studios placing limits on granting new-release titles to Redbox, which rents DVDs for $1 a night through kiosks in more than 15,000 locations across the U.S. Twentieth Century Fox is similar opting to hold titles from Redbox until 30 days after the retail launch, prompting Redbox to file suit last week. Two days later, Warner Bros. revealed that it would hold its new releases for 28 days before releasing them to DVD kiosk operators.

Reports indicate that the studios had expected the Delaware District Court to throw out Redbox’s claims against Universal. 

"The Federal Court’s decision marks an important step forward in our effort to protect consumers’ right to convenient, affordable access to new release DVDs at redbox locations nationwide," said Mitch Lowe, the president of Redbox. "We appreciate the Court’s thoughtful review of this issue and look forward to pursuing our claim and protecting our consumers’ rights."