Warner Bros., Redbox Ink Deal

BURBANK/OAKBROOK TERRACE: Warner Bros. Home Entertainment Group has agreed to make its new-release and Blu-ray titles available to DVD kiosk operator Redbox after a 28-day window.

The agreement settles the lawsuit Redbox filed against Warner Home Video last August over the studio’s distribution terms. Redbox already has similar deals with a number of other studios. The 28-day window is intended to allow the studios to maximize the revenues from the sales of new-release DVDs as well as VOD revenues. “We are very pleased to have had the opportunity to sit down with redbox and negotiate an arrangement that benefits both parties and allows us to continue making our films available to redbox customers,” said Kevin Tsujihara, the president of Warner Bros. Home Entertainment Group. “The 28-day window enables us to get the most from the sales potential of our titles and maximize VOD usage.”

Redbox, meanwhile, will benefit from lower product costs, DVD quantities as well as broader access to Blu-ray titles, which the kiosk operator is currently testing in select markets. “This agreement enables redbox to fulfill our commitment to providing consumers affordable and convenient home entertainment,” said Mitch Lowe, the president ofredbox. “By agreeing to a delayed release date, redbox can now acquire Warner Home Video titles at a reduced product cost, preserving value for our consumers and increasing customer access to Warner titles at redbox locations nationwide.”

The new agreement will run through January 31, 2012. Redbox has also agreed to destroy Warner Home Video content following its lifespan in kiosks.