Redbox Company

The hottest thing in movie rentals is as old as the Coke machine -- and just as red. Redbox movie kiosks are popping up by the thousands in supermarkets, drugstores, restaurants and convenience stores around the country. The kiosks stock DVDs that rent for $1 a day, a remainder-bin price that is less than a cup of coffee at Starbucks.

Paramount Pictures has put off a decision on whether to enter into a five-year deal that has riled half the Hollywood studios. The Viacom Inc.-owned studio has extended through June its trial agreement with $1-a-night DVD kiosk company Redbox that was set to expire Dec. 31. Under the deal struck in August, Paramount committed to provide new movies to Redbox in exchange for data that would help it decide whether low-priced rentals were hurting sales....

The battle lines over Redbox continue to be drawn in Hollywood, as Lions Gate Entertainment on Wednesday came down in favor of the controversial $1-per-night DVD rental kiosk company. The independent studio, known for its low-budget Tyler Perry comedies and "Saw" horror pictures, has signed a five-year deal to provide movies to Redbox on the same day they go on sale. In a regulatory filing, Redbox's parent company, Coinstar Inc., estimated it will pay Lions Gate $158 million over the term of the deal.

As the major Hollywood studios line up for and against Redbox, Paramount Pictures is playing it down the middle. The studio, owned by Viacom Inc., has signed a first-of-its-kind trial deal guaranteeing that its titles will be available from the fast-growing $1-a-night DVD rental company through the end of the year. During that time, Paramount will study the effect of Redbox rentals on its total home-entertainment revenue, examining whether there is any decrease in the sales of its DVDs at Wal-Mart stores that house Redbox kiosks.

As the major Hollywood studios line up for and against Redbox, Paramount Pictures is playing it down the middle. The studio, owned by Viacom Inc., has signed a first-of-its-kind trial deal guaranteeing that its titles will be available from the fast-growing $1-a-night DVD rental company through the end of the year. During that time, Paramount will study the effect of Redbox rentals on its total home-entertainment revenue, examining whether there is any decrease in the sales of its DVDs at Wal-Mart stores that house Redbox kiosks.

Redbox continued its battle with Hollywood studios, suing 20th Century Fox over its attempts to keep the vending machine operator from offering newly released DVDs for $1 a night. The lawsuit, filed Tuesday in federal court in Delaware, accuses Fox of using its power to "unlawfully coerce" distributors of its DVDs to withhold the release of new titles for 30 days from the initial release date. The suit alleges that such actions constitute an abuse of Fox's copyright and "naked restraint of trade."

Paramount Pictures has put off a decision on whether to enter into a five-year deal that has riled half the Hollywood studios. The Viacom Inc.-owned studio has extended through June its trial agreement with $1-a-night DVD kiosk company Redbox that was set to expire Dec. 31. Under the deal struck in August, Paramount committed to provide new movies to Redbox in exchange for data that would help it decide whether low-priced rentals were hurting sales....

Movie studio executives don't hate Redbox -- they just think it's the equivalent of that dingy movie theater where you can catch 4-month-old movies for a buck. That's the widening consensus among executives in Hollywood as they search for a strategy to deal with the fast-growing DVD kiosk company that rents movies for $1 per night.

As Yogi Berra would say: Yikes, it's déjà vu all over again. In recent days, my newspaper has been chock-full of stories about the latest round of legal battles between the Hollywood studios and Redbox, the upstart $1-per-night DVD rental kiosk company. My colleague Ben Fritz has done a wonderful job of chronicling all the fussing and fighting, having reported on how three of Hollywood's biggest studios -- 20th Century Fox, Warner Bros. and Universal -- are refusing to provide DVDs to Redbox until at least 28 days after they go on sale.

Sony Pictures Home Entertainment's new licensing deal with Redbox Automated Retail -- operator of those bright-red $1 DVD rental kiosks in grocery and convenience stores -- adds up to some serious coin. Sony stands to collect about $460 million over the term of the five-year agreement, which extends through September 2014, according to regulatory filings.

Redbox has sued Warner Home Video, its third such lawsuit against a Hollywood studio for trying to delay distribution of newly released DVDs to the operator of $1 movie rental kiosks. The suit filed Tuesday takes issue with new distribution terms imposed by Warner Home Video that would prohibit kiosk operators like Redbox from obtaining new DVD releases for 28 days after they go on sale. Time Warner Inc.-owned Warner Bros. adopted a policy for its home video unit similar to that imposed by 20th Century Fox and Universal Pictures, which also prompted Redbox to bring civil suits.

As Yogi Berra would say: Yikes, it's déjà vu all over again. In recent days, my newspaper has been chock-full of stories about the latest round of legal battles between the Hollywood studios and Redbox, the upstart $1-per-night DVD rental kiosk company. My colleague Ben Fritz has done a wonderful job of chronicling all the fussing and fighting, having reported on how three of Hollywood's biggest studios -- 20th Century Fox, Warner Bros. and Universal -- are refusing to provide DVDs to Redbox until at least 28 days after they go on sale.

Redbox continued its battle with Hollywood studios, suing 20th Century Fox over its attempts to keep the vending machine operator from offering newly released DVDs for $1 a night. The lawsuit, filed Tuesday in federal court in Delaware, accuses Fox of using its power to "unlawfully coerce" distributors of its DVDs to withhold the release of new titles for 30 days from the initial release date. The suit alleges that such actions constitute an abuse of Fox's copyright and "naked restraint of trade."

The battle lines over Redbox continue to be drawn in Hollywood, as Lions Gate Entertainment on Wednesday came down in favor of the controversial $1-per-night DVD rental kiosk company. The independent studio, known for its low-budget Tyler Perry comedies and "Saw" horror pictures, has signed a five-year deal to provide movies to Redbox on the same day they go on sale. In a regulatory filing, Redbox's parent company, Coinstar Inc., estimated it will pay Lions Gate $158 million over the term of the deal.

Movie studio executives don't hate Redbox -- they just think it's the equivalent of that dingy movie theater where you can catch 4-month-old movies for a buck. That's the widening consensus among executives in Hollywood as they search for a strategy to deal with the fast-growing DVD kiosk company that rents movies for $1 per night.

Sony Pictures Home Entertainment's new licensing deal with Redbox Automated Retail -- operator of those bright-red $1 DVD rental kiosks in grocery and convenience stores -- adds up to some serious coin. Sony stands to collect about $460 million over the term of the five-year agreement, which extends through September 2014, according to regulatory filings.

Redbox has sued Warner Home Video, its third such lawsuit against a Hollywood studio for trying to delay distribution of newly released DVDs to the operator of $1 movie rental kiosks. The suit filed Tuesday takes issue with new distribution terms imposed by Warner Home Video that would prohibit kiosk operators like Redbox from obtaining new DVD releases for 28 days after they go on sale. Time Warner Inc.-owned Warner Bros. adopted a policy for its home video unit similar to that imposed by 20th Century Fox and Universal Pictures, which also prompted Redbox to bring civil suits.

Redbox is hooking up with Verizon Communications Inc. as part of a major step forward to compete with Netflix Inc. in both the digital and physical worlds. The company famous for its ubiquitous red DVD rentals kiosks announced Monday that it would form a joint venture with telecom giant Verizon to create an online movie subscription service. Redbox also agreed to spend up to $100 million to acquire the Blockbuster-branded DVD kiosks operated by NCR Corp., its largest competitor in that business, adding about 9,000 machines to its existing base of 35,400.

The hottest thing in movie rentals is as old as the Coke machine -- and just as red. Redbox movie kiosks are popping up by the thousands in supermarkets, drugstores, restaurants and convenience stores around the country. The kiosks stock DVDs that rent for $1 a day, a remainder-bin price that is less than a cup of coffee at Starbucks.