Redbox Automated Retail allows users to rent DVDs for mere $1 per night at more than 17,000 automated kiosks around the United States. But, 20th Century Fox has been trying to prevent the DVD kiosk company from renting its films to customers on the same day they are released.
20th Century’s proposal unacceptable
The studio has said that as of the end of October, it will keep its DVDs out of Redbox kiosks for at least 30 days after a DVD’s public release. But, Redbox has refused to honor a 30-day blackout period before renting them at its kiosks.
Redbox, a subsidiary of Bellevue-based Coinstar Inc., has now filed a lawsuit against 20th Century Fox in Delaware Federal Court.
In its complaint, filed Tuesday in U.S. District Court in Wilmington, Delaware, Redbox asked the judge to find Fox's copyrights unenforceable. "Fox's actions constitute copyright misuse, violate the antitrust laws and tortiously interfere with Redbox's existing supply contracts with its distributors," the company said.
Mitch Lowe, the president of Redbox, said in a statement: "Redbox's cornerstone principles include providing customers with a convenient way to rent new release DVDs at an affordable price. At the expense of consumers, 20th Century Fox is attempting to prohibit timely consumer access to its new release DVDs at redbox retail locations nationwide.”
“Despite this attempt, redbox will continue to provide our consumers access to all major new releases including 20th Century Fox titles at our more than 15,000 redbox DVD rental locations," Lowe continued.
Redbox’s deals with movie studios
Redbox’s lawsuit comes on the heels of its multi-year distribution agreement with Lions Gate Entertainment Corp. to distribute its films. Redbox agreed on Tuesday to pay entertainment company $158 million to distribute its DVDs in company’s movie rental kiosks for next five years.
Redbox signed a similar distribution deal with Sony Pictures Home Entertainment in July, under which the latter company will provide its movies for kiosks, as long as Redbox destroyed copies after their rental lives ended rather than sell them as "previously viewed."
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