Warner Bros. Home Entertainment Group and redbox today announced a new multi-year distribution agreement that will make Warner Bros. new release DVD and Blu-ray titles available to redbox customers after a 28-day window.
The agreement marks the end of the lawsuit that redbox filed against Warner Home Video in August 2009.
"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, president, 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."
The new arrangement provides DVD rental kiosk chain Redbox with reduced product costs, sufficient quantities of product and optimal stock levels four weeks after street date as well as extends redbox's access to Blu-ray titles, which redbox is currently testing in select markets. The agreement also provides Warner Bros. the opportunity to maximize the sales of new release titles as well as video on demand and other forms of digital distribution.
Redbox agreed to destroy used DVDs after their popularity in the kiosks wanes instead of selling them for $7. The deal will also give Redbox the right to rent Blu-Ray discs from its kiosks. The company said it expects to start renting the high-definition versions for more than $1 a night starting in the middle of the year.
"This agreement enables redbox to fulfill our commitment to providing consumers affordable and convenient home entertainment," said Mitch Lowe, president, redbox. "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."
Warner Home Video and redbox will be implementing delayed availability during the month of March and will reach a four-week window by March 23 with the release of The Blind Side. The new agreement will run through January 31, 2012. Redbox has also agreed to destroy Warner Home Video content following its lifespan in kiosks.
"The 28-day window for redbox balances the economics of our relationship while continuing to offer great value to their customers," said Ron Sanders, president, Warner Home Video. "This accord establishes a mutually beneficial relationship that will foster an ongoing and productive partnership."