HOLLYWOOD, CA (August 25, 2009) – Paramount Home Entertainment Inc. (PHE) and Redbox Automated Retail, LLC (Redbox), today announced that the companies have entered into a trial license program that will provide Redbox access to Paramount Pictures DVD releases through the end of 2009. As part of this program, PHE will receive access to detailed PHE rental data, which the studio will use to evaluate the impact and viability of the program.
PHE’s titles will be made available to Redbox when the title is initially released regardless of whether the title is part of PHE’s recently announced rental / Blu-ray sell-through strategy, or if it is to be released day and date for both sale and rental.
“This agreement is a positive step with Paramount. The agreement ensures
that our customers will have increased access to some of the biggest titles of
the year,” said Mitch Lowe, president, Redbox.
Following the four-month trial period, PHE has the option to extend the program to 2014, with an out clause after two years. In addition, as part of the program with PHE, Redbox has agreed to destroy the product once Redbox removes it from the kiosk.
Paramount Home Entertainment (PHE) is part of Paramount Pictures
Corporation (PPC), a global producer and distributor of filmed
entertainment. PPC is a unit of Viacom (NYSE: VIA, VIA.B),
a leading content company with prominent and respected film, television
and digital entertainment brands. PHE is responsible for
the sales, marketing and distribution of home entertainment products
on behalf of various parties including: Paramount Pictures, Paramount
Vantage, Paramount Classics, Paramount Famous Productions, Nickelodeon,
MTV, Comedy Central, CBS and PBS and for providing home entertainment
fulfillment services for DreamWorks Animation Home Entertainment.
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 500 million DVDs and is available at more than 15,000 locations nationwide, including select McDonald’s restaurants, leading grocery and convenience stores, and Wal-Mart and Walgreens locations in select markets. For more information, visit www.redbox.com.