UNIVERSAL CITY, Calif. and OAKBROOK TERRACE, Ill., APRIL 22, 2010 – Universal Studios Home Entertainment and redbox have reached a long-term distribution agreement that will make Universal DVD and Blu-ray titles available for rental at redbox locations 28 days after release. The agreement ends the legal dispute between redbox and Universal. The announcement was made today by Craig Kornblau, President of Universal Studios Home Entertainment, and Mitch Lowe, President of redbox.
The deal provides redbox with reduced product costs and sufficient quantities of product four weeks after street date and extends redbox’s access to Blu-ray titles, which redbox is testing in select markets.
The first release covered under the new agreement is the hit comedy “It’s Complicated,” which Universal will directly supply to redbox 28 days after the film’s April 27 street date.
“While this arrangement mutually benefits our two companies, it’s more importantly a win for consumers who will now have increased access to Universal films at more than 20,000 redbox locations nationwide,” said Mr. Kornblau. “In forging this pact, we have successfully established balanced terms for our rental products in redbox® kiosks that provide consumers value and convenience in movie rentals.”
“This agreement enables redbox to fulfill our commitment to providing consumers affordable and convenient home entertainment,” said Mitch Lowe. “This arrangement allows redbox to acquire Universal titles at reduced product costs, preserving value for our consumers and increasing availability of Universal titles at redbox locations nationwide.”
Redbox has agreed to remove Universal content from kiosks after their useful rental life and discontinue access via rental or sale.
Universal Studios Home Entertainment is a unit of Universal Pictures, a division of Universal Studios (www.universalstudios.com). Universal Studios is a part of NBC Universal, one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80%-owned by General Electric, with 20% owned by Vivendi.
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 20,000 locations nationwide, including select McDonald’s restaurants, leading grocery and convenience stores, and Walmart and Walgreens locations in select markets. For more information, visit www.redbox.com.
Universal Studios Home Entertainment
Senior Public Relations Manager