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Redbox sued Fox for delaying new releases to kiosks

12 August 2009 20:29 by James "Dela" Delahunty | 6 comments

Redbox, a DVD rental Kiosk service that operates 17,900 kiosks in the U.S., has filed a lawsuit against 20th Century Fox for attempting to delay new releases from its machines. Fox, like Universal before it, believe that Redbox' $1 rental fee and $7 DVD sales seriously undervalue the product, and will do damage to DVD sales by diverting consumers away from stores like Blockbuster where they are surrounded by new DVDs to buy.

The lawsuit was filed on Tuesday in U.S. District Court in Wilmington, Delaware. Redbox had previously sued Universal for the same tactics and is awaiting a decision. The Fox lawsuit accuses the studio of violating antitrust laws by reducing consumer choice in the marketplace, as well as increasing prices that consumers must pay.

Not all studios feel the same way as Fox and Universal however. Sony Pictures reached a deal with Redbox to offer Sony titles for rental, as long as Redbox destroyed the rental DVDs instead of selling them when their rental life is over. Lions Gate Entertainment Group also agreed on Tuesday to make its films available to Redbox immediately.

Universal and Fox are attempting to delay new releases from reaching the kiosks, anticipating that DVD sales will be lost, by pressuring distributors to wait a number of weeks before selling to Redbox. However, Redbox customers won't have noticed a difference most likely, because the company paid a premium cost and bought new DVDs from retailers instead, hitting the company's profit margins but maintaining supply.

Permalink to this article

Blockbuster to close up to 1000 locations (16 September 2009)

Independent retailers start campaign against Redbox (5 September 2009)

Blockbuster movies headed to Motorola phones (18 August 2009)

Fox pulls new DVDs from Redbox kiosks (8 August 2009)

Sony, Redbox ink distribution deal (27 July 2009)

Redbox expands into video games (1 June 2009)

Redbox expands into Circle K stores (30 May 2009)

Redbox expansion continues in deal with Walgreens (28 February 2008)

Wal-Mart to add Redbox DVD rental kiosks to most US locations (8 February 2008)

Blockbuster to challenge Redbox in kiosk market (28 November 2007)

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varnull (Inactive) 12 August 2009 20:37
*Quote:* However, Redbox customers won't have noticed a difference most likely, because the company paid a premium cost and bought new DVDs from retailers instead, hitting the company's profit margins but maintaining supply. hahahahahaha.. they must have read what I posted in the topic about them being blocked from renting fox films.. classic. Free open source software = made by end users who want an application to work. I would rather you hate me for who I am than love me for what I am not. �It is poor civic hygiene to install technologies that could someday facilitate a police state.� - Bruce Schneier [ + quote] This message has been edited since posting. Last time this message was edited on 12 August 2009 20:37
DXR88 (Senior Member) 13 August 2009 0:10
*Quote:* Fox, like Universal before it, believe that Redbox' $1 rental fee and $7 DVD sales seriously undervalue the product, and will do damage to DVD sales by diverting consumers away from stores like Blockbuster where they are surrounded by new DVDs to buy. we used to go to blockbuster to rent movies: keywords rent and used too [ + quote]
plazma247 (Junior Member) 13 August 2009 6:54
http://www.metacafe.com/watch/790477/free_redbox_dvds/ Cough.. lol [ + quote]
LM2008 (Newbie) 13 August 2009 7:52
A deal to destroy old dvds?? WTF!! greedy bastards. Reminds me a few days back when i read a similar thing about WB suing a company the had to destroy old dvds and they was selling them instead. [ + quote]
SProdigy (Member) 13 August 2009 8:42
*Originally posted by LM2008:* A deal to destroy old dvds?? WTF!! greedy bastards. Reminds me a few days back when i read a similar thing about WB suing a company the had to destroy old dvds and they was selling them instead. More than likely, "destroy" means to send back to the distributor (also likely to be a Fox subsidiary) who will then resell it themselves instead of Redbox. Redbox probably receives a stipend to make up for the loss from these previously viewed sales, and Fox pays extra just to maintain their "integrity"? Here's an idea Fox, why not lower the cost of your overpriced DVD's at retail, then everyone wins? Paying Redbox to "destroy" the discs just so you can charge $15-20 for a new release DVD is NOT consumer friendly. [ + quote]
duke8888 (Junior Member) 13 August 2009 10:20
Screw Blockbuster they have the worst service around and they jerk customers off. If you join you will be lucky to get 3 dvd's a week! GO REDBOX [ + quote]