Andre Yoskowitz
27 Jul 2009 0:18
Sony Pictures Home Entertainment has announced they have signed a new deal with the DVD rental kiosk operator Redbox that will bring the Sony discs to the over 17,000 nationwide kiosks.
The distribution deal is for five years and $460 million USD, and is the first known agreement between the company and a major studio.
“The agreement supports two of our overall business objectives—increasing the availability of our titles and eliminating a key source of previously viewed product in the marketplace,” SPHE president David Bishop adds, via VB.
Notably, the deal does not include Blu-ray, and Sony has an "out clause" that can be used in 2011 if the deal is not working to their liking.
Adds the source, "the SEC filing says that Redbox will take agreed-to minimums of theatrical and direct-to-video DVDs and that Sony titles “are expected to represent approximately 19.9% percent of the total DVDs licensed and purchased by Redbox for 2009.” That will give Sony a significantly larger presence in Redbox kiosks than it commands in the broader rental channel. The studio’s overall rental market share was 13.9% in the first half of the year."
“Redbox is thrilled to build on our positive relationship with Sony Pictures Home Entertainment and to provide our consumers with increased access to their favorite titles,” notes Redbox president Mitch Lowe.