SEATTLE – DVD rental kiosk chain Redbox has agreed to wait 28 days after Warner Bros. releases new movies for sale before offering to rent them for $1 a night.
The agreement announced Tuesday ends a lawsuit that Redbox, a subsidiary of Coinstar Inc., filed against Warner Bros.' home video unit last August. That was its third such suit against a studio that wanted to delay cheap rentals to boost sales of DVDs, a significant moneymaker for movie studios.
Redbox said in the lawsuit that it was being unfairly prevented from buying discs from wholesalers. The company had resorted to buying new-release DVDs from retailers at higher prices to keep its kiosks stocked with new titles. AP
The agreement announced Tuesday ends a lawsuit that Redbox, a subsidiary of Coinstar Inc., filed against Warner Bros.' home video unit last August. That was its third such suit against a studio that wanted to delay cheap rentals to boost sales of DVDs, a significant moneymaker for movie studios.
Redbox said in the lawsuit that it was being unfairly prevented from buying discs from wholesalers. The company had resorted to buying new-release DVDs from retailers at higher prices to keep its kiosks stocked with new titles. AP
