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Expires tonight (Mon, Nov 3) at midnight.

Even more interesting news today on the pending litigation between Redbox and Universal.

It seems that Universal has launched their own entertainment kiosks over in the UK recently, and may be considering bringing them to the US.

These “POP” kiosks are a joint venture with Sony, and will allow consumers to download media direct to their devices as well as purchase DVDs, Bluray discs, and even video games.
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While normally I am all for innovation and new technology, I don’t like how they are going about it. This may shed a bit more light on what Universal is trying to do to kiosk operators here in the states: they simply don’t want competition for their new business.
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I am glad to hear that Redbox won’t be caving to their new “rules”.

I am very curious to see how this plays out for Universal. I am thinking it probably won’t go in their favor.

Some more information from the Coinstar earnings call that is of interest.

Redbox has plans already in place to ensure that they will continue to stock Universal DVD releases on day 1 of their release, ensuring this legal situation will not affect their customers.

Direct from the call transcript:

Pat Schaefer- Chartwell Capital Investors

Then one more issue, you stated that you can’t comment on universal’s proposed change in their distribution policy because of the pending litigation and I totally understand that, but perhaps you can comment on that development a little bit more broadly. Have other studios indicated similar intentions or is this strictly a universal policy change at this point?
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Dave W. Cole

Thus far we haven’t heard from any other studio so at this point in time that action is just restricted to Universal.

Pat Schaefer- Chartwell Capital Investors

Okay, and do you have a sense of when that distribution policy would take effect if they were successful in implementing it?

Brian Turner

As the lawsuit indicates, it’s December 1, and we already have figured out how to work with that and still have movies in the kiosks on the day of release, Universal movies, so we do not intend to let this slow us down.

This is great news for all of us. Also, they mention that no other studio has approached them with anything like this.
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And, hopefully after Universal fails at their attempt, that will be the end of this kind of thing.

Why is it that they media companies just can’t give consumers what they want and stop being so greedy. I understand the need for profits, but times are changing and they need to change with them.

There are a few news items today coming out of Coinstar’s Q3 2008 earnings call from Thursday. Read the full transcript of the call on Seeking Alpha.

First off, Coinstar has confirmed that the Redbox IPO has been on hold indefinitely due to current conditions in the market. While this really isn’t anything we didn’t already know, this was the first official word we have received about it.
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Of course, an IPO is still the plan and they will continue to evaluate the market and look for the right time to have another go at it.

It has been about 6 months since they originally announced their intentions to do this. What do you think now? Are you more or less likely to buy stock in a Redbox IPO now? Why?

Competition is heating up a bit and lawsuits are being filed, but Redbox is still growing nicely.
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I think they will make it through all of this, but only time will tell.

Please share your thoughts…