Redbox and Lionsgate have announced a multi-year agreement, according to a press release from Redbox. Redbox will now have greater access to more Lionsgate new release and catalog titles, including childrens titles.
There is a catch, though, as this is the second agreement in the past month that prevents Redbox from reselling previously viewed DVDs. As part of this agreement, Redbox will destroy Lionsgate titles after they are removed from the kiosk.
A quote from the release:
“We believe that the Redbox model will ultimately expand the business by increasing the number of impulse rentals and by putting packaged media rentals in places where none existed previously,” said Steve Beeks, Lionsgate President and Co-Chief Operating Officer. “This agreement gives us tremendous placement for all our films and lowers the impact of low-priced previously-viewed DVDs being sold into the market, which we saw as a growing issue. We believe that this arrangement is a smart opportunity for Lionsgate in the current environment and a win/win for both companies.” [emphasis added]
It looks like these deals are becoming increasingly common, which may indeed take Redbox completely out of the resale market, as I mentioned yesterday. But, as long as consumers still get $1 DVD rentals, I don’t think the complaints will get too loud.
Now, where is the announcement between Redbox and Disney? Perhaps next week…