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Redbox has issued a press release that they have filed suit against Universal Studios Home Entertainment.

Redbox believes that some new terms that Universal has proposed would prevent them from carrying new movies from them for 45 days after their initial release.

From the release:

Redbox filed the action because redbox believes that new distribution terms proposed by USHE would prohibit redbox from renting Universal Studios DVDs for 45 days after their public release, would limit how many Universal Studios DVDs each redbox kiosk could carry, and would require redbox to destroy, rather than sell at a discount, previously-viewed DVDs from its kiosks.

At this time Redbox still plans to carry all major new releases on their release date, including those of Universal.

I am sure this is complicated, but I am glad to see Redbox is going to bat on this, and not letting the studios dictate how they can run their business.

What do you think? Should a movie studio be allowed to do this?

An electronic version of the complaint is available on the Public Access to Court Electronic Records (PACER) website, which can be accessed by clicking on the following link: https://pacer.login.uscourts.gov/cgi-bin/login.pl?court_id=00idx. A copy of the complaint is also available upon request by emailing Kristin@jsha.com.

34 Responses to “Redbox sues Universal, Takes on the Big Boys”

  1. Visitor [Join Now]
    Peter [visitor]

    Mixed feelings on this one. On one side, Universal makes the movies. On the other, they don’t seem to have this restriction in place with other businesses that I know of. If it’s applied equally to all businesses, I think they’re actually within their rights (but foolish). If it’s aimed solely at Redbox, then they are probably going to lose.

    • Visitor [Join Now]
      fiser [visitor]

      well then blockbuster is going to get a good look at this case because they pay for exclusive dvd releases don’t they

    • Visitor [Join Now]
      D'oooh [visitor]

      Well d’uh this lawsuit will be specifically in regard to the monopoly that C@#kS%$#k3er video has with the major distributors. Blokheads have had it their way for too long, and it’s obviously a deal the the big boys at the studios like as well, but this is indeed why we have anti-trust laws in this country. Now, I will grant the point the BB has a monopoly created the oldfashioned way, by running everyone else out of business, but when a legitmate business like redbox is being denied even entry into the game, well we’ll all just have to get the lawyers involved, now wont we.

      • Visitor [Join Now]
        fiser [visitor]

        how does blockbuster have a monopoly you can go to Walmart or Target stores and buy your new release dvd and if you wait long enough you can get in the $5 bin brand new. now i see here that some people will not pay dollar for a rental but scream for a free code for their 3, 4 or 5 credit cards

  2. Visitor [Join Now]
    California Red [visitor]

    They are trying to create a 45 day window for Blockbuster Hollywood and Video On Demand.

    Redbox should be held to the same terms and conditions as traditional video rental stores. Redbox deserves day and date release as all other disc based channels.

  3. Visitor [Join Now]
    tuna [visitor]

    redbox is no diffrent than universal if you think about it , redbox limits who can rent their DVDs so you must use a credit card , sure there are 100,000 or maybe a million or more Americans who would like to rent from redbox but cant get a credit card because low income , ssi, or get disability payments so in a way redbox just as bad as universal so if redbox came out with their own gift debit cards that should cover it .

    • Visitor [Join Now]
      Rock [visitor]

      Redbox uses credit cards- so you dont walk off with free DVDs. What other methods could they use? Anyone can get a credit card these days, no matter your income level. Credit card companies feed off people who cant pay by implementing high intrest. You can actually use your ATM card if it has Visa on it- which most do. The purpose of using a credit card, is for billing.

      • Visitor [Join Now]
        fiser [visitor]

        Damm was i dumb i found a credit card at wal-mart man i could have gone to every redbox in my town and get free dvds good thing for redbox i was honest and turn in the credit card right away!

        • Visitor [Join Now]
          Chip [visitor]

          You’re not dumb at all, fiser. Wouldn’t you want for someone to turn in your lost credit card? Just like when you were a kid; “Honesty is the best policy.” Still seems like the right thing to do, huh?

        • Visitor [Join Now]
          Steve [visitor]

          That wasn,t dumb, it was the right thing to do Its time to go back to the way we were.Time for a change and you proved it we are changing.

        • Member [Join Now]
          caseybear

          I love your tongue and cheek sarcasm…get it people??!….

        • Visitor [Join Now]
          fiser [visitor]

          i can just see all these boy scouts and girl scouts waiting for midnight with their Monday code to ripe off Redbox on Tuesday new release with 3, 4 or 5 credit cards

      • Visitor [Join Now]
        Michele [visitor]

        If you’ve checked recently BB and the others have been requiring credit cards for over a year at least,so there really no difference there. Anyone can get a credit card to use for redboxas it takes the prepaid cards.

        • Visitor [Join Now]
          fisher [visitor]

          the redboxs here in Central Valley Calif., do not take gift cards anymore i did use a gift2go card, as the rental stores like Hollywood and Blockbuster require a credit card, or a telephone bill or pge bill with your name on it to rent from them

  4. Visitor [Join Now]
    Rebecca [visitor]

    Patience is a virtue.

  5. Visitor [Join Now]
    Tristan [visitor]

    Redbox does offer a great service. And for those who cannot obtain a credit card, you can also use your debit card. Where the charge is deducted from your bank account. But if a person is on assistance or low income, maybe renting movies is the last thing that should be on their mind. You feel me!!

    • Visitor [Join Now]
      fiser [visitor]

      What’s this got to do with Redbox vs. Universal? Blockbuster and Hollywood Video sell new dvds besides rentals, video on demand is data not hard copy !

      • Visitor [Join Now]
        Chip [visitor]

        I’m like, confused here…

        • Visitor [Join Now]
          fiser [visitor]

          Universal makes more money selling to Blockbuster, Hollywood Video and video on demand, redbox is a pirates treasure box

        • Visitor [Join Now]
          Brian [visitor]

          Universal is losing DVD sales due to the cutthroat rental rates that Redbox, BB and Netflix offer.

          Universal is simply trying to get more sales.

          Redbox could simply go to Walmart and pick up the movies, however, there $1 rental will be history with the added expense of hiring someone to pick up the movies every Tuesday.

  6. Visitor [Join Now]
    Tristan [visitor]

    Ya! Like Redbox rocks!!

  7. Visitor [Join Now]
    Brian [visitor]

    You have to ask why does Universal want to put a window on it’s movies.

    It’s painfully obvious that they are losing sales to $1 rentals. Redbox has lowered the perceived value of it’s movies.

    Universal has seen it’s sales plummet with all of these give away rental programs that BB, Netflix and Redbox are promoting.

  8. Visitor [Join Now]
    Steve [visitor]

    On this lawsuit being a layperson on buisness law do all the major buyers of video purchases from distributors pay approx the same amount per dvd. The operative question is how much profit does the buyers(block&^%%@@)want!!!!!!I dont know about you all but do the math $4.84 or $1.00. I with you Redbox till the wheels fall off…

    • Visitor [Join Now]
      BIG d [visitor]

      exactly the whole reson block buster or anyother big time rental place is charging more and more just to rent a movie some places a movie is more than a gallon of gas aint that just plain stupid then here rolls a new business in only charging one $ for a movie their loosin business unversal block buster know it there just coverin their lost

  9. Visitor [Join Now]
    George [visitor]

    I really hope that Redbox sets the standard for the other kiosk operators in this fight against Universal. I think it would be nice if they’d partner up with DVDPlay in this battle since they should band together to save their industry! Seriously though, it’s the least they could do for the little guys.

  10. Visitor [Join Now]
    Rod bennett. [visitor]

    I have a hunch that other rental companies have threaten to cut universal studios. i think blockbusters netflix and the other rental companies are behind this. They are being hurt.

  11. Member [Join Now]
    cfishguy

    once Redbox stops growing it will raise their price after all the name of the game is profits and you will see less free codes for now most of these stores they are in maybe don’t charge rent for its space

  12. Member [Join Now]
    caseybear

    Pretty soon, I predict, this will all be moot as there will be some new technology where we merely whisper the name of the movie we wish to see and the TV will instantly play it… As it is you can get a lot of “free” instant stuff from Netflix…you can get a cable to hook your TV to your laptop and watch whatever you can get on your computer. That includes all the networks that offer their series.

  13. Visitor [Join Now]
    Amy [visitor]

    I feel Universal has that right. I mean Red Box is only giving the consumer a burnt copy. If Red Box changes the way they rent thru and offers an original copy in original packaging to rent then they shouldn’t have to wait 45+days . But Red Box can’t with their “yesterdays technology” Universal still needs to pay Brad Pitt 6 million a year some how. I wish someone would have a rental machine that gives the original movie in the original packaging. Then we would probably see new releases faster on the streets.

    • Visitor [Join Now]
      fisher [visitor]

      if Redbox lets Universal get away with this then maybe Sony and Warner Brothers other studios will do the same thing making redbox useless except for renting cartoons and third rate movies

    • Visitor [Join Now]
      Trevor [visitor]

      What makes you think the Redbox DVDs aren’t originals? I’ve never gotten anything but an original DVD out of a Redbox machine – it would be illegal for Redbox to do otherwise. The only way you could have gotten a burned copy of a DVD is if someone managed to replace a real one with a copy and got the machine to accept it.