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.