More details are coming out today about the deal Redbox has made with Sony.
According to Sony, the deal is worth $460 million over 5 years, but can be ended early at Sony’s discretion. Also, as part of the agreement, Redbox can no longer sell Sony’s movies in their kiosks. Redbox often sells their used DVDs for just $7 in many of their kiosks, giving Redbox users a great bargain on movies they want to buy as early as 2 weeks after their release.
This destruction of movies was one of the things Universal asked for in its proposed agreement to Redbox last year. This is a slap in the face of the First Sale Doctrine, and with Redbox now agreeing to it with Sony, they likely will be forced into the same deal with other studios. Is this the beginning of Redbox selling out to the studios? If so, consumers are the one that are going to lose in the long run.
What do you think? Should Redbox have made this deal with Sony (and possibly Disney and Lionsgate)? Do you ever buy the “$7 Keepers”? Let us know your thoughts in the comments.