Paramount Home Entertainment (PHE) has decided to extend its revenue sharing license agreement with redbox, providing access to the studio's DVD and Blu-ray titles to rent at the approximately 22,000 redbox kiosk locations - on the same day they are released in the sell-through market. The deal is valid through 2011, and can be extended a further three years.
A trial license agreement had been signed between Paramount and redbox in August 2009, with redbox agreeing to provide PHE rental data to evaluate the potential benefits of a longer term contract. After a ten-month analysis of disc sell-through and rental performance, Paramount has exercised its option to extend the agreement.
"After analyzing the data from our test period we have concluded that redbox day-and-date rental activity has had minimal impact on our DVD sales," said Dennis Maguire, worldwide president of Paramount Home Entertainment. "By granting redbox day-and-date availability we are allowing the consumer a choice of how to consume our movies while maximizing the profitability of our releases in the home entertainment window. We are looking forward to continuing a productive and mutually beneficial relationship with redbox."
"We are delighted to continue our relationship with Paramount to provide consumers with convenient, timely and affordable access to their favorite movies," said Mitch Lowe, president, redbox. "We look forward to supporting Paramount movie releases through joint marketing programs. This arrangement is a win, win and win – for consumers, Paramount and redbox."
According to
Business Week, other studios that allow day-and-date rental at redbox kiosks include Anchor Bay, Disney, Lionsgate, Sony and Summit Entertainment. On the other hand, a 28-day window is applied to titles from Fox, Universal and Warner.