July 22, 2009 / 8:04 AM / 10 years ago

Sony-Redbox deal worth $460 million says filing

LOS ANGELES (Hollywood Reporter) - In a regulatory filing following Sony Pictures’ recently struck deal with Redbox, the DVD kiosk company’s owner, Coinstar, said Tuesday that the studio will reap $460 million under terms of its multiyear pact.

Sony on Monday announced a deal to provide new releases directly to Redbox through September 2014. It’s the first such agreement for the rental giant, which charges $1 per film and has had to secure studio titles through wholesalers. In exchange, Redbox agreed not to resell Sony discs, a practice that’s part of its arrangement with wholesalers Ingram and VPD and effectively dumps recent releases into discount bins more quickly than might otherwise be true — much to the annoyance of studio executives.

Meanwhile, if Universal prevails in its current court battle with Redbox — the studio has banned wholesalers of its titles from dealing with the discount rental company during the first 45 days of a title’s release — it appears that Sony would be able to impose such a ban as well, despite its agreement with the kiosk company.

Coinstar’s 8-K filing notes that “at Sony’s discretion, the agreement may expire earlier” than its defined term.

Editing by Sheri Linden at Reuters

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below