August 12, 2009

Redbox sues Fox over DVD restrictions

Kiosk operator Redbox sued 20th Century Fox, challenging the Century City, Calif., studio's new rule that Redbox wait 30 days after Fox DVDs are released.

The suit was filed Tuesday after Fox announced terms of its new distribution terms and directed wholesalers not to sell new release titles to vending operators until 30 days after street date, beginning with the fall release of its Ice Age: Dawn of the Dinosaurs, Variety reported Wednesday.

Redbox's cornerstone principles include providing customers with a convenient way to rent new-release DVDs at an affordable price, Redbox President Mitch Lowe said in a statement. At the expense of consumers, 20th Century Fox is attempting to prohibit timely consumer access to its new release DVDs at Redbox retail locations nationwide.

Despite Fox's directive, Redbox will continue to provide our consumers access to all major new releases including 20th Century Fox titles ..., Lowe said.

Redbox, based in Oakbrook Terrace, Ill., filed a similar lawsuit against Universal Studios Home Entertainment in October after the studio tried to create a vending rental window 45 days after a DVDs street date. A decision is pending.