Redbox & Paramount Renew DVD Deal
Dollar rental giant Redbox has secured an extended deal with Paramount Home Entertainment in a revenue sharing plan. The extended deal will run until 2011 at the least with the possibility of the deal running through 2013.
Under the terms of the deal Paramount will continue to provide Redbox rental kiosks with DVD and BluRay releases at the same time as other retail chains. Along with Paramount, Sony and Disney allow Redbox access to their new releases immediately while Warner Bros., Fox, and Universal withhold their new releases for the first four weeks. Those companies believe Redbox’s dollar rentals undermine new disc sales. The deal with Paramount expires on December 31, 2011 and the studio holds an option of extending the date until 2013.
Redbox has nearly 22,000 of their dollar-rental kiosks across the United States. Redbox renters can rent a movie from any location across the nation for $1 and keep them for just $1 a day and then return them to any location.