Redbox, Hollywood continue legal standoff

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Redbox has pending legal cases against 20th Century Fox Home Entertainment and Warner Home Video, with the rental kiosk operator accusing the Hollywood studios of antitrust behavior.

Filed on Oct. 1 in the U.S. District Court in Delaware, Warner said Redbox’s case is incorrect — and expects the lawsuit to be dropped.

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“Redbox’s claims are wholly based on speculative future events, because Warner’s [new] wholesale policy won’t take effect until Oct. 27 when “The Orphan” is released,” Warner lawyers said in a statement.  “This is precisely the type of routine business dispute, motivated solely by a merchant’s attempt to protect its profits rather than to protect competition, that the antitrust laws are not meant to address.”

redboxRedbox, owned and operated by Coinstar, has a firm stance that 20th Century Fox is being unfair regarding the pricing and distribution agreements as to when newly-released videos can be shared through Redbox.

Redbox has current legal cases against Fox, Universal Studios and Warner Home Video — Fox and Redbox have been unable to agree to a new pricing agreement, but will still offer its movies through the service 30 days after a DVD retails in stores.

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Movie studios have been unhappy with Redbox as the rental kiosk business reportedly receives most of the revenue.  Furthermore, it appears Redbox is less interested in agreeing to “a business deal on general terms similar to those paid by others in the industry,” according to a statement issued by Fox.

Redbox should still have access to the popular movies it wants, but may lose access to distribution channels it currently uses to keep rental costs at $1 per day.

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