Redbox, Redbox Instant by Verizon and Warner Bros. Home Entertainment
Announce Multi-Year Content-Licensing Agreements
OAKBROOK TERRACE, IL -- (Marketwire) -- 10/25/12 -- Redbox, a wholly
owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), and Warner Bros.
Home Entertainment have signed a multi-year agreement to bring Warner
Bros.' Blu-ray Disc(TM) and DVD titles to Redbox(R) kiosks 28 days
after their retail release dates.
In addition, Redbox announced plans to join the Digital Entertainment
Content Ecosystem (DECE) and has agreed to promote UltraViolet
through a program of mutually agreed-upon promotions and marketing
tactics designed to help retail customers discover UltraViolet.
"For the past 10 years, Redbox has been committed to giving consumers
affordable access to new-release entertainment," said Galen Smith,
senior vice president, Redbox. "This new agreement continues this
commitment and represents an exciting new chapter in our relationship
with Warner Bros., and an opportunity to explore our consumers'
interest in UltraViolet."
For titles with street dates between January 1, 2013 and December 31,
2014, the studio will grant Redbox the rights to offer Warner Bros.
theatrical titles on Blu-ray Disc and DVD 28 days after their retail
release dates. The arrangement will improve the economics for both
Warner Bros. and Redbox while ensuring consistent availability of
Warner Bros. titles for the consumer.
"We are pleased to once again have a direct relationship with Redbox,
providing their consumers access to our movies," said Ron Sanders,
president, Warner Home Video. "In addition, we look forward to
working together on other key initiatives such as UltraViolet and
creating promotional opportunities to offer consumers great content
when and where they want it."
Warner Bros. Extends Digital and UltraViolet Deal to Redbox
Instant(TM) by Verizon
Warner Bros. Home Entertainment has also
inked a separate deal with Redbox Instant by Verizon, the joint
venture of Redbox and Verizon set to launch later this year, which
plans to offer digital movies together with the convenience and value
of Redbox DVD and Blu-ray Disc rentals.
This agreement will make Warner Bros. titles available in VOD and EST
formats and allow Redbox Instant by Ver
izon to support and distribute
Warner Bros. UltraViolet-enabled movies. The deal also covers a
multi-year SVOD agreement supporting feature-length content.
"This agreement fits perfectly with Redbox Instant by Verizon's
vision for bringing people the movies that matter, wherever and
whenever they choose, using the devices and media they prefer, at
home or away," said Shawn Strickland, CEO, Redbox Instant by Verizon.
"We look forward to working with Verizon and Redbox to offer
consumers a wide selection of great content that can be enjoyed,
whether buying or renting, on a variety of devices, and in any format
that fits their individual preferences," said Thomas Gewecke,
president, Warner Bros. Digital Distribution. "We are also pleased to
have a new, direct relationship with the Verizon and Redbox joint
venture to ensure their customers have consistent access to our
About Warner Bros. Home Entertainment
Warner Bros. Home
Entertainment, Inc. (WBHE) brings together Warner Bros.
Entertainment's home video, digital distribution, interactive
entertainment, technical operations and anti-piracy businesses in
order to maximize current and next-generation distribution scenarios.
An industry leader since its inception, WBHE oversees the global
distribution of content through packaged goods (Blu-ray Disc and DVD)
and digital media in the form of electronic sell-through and
video-on-demand via cable, satellite, online and mobile channels, and
is a significant developer and publisher for console and online video
game titles worldwide. WBHE distributes its product through third
party retail partners and licensees, as well as directly to consumers
Redbox Automated Retail, LLC, a wholly-owned subsidiary
of Coinstar, Inc. (NASDAQ: CSTR), offers new-release DVD, Blu-ray
Disc(TM) and video-game rentals through its network of conveniently
located, self-service kiosks. Redbox has rented more than 2 billion
discs and is available at approximately 42,400 kiosks across 34,600
locations nationwide, including select Walgreens, Walmart and
McDonald's locations, and leading grocery, drug and convenience
stores. For more information, visit www.redbox.com.
About Redbox Instant by Verizon
Verizon and Redbox Digital
Entertainment Services, LLC, was formed in February 2012 as a result
of a joint venture between Verizon Communications Inc. and Redbox
Automated Retail, LLC. A new brand, Redbox Instant by Verizon was
created to offer U.S. consumers the best of both digital and physical
worlds. All consumers have immediate access to new-release DVD and
Blu-ray Disc(R) movie rentals through more than 42,400 Redbox kiosks
nationwide and can instantly view popular entertainment content
anywhere, anytime, using the devices they prefer with a Redbox
Instant by Verizon subscription and video on-demand streaming
service. The venture will be available to the public by end of 2012.
For more information, visit www.redboxinstant.com.
Safe Harbor for Forward-Looking Statements
Certain statements in
this press release are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including phrases conveying expectation or intent and other
expressions identifying future performance. Forward-looking
statements are not guarantees of future performance which may vary
materially from performance expressed or implied in the
forward-looking statements. Differences may result from actions taken
by Coinstar, Inc. or Redbox as well as those of third parties and
from risks and uncertainties beyond our control. Such risks and
uncertainties include, but are not limited to, the effect of a 28-day
rental window, the termination, non-renewal or renegotiation on
materially adverse terms of the agreements, the failure to abide by
the terms and requirements of the agreements, the timing and
availability of Redbox Instant by Verizon, and our role in the
UltraViolet initiative. The foregoing risks and uncertainties are
illustrative, but by no means exhaustive. For more information on
factors that may affect future performance, please review "Risk
Factors" described in our most recent Form 10-K and Form 10-Q filed
with the Securities and Exchange Commission. These forward-looking
statements reflect Coinstar, Inc.'s expectations as of the date of
this release. Coinstar, Inc. undertakes no obligation to update the
information provided herein.
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