Thaindian News

Aug 13 (IBNS) Redbox, DVD rental kiosk Company, announced Wednesday that it has sued 20th Century Fox over the studio’s attempts in delaying its titles from appearing in Redbox vending machines.

Redbox filed the lawsuit in US District Court in Wilmington and their move is the latest fight over Redbox’s service, which has divided Hollywood studios, The Sun News reported.

Fox and Universal Pictures are trying to preserve more lucrative DVD retail sales by keeping movies out of Redbox’s $1-per-night rental kiosks for some period after they go on sale.

But Lions Gate have agreed to Redbox to supply $1-per-night DVDs, but the move still leaves Hollywood divided over the cheap rental service.

Lions Gate has agreed to supply Redbox, a subsidiary of Bellevue, Wash.-based Coinstar Inc., with movie discs on the same day they are offered for retail sale, from Sept 1 through Aug 31, 2014, according to a regulatory filing Tuesday.

But Coinstar estimated that Redbox will pay Lions Gate $158 million over the life of the deal, although Lions Gate may withdraw after two years.

Redbox has split the Hollywood in two parts with its $1-per-night DVD rental kiosk service. Redbox could supply it with cheap wholesale discs and ride its massive growth, or starve it in the hopes of preserving higher-priced purchases. 20th Century Fox fell on the side of starvation this week, joining General Electric Co.’s Universal Pictures, whose withholding of discs prompted a lawsuit.