HOLLYWOOD, Calif. and OAKBROOK TERRACE, Ill., June 15 /PRNewswire-FirstCall/ -- Paramount Home Entertainment Inc. (PHE) and Redbox Automated Retail, LLC (redbox), today announced that Paramount exercised its option to extend its revenue sharing license agreement, providing redbox access to PHE DVD and Blu-ray titles to rent at its approximately 22,000 kiosk locations on the same day they are released in the sell-through market. PHE exercised its option following results from a 10-month analysis of DVD sell-through and rental performance.
"After analyzing the data from our test period we have concluded that redbox day-and-date rental activity has had minimal impact on our DVD sales," said Dennis Maguire, Worldwide President of Paramount Home Entertainment. "By granting redbox day-and-date availability we are allowing the consumer a choice of how to consume our movies while maximizing the profitability of our releases in the home entertainment window. We are looking forward to continuing a productive and mutually beneficial relationship with redbox."
"We are delighted to continue our relationship with Paramount to provide consumers with convenient, timely and affordable access to their favorite movies," said Mitch Lowe, president, redbox. "We look forward to supporting Paramount movie releases through joint marketing programs. This arrangement is a win, win and win – for consumers, Paramount and redbox. "
Redbox and PHE first signed a trial license agreement in August 2009, with redbox agreeing to provide PHE rental data to evaluate the potential benefits of a longer term contract.
About Paramount Home Entertainment
Paramount Home Entertainment (PHE) is part of Paramount Pictures Corporation (PPC), a global producer and distributor of filmed entertainment. PPC is a unit of Viacom (NYSE: VIA, VIA.B), a leading content company with prominent and respected film, television and digital entertainment brands. PHE is responsible for the sales, marketing and distribution of home entertainment products on behalf of various parties including: Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Famous Productions, Nickelodeon, MTV, Comedy Central, CBS and PBS and for providing home entertainment fulfillment services for DreamWorks Animation Home Entertainment.
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 750 million DVDs and is available at approximately 22,000 locations nationwide, including select McDonald's restaurants, leading grocery and convenience stores, and Walmart and Walgreens locations in select markets. For more information, visit www.redbox.com.
Certain statements in the foregoing 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. Certain words and expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. The forward-looking statements in this release include statements regarding redbox's relationship with Paramount relating to, among other things, a DVD revenue sharing licensing arrangement. Forward-looking statements are not guarantees of future performance and actual results may vary materially from the results expressed or implied in such statements. Differences may result from actions taken by Redbox, Coinstar, Inc., or Paramount, including those beyond Coinstar or redbox's control. Such risks and uncertainties include, but are not limited to, the early termination or the renegotiation on materially adverse terms, of the licensing arrangement, and failure to abide by the terms and requirements of the arrangement. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance of Coinstar or redbox, including the relationship with Paramount, please review "Risk Factors" described in Coinstar, Inc.'s most recent Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, as well as other filings. These forward-looking statements reflect Coinstar, Inc. and redbox's expectations as of the date hereof. No obligation is undertaken to update the information provided herein.
SOURCE Coinstar, Inc.