Redbox Extends Sony Agreement To Keep Same Day ReleasesBy: Josh Wolford - August 6, 2012
You can expect to see Sony Pictures films continue to arrive at Redbox without delay, thanks to an extension of the companies’ licensing agreement that goes through September, 2014.
On the heels of their Q2 earnings release, Redbox parent company Coinstar has announced an amended agreement with Sony that extends it past the upcoming September 2012 termination deadline. At the end of September, 2014, Sony will retain the option for two one-year extensions.
The deal gives Redbox to continue to distribute Sony films on the very same day that Sony makes them available for purchase to the general public. It also gives Redbox the option to license Blu-Rays, among other things.
Translation: No delays on Sony films.
This news comes amidst licensing struggles with other companies like Disney and Warner Bros. Earlier this year, Warner Bros implemented a 56-day delay period for new releases, meaning that companies like Redbox and Netflix wouldn’t be able to distribute their films to customer for nearly two months after they’d been on sale. Redbox promptly fought back, electing to purchaser the films from retailers, at nearly double the cost.
Disney also recently imposed a 28-day delay on rentals to Netflix and Redbox. Redbox circumvented this in a similar fashion.
Well have to wait and see if and how any future deals with Warner and Disney allow Redbox to provide same-day release rentals to customers. Things could get a bit more interesting when Redbox’s new streaming service, Redbox Instant Streaming, debuts later this year.[Coinstar SEC Filing, via Engadget]