As expected, Redbox is suing Warner Home Video over its demand for a 28-day window before it makes available low-cost DVDs to the kiosks. But what really warms my heart is the way Redbox President Mitch Lowe is using not just anti-trust law but also a PR offensive to fight back against the power, influence, and unlimited resources of the Hollywood studios and the cartel they’ve formed. (Hey, Hollywood guilds, you could learn a thing or two from these Redbox guys…) Redbox has now set up savelowcostdvds.com to explain its populist message aimed at the 150 million consumers who shop where the Redbox kiosks are located, “Don’t Let a few movie studios prevent you from seeing the latest DVDs at an affordable price”.
Here’s the latest Redbox lawsuit:
Oakbrook Terrace, Ill. – Redbox Automated Retail, LLC, filed suit in Delaware Federal Court against Warner Home Video on Tuesday, August 18, 2009, to protect consumers’ rights to access new release DVDs. Redbox filed the action in response to new distribution terms imposed by Warner Home Video that would prohibit redbox from providing consumers access to Warner Home Video titles until at least 28 days after public release.
“Warner Home Video’s actions come at the expense of consumers,” said Mitch Lowe, president, redbox. “Redbox remains committed to providing our customers the new release DVDs they want, where they want and at the low price they want. Standing behind our commitment, redbox will continue to offer our consumers access to all major new releases including Warner Home Video at our more than 15,000 locations nationwide.”
A number of studios also have shown support for redbox. Last week, redbox signed a multi-year distribution agreement with Lionsgate. A similar distribution agreement with Sony Pictures Home Entertainment (SPHE) was reached in July. “Redbox continues to forge winning relationships with a number of studios that increase studio exposure, ensure redbox customers receive access to more titles and support redbox’s commitment to providing consumers timely, convenient and affordable access to new release DVDs,” said Lowe.