Warner Bros. Press Release - REDBOX, REDBOX INSTANT BY VERIZON AND WARNER BROS. HOME ENTERTAINMENT ANNOUNCE MULTI-YEAR CONTENT-LICENSING AGREEMENTS
REDBOX, REDBOX INSTANT BY VERIZON AND WARNER BROS. HOME ENTERTAINMENT ANNOUNCE MULTI-YEAR CONTENT-LICENSING AGREEMENTS
OAKBROOK TERRACE, Ill. (October 25, 2012) – 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™ and DVD titles to Redbox® 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 InstantTM 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 Verizon 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 movies.”
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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 through www.WBShop.com.
About Redbox
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), offers new-release DVD, Blu-ray Disc™ 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®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.
Media Contacts:
Redbox
Kate Brennan
kbrennan@redbox.com
630-756-8781
Warner Bros.
Peter Binazeski
peter.binazeski@warnerbros.com
818-977-5701
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