The multiyear agreement goes into effect during the month of March, with Oscar-nominated football tale The Blind Side becoming the first major title to see a delayed release in Redbox kiosks. As part of the deal, Redbox has also agreed to destroy all Warner DVDs after they have gone through their lifecycle in the kiosks, rather than reselling them and further undercutting Warner’s DVD sales. The agreement runs through January 2012.

The agreement follows similar deals that Redbox has struck with Hollywood movie studios over the past year or so. Warner Bros. joins Sony, Disney, Lionsgate and Paramount in agreeing to new release windows with the DVD rental kiosk company. Meanwhile, Universal Studios and 20th Century Fox are still embroiled in legal battles with Redbox.

Even as Hollywood studios strike deals to keep new releases out of Redbox kiosks, some still believe that the kiosk business will undercut overall DVD sales and could potentially destroy the film industry. In one particularly spectacular report late last year, the Los Angeles Economic Development Corp. claimed that Redbox’s low-cost movie rental will cost the entertainment industry $1 billion in revenue.

Warner Bros. has shown an interest in making nice with DVD rental services in order to protect sales of its new releases. Earlier this year, the studio struck a similar windowing deal with Netflix that will lengthen the wait for Netflix subscribers to get new DVD releases by 28 days, but would add more streaming titles from the studio’s film catalog to Netflix’s “Watch Instantly” streaming service.

Related GigaOM Pro content (subscription required): Redbox Success Means Netflix Should Consider Kiosks

Video Business reports that Redbox, which is embroiled in lawsuits with both studios over access to new release titles, has amended those suits to claim that retailers are limiting the number of DVDs Redbox can purchase. According to Redbox, various different retail chains have told the company that it cannot purchase more than three copies of a new release title from Fox or Warner.

From Redbox’s amended complaint:

“…Redbox representatives have attempted to purchase new release DVDs from Walmart, Best Buy and Target and have been informed by Walmart, Target and Best Buy that Redbox may not purchase more than three copies of any new release DVD…”

Redbox filed a similar amendment in its suit against Universal earlier this year. Universal denied the allegations.

As we learned at the recent NewTeeVee Live, Redbox is growing like a weed and now has more than 20,600 kiosks installed around the country. Its basic dollar-a-night movie rentals have been a hit with consumers, but a source of frustration for Hollywood, which feels that the low price devalues their content.

Check out my talk with Gary Cohen, the SVP of Marketing and Customer Experience at Redbox, from NewTeeVee Live (embedded above) where he touches on the legal battles his company is in.

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The deal will give Redbox access to new release Paramount movies as soon as they are released — a sticking point for those opposed to Redbox’s model. The LA Times reports that Paramount’s deal is a rev-share one, rather than an outright wholesale of discs to Redbox like Sony and Lionsgate do. Additionally, Paramount will get access to Redbox rental data of its movies, which the studio will use to determine the impact the $1 a night rental service has on its total home entertainment revenue.

If Paramount decides to fully commit to Redbox, it will be to 2014 and the deal is estimated to be worth $575 million.

Paramount’s move is so packed with common sense it almost makes you wonder why no one did it before. Universal, Fox and Warner Bros. all imposed delayed release windows against Redbox, which responded with lawsuits. Sometimes, things don’t have to be either/or, they can be both/and.

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There’s been a lot of Redbox news in the past couple of weeks, so rather than rehashing the same language over and over, here’s a handy historical link guide to the ruckus Redbox has been causing in Hollywood:

Aug. 18, 2009: Redbox v. Universal Will Move Forward – Redbox won a small victory in its first case.

Aug. 13: If Warner v. Redbox Was a Movie, It Would Be 28 Days Later – Warner decides it won’t play nice with Redbox.

Aug. 12: Redbox Riles Up the Movie Industry, Files Suit Against Fox – Redbox files its second studio suit over release windowing.

Aug. 11: Lions Gate Jumps Into Redbox Deal – Studios take sides, Lions Gate joins Sony in playing nice with Redbox.

Aug. 6: Fox Goes to War with Redbox – Studio imposes a release window against the kiosk company.

July 23: Netflix Q2 Call: More Streaming, More Redbox – In an earnings call, Netflix reasserts that Redbox is its biggest competitor.

July 22: Redbox Signs Sony to a $460 Million Distribution Agreement – Sony signs up with Redbox, first studio to do so.

Oct. 15, 2008: Redbox Sues Universal – Redbox says the studio broke antitrust laws with its release window.

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