Redbox Adds Retail Interference Claim To Warner, Fox Lawsuit

Redbox kiosk

Redbox’s latest claim in its lawsuit against Twentieth Century Fox and Warner Home Video is that the two studios are encouraging retailers like Wal-mart to limit the number of DVDs that the kiosk-maker can buy. Redbox initially filed suit against Fox and Warner this summer, for trying to impose new release delays on its $1 per night movie rentals.

Redbox has since amended that suit to include allegations of retail sales interference, even though a judge dismissed its similar claim against Universal in August.

Video Business has text of Redbox’s complaint. In it, the company argues that the studios contacted various DVD distributors, including wholesalers like VPD and Ingram, as well as retailers like Wal-mart, Target and Best Buy, in the aims of getting confirmation that “they would not agree to sell new release DVDs to Redbox during the 30-day blackout period.” Redbox says it tried to buy new releases from the stores — in an attempt to circumvent the release windows — and was told that it could purchase no more than three copies of any new release.

With tens of thousands of kiosks, and plans to add at least 400 more by the end of this year, buying DVDs three at a time isn’t a feasible way for Redbox to do business. Still, some retailers impose strict quantity limits on DVD sales.

In a statement to Video Business, Warner said it filed a motion to dismiss Redbox’s “improper and baseless complaint” from the onset. “Now, instead of responding to Warner

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