Redbox claims that 20th Century Fox (s NWSA) and Warner Home Video (s TWX) are inhibiting the DVD rental kiosk company from purchasing DVDs from retailers like Wal-Mart and Target.
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.