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Redbox Drops Warner Bros. Lawsuit; Accepts Extended DVD Window

Redbox has ended its lawsuit against Warner Brothers Home Entertainment and will give in to the Time Warner (NYSE: TWX) unit’s demands for a longer lead time before the DVD kiosk operator makes its rentals available. The deal calls for new release DVD and Blu-ray titles to be made available to Redbox customers after a 28-day window. The settlement should clear the way for similar agreements with Redbox’s other legal targets, Universal Pictures and 20th Century Fox, which have also demanded a larger release window because of concerns the Redbox’s service would cannibalize shrinking DVD sales of home videos and VOD releases.

In return for giving up the suit, Warner has promised to offer Redbox reduced product costs and extended access to Blu-ray DVDs. Warner Brothers Home Video and redbox will be implementing delayed availability during the month of March and will reach a four-week window by March 23 with the release of The Blind Side. The new agreement will run through January 31, 2012. Redbox has also agreed to destroy Warner Brothers’ content following its lifespan in kiosks. Release