Redbox, Paramount Seal Temporary Deal

Agreement is a tentative one that will end in December.

Last Updated: August 26, 2009 @ 7:08 AM

Paramount has struck a tentative deal with Redbox to supply the DVD kiosk company with its titles through the end of the year.

The major stipulation revolves around reselling the discs: Redbox has told the studio it will not sell its older inventory on the open market. Paramount has the right to extend the deal through 2014.

It’s a similar agreement that the upstart company has signed with Sony and Lionsgate, though only the Paramount deal is temporary.  

Redbox is suing Warner, Fox and Universal for the right to be supplied with $1 DVDs on day-of-release. The studios are taking the stance that cheap rentals undermine their sales potential and have instructed retailers to withhold DVDs for the first month.

PREVIOUS: "Flurry of Lawsuits Puts Redbox in Spotlight."

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