CONSUMED BY MEDIA

What IS the nature of Disney’s Redbox deal?

Posted in Disney, DVD, Fox, Redbox, rentals by Diane on August 12, 2009

redboxHats off to Ben Fritz, who’s been working the Redbox story hard for the LAT. The paper just posted a Q&A with Redbox prexy Mitch Lowe, a veteran vidtailer who came to the kiosk company after stints at Netflix and operating a Bay Area video store chain with his brother. Lowe explains why Redbox sued Fox and Universal about their attempts to withhold discs from his company, and argues that Redbox’s business has been mostly additive for the industry, luring customers back to DVDs.

What I really wish, however, was that he pressed Lowe further on the nature of Redbox’s deal with Disney. Bob Iger recently alluded to a deal with Redbox, among other kiosk companies, that stipulates they not sell used discs. This deal was apparently struck a while ago. It is not a guaranteed distribution pact like the ones Sony and Lionsgate have recently forged with the company.

And as of a few days ago, Paramount was negotiating with Redbox, per the AP.

A very knotty story indeed.

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