Redbox Antitrust Lawsuit Against Universal to Proceed

Authored by Mark Hefflinger on August 18, 2009 - 9:08am.

Oakbrook Terrace, Ill. - Redbox, a unit of Coinstar (NASD: CSTR) that operates a network of DVD rental kiosks, said on Tuesday that a federal court has allowed its antitrust lawsuit against Universal Studios Home Entertainment (NYSE: GE) to proceed, denying the studio's motion to dismiss. "The Federal Court's decision marks an important step forward in our effort to protect consumers' right to convenient, affordable access to new release DVDs at redbox locations nationwide," said Redbox president Mitch Lowe.

"We appreciate the Court's thoughtful review of this issue and look forward to pursuing our claim and protecting our consumers' rights."

Redbox sued Universal after the company told distributors not to release DVDs to its kiosks until 45 days after their initial release.

Redbox also has a lawsuit pending against News Corp.'s (NYSE: NWS) 20th Century Fox over the DVD release window, while Warner Bros. (NYSE: TWX) last week said last week it will also begin delaying distribution to Redbox to 28 days after commercial release.

The company also launched a website, SaveLowCostDVDs.com, to spark consumer support in its battle with the studios.

Redbox operates a network of over 17,900 $1-per-night DVD rental kiosks.

Related Links:
http://snipurl.com/qgs6f

http://snipurl.com/qgsh3 (DMW previous coverage)

http://www.redbox.com

http://www.savelowcostdvds.com