Paramount, Redbox ink DVD deal

'Test' agreement lasts through the end of 2009

Paramount has struck a deal with Redbox to supply the dollar-rentals king with DVDs of studio titles for its network of 15,000 kiosks in retail locations nationwide.

The agreement -- like similar pacts inked by Sony and Lionsgate -- comes with a pledge by Redbox to stop reselling older DVDs on the used-disc market. But in a key difference, Par has agreed only to "test" a direct relationship until year's end, with the option of extending the relationship if things go well.

Disney now represents the only major studio yet to take a stance on the hot topic of what to do about dollar rentals. Universal, Fox and Warner Bros. have ordered wholesalers to stop supplying Redbox and other kiosk companies with DVD releases for the first month or so of discs hitting release.

Those refusing to deal with Redbox believe dollar rentals are undermining consumers' appetite for buying DVDs.
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