Sony-Redbox deal worth $460 mil

DVD kiosk company won't resell studio's discs

In a regulatory filing following Sony's recently struck deal with Redbox, the DVD kiosk company's owner Coinstar said Tuesday that the studio will reap $460 million under terms of its multiyear pact.

Sony on Monday announced a deal to provide new releases directly to Redbox through September 2014. It's the first such agreement for the the dollar-rentals giant, which has had to secure studio titles through wholesalers. In exchange, Redbox agreed not to resell Sony discs, a practice that's part of its arrangement with wholesalers Ingram and VPD and effectively dumps recent releases into discount bins more quickly than might otherwise be true -- much to the annoyance of studio execs.

Meanwhile, if Universal prevails in its current court battle with Redbox -- Uni has banned wholesalers from dealing with the company during the first 45 days after a title's release -- it appears that Sony has the ability to mimic that ban, despite its agreement with the kiosk company.

Coinstar's 8K filing notes that "at Sony's discretion, the agreement may expire earlier" than its proscribed term. The provision would appear to give Sony the ability to tweak terms of any pact with Redbox.
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