MUMBAI: Paramount Home Entertainment (PHE) and Redbox Automated Retail (Redbox), will continue their relationship through at least 30 June , 2010, lengthening the timeframe that Paramount has to extend the agreement through December 2014.
This extension to the trial license agreement ensures Redbox customers continued access to new release titles from PHE.
"We are enjoying our business relationship with Redbox and the data from our initial trial period has been encouraging," said Paramount Home Entertainment Worldwide president Dennis Maguire. "We are extending the time period that we have to exercise our option in order to give us more time to assess the long-term potential of this business relationship."
Redbox and PHE first signed the trial license agreement in August 2009, with Redbox agreeing to provide PHE with PHE rental data to evaluate the potential benefits of a lengthier contract. The extension provides Redbox customers with access to new release DVD titles from PHE on the day of release until 30 June, 2010. In exchange, Redbox agrees to destroy PHE titles once the product is removed from kiosks.
"The extension marks another positive step forward in our relationship with Paramount Home Entertainment," said Redbox president Mitch Lowe. "This agreement provides our customers with access to Paramount titles the day of release at the more than 19,000 Mitch Lowe locations nationwide and underscores our commitment to working with the industry."
If Paramount exercises the option, the agreement with Redbox will run through December 2014 and contains an early termination right at PHE’s discretion in December 2011.