MUMBAI: Paramount Home Entertainment Inc. will be extending its revenue sharing license agreement with redbox, providing it access to PHE DVD and Blu-ray titles to rent at its approximately 22,000 kiosk locations on the same day they are released in the sell-through market. PHE exercised its option following results from a 10-month analysis of DVD sell-through and rental performance.
"After analyzing the data from our test period we have concluded that redbox day-and-date rental activity has had minimal impact on our DVD sales. By granting redbox day-and-date availability we are allowing the consumer a choice of how to consume our movies while maximizing the profitability of our releases in the home entertainment window. We are looking forward to continuing a productive and mutually beneficial relationship with redbox," said Dennis Maguire, Worldwide President of Paramount Home Entertainment.
"We are delighted to continue our relationship with Paramount to provide consumers with convenient, timely and affordable access to their favorite movies. We look forward to supporting Paramount movie releases through joint marketing programs. This arrangement is a win, win and win – for consumers, Paramount and redbox," said Mitch Lowe, president, redbox.
Redbox and PHE first signed a trial license agreement in August 2009, with redbox agreeing to provide PHE rental data to evaluate the potential benefits of a longer term contract.
