Last week Fox announced that it would support the vending machine business starting 30 days following our initial home video release date. Fox believes this would provide the consumer with high value, broad title choice and quality access to Fox movies. We invest enormous amounts of money, creativity and effort to make entertaining, high quality Fox movies available throughout the world.  In the home entertainment business, Fox offers its movies through brick and mortar retail outlets and online retailers, including both national and regional chains and small mom-and-pop stores, offering consumers a wide selection of new releases and catalog for both rental and purchase.  Fox's various business models have elaborate infrastructures and employ significant numbers of people to provide quality customer service and the best consumer experience. Our desire is to maintain for Fox movies a thriving network of distribution serving all types of consumer preferences, on reasonable business terms for Fox as well as our distribution partners.

Fox spent several weeks trying to negotiate a deal with Redbox that offered Redbox varying terms that gave Redbox the option of purchasing DVDs either on the initial DVD release date or with a 30 day window.  Unfortunately, Fox and Redbox could not reach an agreement.  Redbox has now filed a lawsuit challenging Fox's ability to make business decisions that Fox believes are in its best interest as well those of consumers.  This lawsuit aims to limit Fox's ability to make legitimate business decisions, and Fox believes it will prevail in defeating Redbox's meritless claims.