Fox Wants 30-Day Delay on Kiosk Rentals6 Aug, 2009 By: Erik Gruenwedel
Twentieth Century Fox Home Entertainment is seeking a 30-day window for new release DVD movies prior to their availability at $1-per-day rental kiosks spearheaded by Redbox.
The studio said in a statement it supported the vending machine business in a “30-day window” following the initial home video street date.
“We invest enormous money, creativity and effort into make entertaining, high-quality Fox movies available throughout the world,” said the studio.
Redbox president and COO Mitch Lowe said the kiosk vendor was informed of Fox’s position late Wednesday.
“Redbox stands behind our convenience and value that we offer consumers, and we’re pleased to make DVDs available the day they are released,” Lowe said.
Eric Handler, media analyst with MKM Partners in Washington, D.C., said other studios would likely follow Fox’s lead unless offered close to the $460 million financial incentive Sony Pictures Home Entertainment received last month.
“Good negotiating tactic,” Handler said.
Indeed, Time Warner CEO Jeff Bewkes during a financial call last month reiterated his desire for a 30-day window on new releases prior to rental kiosks.
Fox’s position jolted Wall Street, which sent shares of CoinStar — Redbox’s parent — down 5% in midday trading Aug. 6.