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Disney Suing Redbox For Selling Digital Movie Codes

1 Dec, 2017 By: Erik Gruenwedel

The Walt Disney Co. has filed a lawsuit against Redbox, alleging the kiosk vendor is illegally selling digital codes to some of its movies.

The suit, filed Nov. 30 in U.S. District Court in Los Angeles, alleges copyright infringement, breach of contract, false advertising and unfair competition, and seeks $150,000 in damages per statutory award, according to the complaint.

Redbox in October began quietly selling digital codes — typically included in Blu-ray Disc releases — of select Disney movies accessible on the kiosk vendor’s website and playable on compatible media devices.

Dubbed “Digital Codes At The Box,” the program offered digital access to Beauty and the Beast, Alice Through the Looking Glass, Guardians of the Galaxy Vol. 2, Maleficent, Inside Out, The Jungle Book, Pete’s Dragon, The BFG, Rogue One: A Star Wars Story, Doctor Strange, Finding Dory and Moana.

Digital codes range from $5.99 to $19.99 in price depending on the title and available on the website’s DVD/Blu-ray Disc link.

Disney, in the complaint, said the codes are not available separately for sale or transfer.

“Their actions violate our contracts and copyrights, and we have filed this action to stop Redbox’s unauthorized conduct,” said a Disney representative as reported by .

Redbox, in a statement, said it doesn’t comment on pending litigation, adding "we feel very confident in our pro-consumer position."

The suit comes as Disney has upgraded its Movies Anywhere digital platform to include rival studio content, with the exception of Lionsgate and Paramount Pictures.

Disney is also planning to launch branded standalone over-the-top video platforms, beginning with ESPN early next year. Follow up services for Star Wars, Marvel and Pixar are likely as well.

About the Author: Erik Gruenwedel

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