Redbox Inks New Fox Distribution Agreement11 Jun, 2015 By: Erik Gruenwedel
Deal continues 28-day embargo on new-release titles
Redbox June 11 announced a new distribution agreement with 20th Century Fox Home Entertainment, maintaining a 28-day embargo on new-release titles through June 30, 2017.
"This arrangement with Redbox upholds our retail and rental strategy, while allowing us to continue to deliver the best available movies and TV shows in the market to our customers," Mike Dunn, worldwide president of 20th Century Fox Home Entertainment, said in a statement.
While fiscal details of the agreement were not disclosed, the pact follows a similar two-year renewal with Warner Home Video in March. Specifically, analyst Eric Wold with B. Riley & Co. in Los Angeles, said the new Fox deal includes for the first time revenue-sharing provisions should rental turns on select titles exceed certain limits.
"With all DVD agreements renewed with various levels of 1-2 year extensions through 2015/2017, this should remove any lingering concerns on the studio side or access to content (i.e., workarounds)," Wold wrote in a June 12 note.
Despite an industry shift toward digital distribution, Dunn said packaged media rentals remain a vital component to the home entertainment industry.
"We aggressively seek out ways to provide the greatest access to all our content while ensuring it makes the best sense for our business,” he said.
Indeed, Redbox is coming off a fiscal quarter that saw the kiosk operator record its best-ever rental week.
The company’s digital marketing network spans more than 90 million touch points, including 41 million email subscribers, 29 million app downloads, 16 million unique monthly visitors to redbox.com, 6.6 million SMS subscribers and 2 million Redbox Play Pass members.
Redbox's national footprint of nearly 35,000 locations generates about 350 million impressions at retail each week.
"As a leader in the category with over 700 million transactions per year, Redbox is actively working with our studio partners to maintain a strong base of value for their new release movies,” Mark Horak, president of Redbox, said in a statement.