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Lionsgate, redbox reach deal as studio-kiosk saga continues
August 11, 2009
Redbox and movie studio Lionsgate have announced a multiyear distribution deal that will provide redbox customers with greater access to the studio's new release, catalog and direct-to-DVD titles, the companies have announced in a news release.
In a break from recent comments and actions from other movie studios, Lionsgate president and co-chief operating officer Steve Beeks says the studio believes the DVD-rental kiosk model will help drive growth of the DVD business in the long run:
 | We believe that the redbox model will ultimately expand the business by increasing the number of impulse rentals and by putting packaged-media rentals in places where none existed previously. This agreement gives us tremendous placement for all our films and lowers the impact of low-priced, previously viewed DVDs being sold into the market, which we saw as a growing issue. We believe that this arrangement is a smart opportunity for Lionsgate in the current environment and a win-win for both companies. |  |
The companies haven't yet said how much Lionsgate stands to earn from the partnership. Redbox's most recent distribution deal with Sony Home Entertainment will garner the studio $460 million over the terms of the multiyear agreement.
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