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Studios get a hand from Wal-Mart and Target, take a swipe at redbox

January 27, 2010

Wal-Mart and Target are instituting purchase limitations on new release DVD movies, according to numerous sources, which could put a big crimp in redbox's style.

Both major retailers look to be setting a single purchase limit of five copies per customer, which could make redbox have to send even more employees out to buy the copies it needs to get around the new release embargo it's been shackled with by Warner Home Video, Universal Studios Home Entertainment and 20th Century Fox Home Entertainment.

A Wal-Mart spokeswoman confirmed to Home Media Magazine that the retail giant's purchase limitations would remain in place for the first 28 days after release, the same number of days Warner and Netflix agreed to earlier this year. Target appears to be keeping the purchase limitation to the first week after release.

The Coinstar-owned redbox already is involved in pending litigation against the studios — although there are rumblings it might come to an agreement similar to Netflix's with some or all of the studios — but it doesn't seem likely they'd have any grounds to go after Wal-Mart or Target in court over this latest news.
 
Could be this will only add impetus to redbox's pilot move into video game rental, as well as possible ventures into other media like Blu-ray. 

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