Paramount Home Entertainment and Redbox Extend Trial License Agreement Through June 2010
Trial License Agreement to Provide Redbox Customers Ongoing Access to Paramount Titles
Paramount Home Entertainment Inc. (PHE) and Redbox Automated Retail, LLC (redbox), today announced that the companies will continue their relationship through at least June 30, 2010, lengthening the timeframe that Paramount has to extend the agreement through December 2014. This extension to the trial license agreement ensures redbox customers continued access to new release titles from PHE, including such high profile films as Up in the Air and The Lovely Bones.
"We are enjoying our business relationship with redbox and the data from our initial trial period has been encouraging," said Dennis Maguire, Worldwide President of Paramount Home Entertainment. "We are extending the time period that we have to exercise our option in order to give us more time to assess the long-term potential of this business relationship."
Redbox and PHE first signed the trial license agreement in August 2009, with redbox agreeing to provide PHE with PHE rental data to evaluate the potential benefits of a lengthier contract. The extension provides redboxcustomers with access to new release DVD titles from PHE on the day of release until June 30, 2010. In exchange, redbox agrees to destroy PHE titles once the product is removed from kiosks.
"The extension marks another positive step forward in our relationship with Paramount Home Entertainment," said Mitch Lowe, President, redbox. "This agreement provides our customers with access to Paramount titles the day of release at the more than 19,000 redbox locations nationwide and underscores our commitment to working with the industry."
If Paramount exercises the option, the agreement with redbox will run through December 2014 and contains an early termination right at PHE's discretion in December 2011.
About Paramount Home Entertainment
Paramount Home Entertainment (PHE) is part of Paramount Pictures Corporation (PPC), a global producer and distributor of filmed entertainment. PPC is a unit of Viacom (NYSE: VIA, VIA.B), a leading content company with prominent and respected film, television and digital entertainment brands. PHE is responsible for the sales, marketing and distribution of home entertainment products on behalf of various parties including: Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Famous Productions, Nickelodeon, MTV, Comedy Central, CBS and PBS and for providing home entertainment fulfillment services for DreamWorks Animation Home Entertainment.
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 500 million DVDs and is available at more than 19,000 locations nationwide, including select McDonald's restaurants, leading grocery and convenience stores, and Walmart and Walgreens locations in select markets. For more information, visit www.redbox.com.
Certain statements in the foregoing are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including phrases conveying expectation or intent and other expressions identifying future performance. The forward-looking statements in this release include statements regarding redbox's relationship with Paramount relating to, among other things, a DVD licensing arrangement. Forward-looking statements are not guarantees of future performance and actual results may vary materially from the results expressed or implied in such statements. Differences may result from actions taken by redbox (or redbox's parent Coinstar, Inc.) or Paramount, including those beyond such parties' control. Such risks and uncertainties include, but are not limited to, the failure to extend the term, the early termination or the renegotiation on materially adverse terms, of the licensing arrangement, and failure to abide by the terms and requirements of the arrangement. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance of redbox, including the relationship with Paramount, please review "Risk Factors" described in Coinstar, Inc.'s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, as well as other filings. These forward-looking statements reflect Coinstar, Inc.'s expectations (including redbox's) as of the date hereof. No obligation is undertaken to update the information provided herein.