Paramount Home Entertainment and Redbox Extend Trial License Agreement Through June 2010
December 14 2009 - 8:45AM
PR Newswire (US)
Trial License Agreement to Provide Redbox Customers Ongoing Access
to Paramount Titles HOLLYWOOD, Calif., Dec. 14 /PRNewswire/ --
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 redbox customers 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:VIANYSE: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.
About Redbox 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 http://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. DATASOURCE: Paramount Home
Entertainment Inc.; Redbox Automated Retail, LLC CONTACT: Laura
Dihel, +1-630-932-9347, , for Redbox; or Brenda Ciccone of
Paramount Home Entertainment, +1-323-956-8091, Web Site:
http://www.redbox.com/
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