Program Covers All Paramount Pictures Releases Through End of 2009
HOLLYWOOD, Calif., Aug. 25 -- Paramount Home Entertainment Inc. (PHE) and Redbox Automated Retail, LLC (Redbox), today announced that the companies have entered into a trial license program that will provide Redbox access to Paramount Pictures DVD releases through the end of 2009. As part of this program, PHE will receive access to detailed PHE rental data, which the studio will use to evaluate the impact and viability of the program.
PHE's titles will be made available to Redbox when the title is initially released regardless of whether the title is part of PHE's recently announced rental / Blu-ray sell-through strategy, or if it is to be released day and date for both sale and rental.
"This agreement is a positive step with Paramount. The agreement ensures that our customers will have increased access to some of the biggest titles of the year," said Mitch Lowe, president, Redbox.
Following the four-month trial period, PHE has the option to extend the program to 2014, with an out clause after two years. In addition, as part of the program with PHE, Redbox has agreed to destroy the product once Redbox removes it from the kiosk.
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 15,000 locations nationwide, including select McDonald's restaurants, leading grocery and convenience stores, and Wal-Mart 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 Paramount, including those beyond Coinstar's or Redbox's 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 Agreement. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance, including the relationship with Paramount, please review "Risk Factors" described in Coinstar's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar, Inc.'s expectations as of the date hereof. Coinstar, Inc. undertakes no obligation to update the information provided herein.
SOURCE Paramount Home Entertainment; Redbox Automated Retail, LLC
Laura Dihel, +1-630-932-9347
Brenda Ciccone of Paramount Home Entertainment, +1-323-956-8091