|Redbox and Lionsgate Sign Multi-Year Distribution Agreement|
OAKBROOK TERRACE, Ill., Aug. 11 /PRNewswire/ -- Redbox Automated Retail, LLC, today announced a multi-year distribution agreement with Lionsgate® (NYSE: LGF - News), the leading next generation studio, expanding the depth and breadth of Lionsgate titles available at the more than 15,000 redbox DVD rental locations nationwide. The announcement was made by Steve Beeks, President and Co-Chief Operating Officer of Lionsgate, and Mitch Lowe, President of Redbox.
"The multi-year agreement with Lionsgate underscores our commitment to creating winning relationships for our customers and studio partners," said Mitch Lowe, president, redbox.
The agreement provides redbox customers with greater access to Lionsgate new release titles and popular catalog and direct-to-DVD titles including children's titles.
"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," said Steve Beeks, Lionsgate President and Co-Chief Operating Officer. "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."
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR - News), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox 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.
Lionsgate (NYSE: LGF - News) is the leading next generation studio with a strong and diversified presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. The Company has built a strong television presence in production of prime time cable and broadcast network series, distribution and syndication of programming through Debmar-Mercury, reality programming through its joint venture with ISH Entertainment and an array of channel platform assets. Its feature film business achieved a record box office performance in the recent January-March 2009 quarter, driven by the success of "Tyler Perry's Madea Goes To Jail," "My Bloody Valentine 3-D" and "The Haunting In Connecticut." The Company's home entertainment business has grown to more than 7% market share and leads the industry in its box office-to-DVD revenue conversion rate. Lionsgate handles a prestigious and prolific library of approximately 12,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate brand remains synonymous with original, daring, quality entertainment in markets around the world.
Certain statements in this press release 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 Lionsgate 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 Lionsgate, including those beyond our or Redbox's control. Such risks and uncertainties include, but are not limited to, the early termination or renegotiation on materially adverse terms of the Letter Agreement and failure to abide by the terms and requirements of the Letter 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 our relationship with Lionsgate, please review "Risk Factors" described in our 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.