News Corp.'s Twentieth Century Fox is trying to slow the arrival of its DVDs in low-cost rental kiosks run by Redbox, the studio said Wednesday.
Redbox, a unit of Coinstar Inc., rents DVDs for just $1 a night, which some studios believe is contributing to the slumping DVD sales market. Studio revenue from disc sales to retailers and rental outlets is due to fall by about $850 million to $12.9 billion this year, according to Adams Media Research.
Fox had requested that Redbox keep its movies out of rental kiosks for 30 days, according to a person familiar with the situation. It also offered to continue to make its DVDs available on the official release date if Redbox agreed to better economic terms, such as sharing rental revenue, the person said. Redbox declined the offers.
Now, Fox is instructing its distributors to make its movies available to Redbox only after 30 days.
Mostly I just posted this for the alliteration. Carry on. EDIT Except that it's not really alliteration because the similar sound is at the end of the words not the front so whatever. Whatever. Just whatever.