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Lionsgate Renews Redbox Kiosk Deal

Lionsgate has renewed a multi-year deal with Redbox that will keep supplying the kiosk giant with DVDs of its movies, the companies announced Tuesday.

The pact will likely elicit a sigh of relief from investors in Redbox parent company Outerwall because it is the first of multiple deals with the studios that are the primary content suppliers. One analyst last month issued an alarming note suggesting delays could occur or deals could fall apart if the studios pressed for too high a renewal price.

The deal was an important one for Redbox given Lionsgate has franchises in its portfolio that do well in home video, including “The Hunger Games” and “Twilight.” Terms of the deal were not disclosed.

“Our agreement with Lionsgate continues our track record of establishing win-win relationships with content producers,” said Mark Horak, president of Redbox.  “We look forward to continuing to delight our customers with quality, new release content from Lionsgate.”

“We’re pleased to extend our long-standing partnership with Redbox,” said Ron Schwartz, president of home entertainment at Lionsgate. “We remain committed to expanding the choices and enriching the quality and excitement of the home entertainment experience for our consumers, and our Redbox relationship is an important part of this commitment.”

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