Redbox Renews Deal with Warner Bros. Through 2017

Redbox, which rents DVDs through vending machines dotted across the U.S., has extended its deal with Warner Bros. by two years, through March 31, 2017, maintaining a 28-day window on the studio’s Blu-ray Disc and DVD titles.

Deal comes after Redbox hired Mark Horak, previously president of the Americas at Warner Bros. Home Entertainment, as president about a year ago.

Redbox is an important partner,” Ron Sanders, president of Warner Bros. Worldwide Home Entertainment Distribution, said in a statement. “I am very pleased that we have finalized a new two-year agreement.”

Last year, Redbox reached similar renewals with Universal, Paramount and Lionsgate. But the DVD-kiosk vendor is facing headwinds, as consumers increasingly turn to subscription VOD services, according to analysts. Last October, Outerwall — Redbox’s parent company — and Verizon shuttered their SVOD joint venture, Redbox Instant by Verizon, after it failed to gain traction.

In December, Redbox raised the daily rental prices of DVDs and Blu-ray Discs, which Outerwall told investors would have an “adverse impact” on rental volumes. The daily rental rate for DVDs increased from $1.20 to $1.50, while the daily rental rate for a Blu-ray Disc increased from $1.50 to $2.

After the price hike by Redbox — and projected slower growth — the Outerwall board booted CEO Scott Di Valerio in January. The company is now headed by interim CEO Nora Denzel, formerly a top exec at Intuit and HP.

As of the end of 2014, Redbox operated kiosks in almost 35,000 locations, including at select Walmart, McDonald’s and Walgreens stores. Outerwall claims those points of presence generate more than 350 million impressions at retail per week.

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