Redbox Inks 20th Century Fox Deal for DVD Kiosk Rentals Seven Days After Home-Video Release

Redbox reached a new agreement with 20th Century Fox Home Entertainment that will let the operator of DVD rental kiosks offer Fox’s titles seven days after retail sell-through release dates.

In May, Redbox announced a similar agreement with Warner Bros. The deals come after Redbox’s parent company, Outerwall, went private last fall when it was acquired by private-equity firm Apollo Global Management.

Major studios had pressed Redbox for longer delays before their movies were available to rent in the DVD kiosks. But in a world awash in internet-streaming services, Redbox wants to move up the windows in order to get higher rental transaction volumes.

Under its existing pact with Universal Pictures, Redbox has a 28-day wait for theatrical titles after home-video release (the same window previously in effect with 20th Century Fox and Warner Bros.).

Meanwhile, Redbox has direct output deals with Lionsgate and Paramount Pictures for same day as home video release. Redbox currently does not have an agreement with Sony Pictures Entertainment and has not had a deal in place with Disney since 2012; instead, it purchases discs released by those studios on the open market.

“Our latest agreement with Fox continues to demonstrate a mutual commitment to providing consumers access to the freshest, best movies on the market at a great value,” said Redbox CEO Galen Smith.

Redbox recently announced a national kiosk expansion to add 1,500 net new rental kiosks in 2017, to stand at 41,500 across the U.S., with more planned for deployment in 2018. “Redbox’s national footprint ensures broad availability of Fox product to our rental consumers,” Dan Mackechnie, EVP of North America distribution at Twentieth Century Fox Home Entertainment, said in a statement.

Even with a plethora of services that offer instant, on-demand streaming like Netflix, Hulu and HBO Now, Redbox has carved out a defensible position in the home-video market with its cheap DVD rentals that start at $1.50 per day. To date, Redbox says customers have rented more than 5 billion titles at its kiosks.

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