October 25, 2012
Redbox, Redbox Instant by Verizon and Warner Bros. Home Entertainment Announce Multi-Year Content-Licensing Agreements
OAKBROOK TERRACE, Ill Redbox, a wholly owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), and Warner Bros. Home Entertainment have signed a multiyear agreement to bring Warner Bros.' Bluray Disc™ and DVD titles to Redbox® kiosks 28 days after their retail release dates.
In addition, Redbox announced plans to join the Digital Entertainment Content Ecosystem (DECE) and has agreed to promote UltraViolet through a program of mutually agreedupon promotions and marketing tactics designed to help retail customers discover UltraViolet.
"For the past 10 years, Redbox has been committed to giving consumers affordable access to newrelease entertainment,"said Galen Smith, senior vice president, Redbox. "This new agreement continues this commitment and represents an exciting new chapter in our relationship with Warner Bros., and an opportunity to explore our consumers' interest in UltraViolet."
For titles with street dates between January 1, 2013 and December 31, 2014, the studio will grant Redbox the rights to offer Warner Bros. theatrical titles on Bluray Disc and DVD 28 days after their retail release dates. The arrangement will improve the economics for both Warner Bros. and Redbox while ensuring consistent availability of Warner Bros. titles for the consumer.
"We are pleased to once again have a direct relationship with Redbox, providing their consumers access to our movies,"said Ron Sanders, president, Warner Home Video. "In addition, we look forward to working together on other key initiatives such as UltraViolet and creating promotional opportunities to offer consumers great content when and where they want it."
Warner Bros. Extends Digital and UltraViolet Deal to Redbox Instant™ by Verizon
Warner Bros. Home Entertainment has also inked a separate deal with Redbox Instant by Verizon, the joint venture of Redbox and Verizon set to launch later this year, which plans to offer digital movies together with the convenience and value of Redbox DVD and Bluray Disc rentals.
This agreement will make Warner Bros. titles available in VOD and EST formats and allow Redbox Instant by Verizon to support and distribute Warner Bros. UltraVioletenabled movies. The deal also covers a multiyear SVOD agreement supporting featurelength content.
"This agreement fits perfectly with Redbox Instant by Verizon's vision for bringing people the movies that matter, wherever and whenever they choose, using the devices and media they prefer, at home or away,"said Shawn Strickland, CEO, Redbox Instant by Verizon.
"We look forward to working with Verizon and Redbox to offer consumers a wide selection of great content that can be enjoyed, whether buying or renting, on a variety of devices, and in any format that fits their individual preferences,"said Thomas Gewecke, president, Warner Bros. Digital Distribution. "We are also pleased to have a new, direct relationship with the Verizon and Redbox joint venture to ensure their customers have consistent access to our movies."
About Warner Bros. Home Entertainment
Warner Bros. Home Entertainment, Inc. (WBHE) brings together Warner Bros. Entertainment's home video, digital distribution, interactive entertainment, technical operations and antipiracy businesses in order to maximize current and nextgeneration distribution scenarios. An industry leader since its inception, WBHE oversees the global distribution of content through packaged goods (Bluray Disc and DVD) and digital media in the form of electronic sellthrough and videoondemand via cable, satellite, online and mobile channels, and is a significant developer and publisher for console and online video game titles worldwide. WBHE distributes its product through third party retail partners and licensees, as well as directly to consumers through www.WBShop.com.
Redbox Automated Retail, LLC, a whollyowned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), offers newrelease DVD, Bluray Disc™ and videogame rentals through its network of conveniently located, selfservice kiosks. Redbox has rented more than 2 billion discs and is available at approximately 42,400 kiosks across 34,600 locations nationwide, including select Walgreens, Walmart and McDonald's locations, and leading grocery, drug and convenience stores. For more information, visit www.redbox.com.
About Redbox Instant by Verizon
Verizon and Redbox Digital Entertainment Services, LLC, was formed in February 2012 as a result of a joint venture between Verizon Communications Inc. and Redbox Automated Retail, LLC. A new brand, Redbox Instant by Verizon was created to offer U.S. consumers the best of both digital and physical worlds. All consumers have immediate access to newrelease DVD and Bluray Disc® movie rentals through more than 42,400 Redbox kiosks nationwide and can instantly view popular entertainment content anywhere, anytime, using the devices they prefer with a Redbox Instant by Verizon subscription and video ondemand streaming service. The venture will be available to the public by end of 2012. For more information, visit www.redboxinstant.com.
Safe Harbor for ForwardLooking Statements
Certain statements in this press release are "forwardlooking 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. Forwardlooking statements are not guarantees of future performance which may vary materially from performance expressed or implied in the forwardlooking statements. Differences may result from actions taken by Coinstar, Inc. or Redbox as well as those of third parties and from risks and uncertainties beyond our control. Such risks and uncertainties include, but are not limited to, the effect of a 28day rental window, the termination, nonrenewal or renegotiation on materially adverse terms of the agreements, the failure to abide by the terms and requirements of the agreements, the timing and availability of Redbox Instant by Verizon, and our role in the UltraViolet initiative. The foregoing risks and uncertainties are illustrative, but by no means exhaustive. For more information on factors that may affect future performance, please review "Risk Factors" described in our most recent Form 10K and Form 10Q filed with the Securities and Exchange Commission. These forwardlooking statements reflect Coinstar, Inc.'s expectations as of the date of this release. Coinstar, Inc. undertakes no obligation to update the information provided herein.