Editing Redbox (section)

===Purchase by Coinstar===
In 2005, [[Coinstar]] bought 47% of the company for $32 million,<ref name="CoinstarFinancialStatements">{{cite web|url=http://edgar.secdatabase.com/1091/95013408014521/filing-main.htm |title=COINSTAR INC, Form 10-Q, Quarterly Report, Filing Date Aug 7, 2008 |publisher=secdatabase.com |access-date =May 15, 2018}}</ref> after unsuccessful attempts to sell half the company to [[Blockbuster (retailer)|Blockbuster]] and [[Netflix]].<ref>{{cite book|url=https://books.google.com/books?id=sodDcL2yhsIC&pg=PT163|page=163|title=Netflixed: The Epic Battle for America's Eyeballs|first=Gina|last=Keating|date=11 October 2012|publisher=Penguin|isbn=9781101601433|via=Google Books}}</ref> In early 2008, Coinstar exercised an option to increase its share to 51%,<ref name="CoinstarFinancialStatements"/> before acquiring the remainder for $169–176 million in February 2009.<ref>{{cite news |last1=Staff |first1=Edit |title=DVD Kiosk Firm Redbox Bought Out By Coinstar For Up To $176 Million; McDonald's Paid Out |url=https://gigaom.com/2009/02/13/419-dvd-kiosk-firm-redbox-bought-out-by-coinstar-for-up-to-176-million-mcdo/ |access-date=February 20, 2020 |work=gigaom.com |date=February 13, 2009}}</ref> While traditional brick and mortar rental stores were closing at a high rate, Redbox moved into existing retail locations such as supermarkets, and placed kiosks within them or outside of them to gain access to that consumer base.<ref>{{cite book|url=https://books.google.com/books?id=aY1q881PnNcC&pg=PT56|page=56|title=Streaming: Movies, Media, and Instant Access|first=Wheeler Winston|last=Dixon|date=19 April 2013|publisher=University Press of Kentucky|isbn=978-0813142180|via=Google Books}}</ref>

Competitors included Netflix, Blockbuster, [[Movie Gallery]] and its subsidiary [[Hollywood Video]], [[West Coast Video]], and [[Family Video]] along with other [[DVD-by-mail|DVD by mail]] rental services. [[Mitch Lowe]] joined Redbox in 2003, after spending five years as an executive at Netflix. At Redbox, he started first as a consultant and then as VP of Purchasing & Operations. In 2005, he became the Chief Operating Officer.<ref>{{cite news | url=http://www.homemediamagazine.com/redbox/six-questions-redboxs-mitch-lowe-16603 | title=Six Questions: Redbox's Mitch Lowe | publisher=Home Media Magazine | date=July 31, 2009 | access-date=September 7, 2009 }}</ref> Lowe owned and operated a video rental company named Video Droid from 1982 through 1997. Video Droid attempted a VHS rental vending machine concept, though the idea was quickly deemed impractical.<ref name="nyt03">{{cite news|title=Movie Studios See a Threat in Growth of Redbox|work= [[The New York Times]] |last=Barnes|first=Brooks|date=September 6, 2009|url=https://www.nytimes.com/2009/09/07/business/media/07redbox.html?ref=technology}}</ref> Lowe was named President of Redbox in April 2009.

With growing concern in 2009 that DVD kiosks might jeopardize movie studio income from DVD sales and rentals, three major movie studios, [[20th Century Studios|20th Century Fox]], [[Warner Bros.]], and [[Universal Pictures|Universal Studios]], each refused to sell DVDs to Redbox until at least 28 days after their arrival in stores.<ref name="nyt03" /> Fox and Warner Bros. represented 62% of home video rental revenue in 2008 and 2009.<ref name="pali02">{{cite web|url=http://paliresearch.com/2009/08/18/redboxs-lawsuit-now-stands-on-only-one-shaky-leg-as-court-dismisses-first-sale-complaint/|archive-url=https://web.archive.org/web/20221113120432/http://paliresearch.com/2009/08/18/redboxs-lawsuit-now-stands-on-only-one-shaky-leg-as-court-dismisses-first-sale-complaint/|url-status=dead|archive-date=November 13, 2022|title=Redbox's Lawsuit Now Stands On Only One Shaky Leg as Court Dismisses First Sale Complaint|last=Greenfield|first=Richard|date=August 18, 2009|website=Pali Research}}</ref><ref>[http://www.homemediamagazine.com/redbox/analyst-dismissal-redbox-claims-could-undermine-kiosk-viability-17222 "Analyst: Dismissal of Redbox Claims Could Undermine Kiosk Viability."] Home Media Magazine, Erik Gruenwedel, October 5, 2009. {{Webarchive|url=https://web.archive.org/web/20091009030538/http://www.homemediamagazine.com/redbox/analyst-dismissal-redbox-claims-could-undermine-kiosk-viability-17222 |date=October 9, 2009 }}</ref> Redbox responded by [[Redbox Automated Retail LLC v. Universal City Studios LLLP|filing lawsuits, first, against Universal]] in October 2008,<ref>[http://www.redbox.com/Press/PressReleases/Redbox_Files_Lawsuit_Against_Universal_Press_Release.pdf "Redbox Files Lawsuit Against Universal."] Redbox Press Release, October 13, 2008</ref> then against 20th Century Fox and Warner Bros. in August 2009.<ref>[https://www.reuters.com/article/rbssEntertainmentProduction/idUSN1211720620090812?sp=true "Redbox sues 20th Century Fox over DVD rentals."] Reuters, Tom Hals and Sue Zeidler, August 12, 2009.</ref><ref name="bloomberg">{{cite news| title= Coinstar's Redbox Sues Warner Unit Over Video Terms| publisher= Bloomberg News| first1= Sophia| last1= Pearson| first2= Phil| last2= Milford| date= August 19, 2009| url= https://www.bloomberg.com/apps/news?pid=20601103&sid=apskdfBT_Zms| url-status= dead| archive-url= https://web.archive.org/web/20090122224028/http://www.bloomberg.com/apps/news?pid=20601103| archive-date= January 22, 2009}}</ref> In August 2009, the federal judge hearing the Universal case allowed the antitrust claim to continue.<ref>{{cite web| url= http://www.homemediamagazine.com/redbox/judge-throws-out-some-redbox-claims-universal-suit-16764| title= Judge Throws Out Some Redbox Claims in Universal Suit| work= Home Media Magazine| first= Chris| last= Tribbey| date= August 17, 2009| access-date= October 5, 2009| archive-url= https://web.archive.org/web/20090827130154/http://www.homemediamagazine.com/redbox/judge-throws-out-some-redbox-claims-universal-suit-16764| archive-date= August 27, 2009| url-status= dead| df= mdy-all}}</ref> In October 2009, 20th Century Fox and Warner Bros. filed motions to dismiss Redbox's lawsuits against them.<ref name="homemedia1">
{{cite web |title = Fox Says Redbox Lawsuit is Flawed |work         = Home Media Magazine |first = Erik |last = Gruenwedel |date         = October 1, 2009 |url = http://www.homemediamagazine.com/redbox/fox-says-redbox-lawsuit-flawed-17210 |access-date  = October 5, 2009 |archive-url  = https://web.archive.org/web/20091005011952/http://www.homemediamagazine.com/redbox/fox-says-redbox-lawsuit-flawed-17210 |archive-date = October 5, 2009 |url-status = dead|df = mdy-all }}</ref><ref name="homemedia2">{{cite web | title= Warner Also Seeks Redbox Lawsuit Dismissal | work= Home Media Magazine | first= Erik | last= Gruenwedel | date= October 2, 2009 | url= http://www.homemediamagazine.com/warner/warner-also-seeks-redbox-lawsuit-dismissal-17215 | url-status= dead | archive-url= https://web.archive.org/web/20091008132226/http://www.homemediamagazine.com/warner/warner-also-seeks-redbox-lawsuit-dismissal-17215 | archive-date= October 8, 2009 }}</ref> During that time, Redbox continued to rent films from the companies, purchasing them at retail from places like [[Walmart]] instead of receiving them from the movie studios, which in some cases saved Redbox money due to the discounted prices offered by retailers.<ref name="auto">{{cite book|url=https://books.google.com/books?id=yW0oYGaPcLEC&pg=PT192|page=192|title=Decisive: How to Make Better Choices in Life and Work|first1=Chip|last1=Heath|first2=Dan|last2=Heath|date=26 March 2013|publisher=Random House of Canada|isbn=9780307361141|via=Google Books}}</ref> Other major studios, such as [[Sony Pictures]], [[Paramount Pictures]], and [[Starz Entertainment|Lionsgate]], signed distribution deals with Redbox.<ref name="nyt03" /> [[The Walt Disney Company]] permits third-party distributors to sell to Redbox, but did not enter into a direct relationship with the company.<ref name="nyt03" /> Both sides of the studio lawsuits pointed to these revenue-sharing deals to shore up their argument, with Redbox president Mitch Lowe saying, "our growth can lead to theirs [the studios' growth]. For example, Redbox currently estimates we will pay more than a combined $1 billion over the next five years to Sony, Lionsgate and Paramount to purchase and then rent new-release DVDs to consumers,"<ref>{{cite web| url= http://www.thewrap.com/blog-entry/redbox-ceo-we-are-engine-industry-growth-8165 |title= Redbox Chief: 'We Are an Engine for Industry Growth'| website= TheWrap.com| first= Mitch |last= Lowe| date= October 2, 2009}}</ref> while Warner Bros. says the deals are proof that far from being shut out by [[Cinema of the United States|Hollywood]], "Redbox's business has thrived since its suit against Universal, underscored by lucrative distribution deals with Paramount Home Entertainment, Sony Pictures Home Entertainment, and Lionsgate."<ref name="homemedia2" /> Redbox entered into an agreement with Warner Bros. on February 16, 2010,<ref name="warnersettle">{{Cite press release |title       = Warner Bros. Home Entertainment and Redbox Announce a Multi-year Distribution Agreement |publisher   = Redbox, Warner Bros. Home Entertainment |date = February 16, 2010 |url= http://redboxpressroom.com/releasesPressRelease_WarnerBros_021610.html |access-date  = May 23, 2010 |url-status = dead |archive-url  = https://web.archive.org/web/20100530194502/http://redboxpressroom.com/releases/PressRelease_WarnerBros_021610.html |archive-date = May 30, 2010}}</ref> followed by Universal<ref name="unisettle">{{Cite press release  | title = Universal Studios Home Entertainment and Redbox Forge Distribution Agreement  | publisher = Redbox, Universal Studios Home Entertainment  | date = April 22, 2010 | url = http://redboxpressroom.com/releases/PressRelease_Universal_042210.html | access-date = May 23, 2010 | archive-url = https://web.archive.org/web/20100514150001/http://redboxpressroom.com/releases/PressRelease_Universal_042210.html | archive-date = May 14, 2010 | url-status = dead | df = mdy-all  }}</ref> and Fox<ref name="foxsettle">{{Cite press release |title = Twentieth Century Fox and redbox Announce Distribution Agreement |publisher    = Redbox, Twentieth Century Fox Home Entertainment |date         = April 23, 2010 |url = http://redboxpressroom.com/releases/PressRelease_20thCenturyFox_042210.html |access-date = May 23, 2010 |archive-url  = https://web.archive.org/web/20100514145701/http://redboxpressroom.com/releases/PressRelease_20thCenturyFox_042210.html |archive-date = May 14, 2010
 |url-status = dead |df           = mdy-all}}</ref> on April 22, 2010. 

In the agreements which settle the lawsuits, Redbox agreed to not make available for rental films from these studios until 28 days after their initial home-video releases. Redbox continued to sign additional and new distribution deals with these and other movie studios;<ref>{{cite web|url=https://www.reuters.com/article/idUSFWN1F80Q4|title=BRIEF-Redbox, Paramount announce new distribution agreement|date=19 January 2017|via=Reuters}}</ref> by 2017, titles from Fox and Warner became available on Redbox seven days after their initial home-video release.<ref>{{cite web|url=https://www.engadget.com/2017/08/26/redbox-deals-with-sony-and-lionsgate-bring-discs-with-no-delay/|title=Redbox deals with Sony and Lionsgate bring discs with no delay|publisher=[[Engadget]]|date=26 August 2017|access-date=22 October 2017|first=Richard|last=Lawler}}</ref>