Rental Service Sues Warner Home Video

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Coinstar Inc.’s Redbox Automated Retail announced Wednesday that it filed suit against Burbank’s Warner Home Video in response the Time Warner Inc. unit’s decision to withhold its new DVDs from Redbox for four weeks.

Redbox, an Oakbrook Terrace, Ill. company that rents low-cost DVD videos via retail kiosks, said it filed the suit in Delaware federal court. The suit contested Warner’s withholding of its DVDs until at least 28 days after their release.

“Warner Home Video’s actions come at the expense of consumers,” Redbox President Mitch Lowe said in the statement.

Redbox, which has been striking deals with some content providers and suing others, has faced resistance from companies because they want to maintain higher prices for their new releases. Redbox rents DVDs for $1 a day from more than 15,000 rental kiosks.

A U.S. district court earlier this week denied a motion by Universal Studios Home Entertainment to dismiss an antitrust case by Redbox. A suit also is pending against 20th Century Fox.

Redbox struck a distribution deal with Lions Gate Entertainment Corp. last week, and made a similar deal with Sony Pictures Home Entertainment in July.

A Warner spokesman did not immediately return calls for comment. Warner Home Video earlier said that low-cost mail-order rental services such as Netflix Inc. would have to agree to a revenue-sharing deal if they want access to DVDs the same day they go on sale in stores.

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