DOW JONES NEWSWIRES
Coinstar Inc.'s (CSTR) Redbox Automated Retail LLC filed a
lawsuit against Time Warner Inc.'s (TWX) Warner Home Video, the
latest move in its ongoing battle with major Hollywood studios over
its pricing strategies.
The company, which operates kiosks that rent DVDs for $1, sued
News Corp.'s (NWS) Twentieth Centry Fox last week, and Monday a
federal court ruled it could proceed with antitrust claims against
General Electric Co.'s (GE) Universal Pictures. It also has a suit
against Time Warner's Warner Bros.
News Corp. owns Dow Jones, the publisher of this newswire.
The move comes after Warner Home Video set distribution terms
that would prohibit Redbox from providing consumers access to its
movies until at least 28 days after public release.
Redbox President Mitch Lowe said Wednesday that the company was
committed to giving customers the new-release DVDs they want "at
the low price they want." He added the company will continue to
offer Warner Home Video's new-release movies in its kiosks.
Some studios, such as Lions Gate Entertainment Corp. (LGF) and
Sony Corp. (SNE), have entered into agreements with Redbox that
make their DVDs readily available. Those studios cite Redbox's
rapid growth as a reason to cooperate with the company.
Coinstar's shares were recently down 0.9% at $30.95.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com
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