KIOSK OPERATOR REDBOX, SEES RED, SUES UNIVERSAL

Redbox, which operates the largest number of movie-rental kiosks in the country, has filed an antitrust suit against Universal Studios Home Entertainment. The company, jointly owned by McDonald's and Coinstar, claims that the General Electric unit has refused to provide DVDs to it unless it signs an agreement not to provide titles until 45 days after they are released and to destroy the discs after their rental cycle. Universal also reportedly is insisting on a share of the revenue from rentals. Redbox claims that no other studio has made similar demands and that Universal's will put Redbox at a disadvantage against other DVD renters.

16/10/2008