Published:
18-Dec-09
Paramount Home Entertainment has extended its revenue-sharing agreement with Coinstar's Redbox to June 2010. The initial deal was signed in August 2009 and was binding for four months only; the extension includes an option whereby Paramount may further extend until December 2014, with a get-out clause expiring by December 2011.
Our take...
According to the initial terms of deal, Paramount was guaranteed a minimum of 18.5 per cent share of inventory in Redbox kiosks and access to data on consumer usage of its products through kiosks. Paramount has said that analysis of Redbox data for the first four months of revenue sharing has been 'encouraging' and extension is to allow longer-term assessment of the revenue-generating potential of Redbox kiosks. The move is related to a series of pro-active approaches from the studio that includes distributing digital movies to NCR's Blockbuster Express kiosks and to Kingston's flash memory products that will be sold pre-packed with Paramount movies.
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