Paramount Home Entertainment (VIA) and Redbox (CSTR) Extend Trial License Agreement
Paramount Home Entertainment Inc., a Viacom Company (NYSE: VIA), and Redbox Automated Retail, LLC, a Coinstar (NASDAQ: CSTR) subsidiary, today announced that the companies will continue their relationship through at least June 30, 2010, lengthening the timeframe that Paramount has to extend the agreement through December 2014. This extension to the trial license agreement ensures redbox customers continued access to new release titles from PHE, including such high profile films as Up in the Air and The Lovely Bones.
Redbox and PHE first signed the trial license agreement in August 2009, with redbox agreeing to provide PHE with PHE rental data to evaluate the potential benefits of a lengthier contract. The extension provides redbox customers with access to new release DVD titles from PHE on the day of release until June 30, 2010. In exchange, redbox agrees to destroy PHE titles once the product is removed from kiosks.
If Paramount exercises the option, the agreement with redbox will run through December 2014 and contains an early termination right at PHE's discretion in December 2011.
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