Redbox agrees with Warner Bros. on 28-day delay

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Associated Press

Posted on February 16, 2010 at 6:02 PM

LOS ANGELES (AP) — DVD rental kiosk chain Redbox has agreed to wait 28 days after Warner Bros. releases new movies for sale before offering to rent them for $1 a night.

The agreement announced Tuesday ends a lawsuit Redbox filed against Warner Bros.' home video unit last August.

Redbox alleged it was being unfairly prevented from buying discs from wholesalers.

The multiyear deal will now lower the cost Redbox has to pay to stock its machines, and help maintain the price of new-release DVDs that go on sale.

Without a direct deal, Redbox had been forced to pay higher prices from retailers. The company is a unit of Bellevue, Wash.-based Coinstar Inc.

Warner Bros. is a division of Time Warner Inc.

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