Redbox Says Fox Is Trying to Kill It

U.S. Court News

Courthouse News reports that Redbox, the DVD kiosk rental giant, says Twentieth Century Fox is trying to kill its business by cutting off the supply of DVDs because Redbox refused to agree to a 30-day "blackout period," during which it will withhold new releases. In its antitrust complaint in Delaware Federal Court, Redbox claims Fox is conducting an illegal boycott in restraint of trade.

Redbox says Fox ordered its distributors, Ingram Entertainment and Video Product Distribution, to cut Redbox off.

In remarkably self-serving language written in high dudgeon, Redbox cites "tough economic times," during which "people simply need some form of release from their financial pressures, even if just for a couple of hours." Redbox says it provides this through its cheap movies, but Fox demands a "business-killing blackout period ... during which consumers would be allowed to procure these DVDs only through more expensive channels ... despite the fact that consumers are being battered by one of the toughest economic recessions in history."

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