Studio alleges Redbox took digital movie code printouts from retail copies of movies to sell in kiosks
Image/Photo Credit: Marvel
Disney is suing movie kiosk operator Redbox over what the Hollywood studio considers "blatant disregard" of the re-sale policy in regards to digital movie codes.
Like most Blu-ray movies sold in recent times, Disney releases usually come with a print-out featuring a code that users can use to claim a free digital copy of the movie. Redbox has been accused by Disney of selling these print-outs, usually at lower prices than what the same digital copy would attract at outlets like iTunes.
Redbox has distribution deals with other studios, for example Warner Bros. and 20th Century Fox, that sees the kiosk movie rental company receive copies of films for distribution a certain time period after these movies are released on home video. Redbox has no such deal with Disney, which has led to the company to buy retail copies of Disney releases for use in their kiosks. It's through this action that Redbox managed to obtain digital movie code print-outs.
Redbox's argument is that what it is doing is good for the consumer, allowing them to access lower prices for the same content. The discounts for consumers are often significant, with a digital copy of Disney's 'Guardians of the Galaxy Vol. 2' costing $19.99 on iTunes, but only $7.99 by buying a print-out at a Redbox kiosk.
Disney is seeking damages in the region of $150,000 per title infringed.