Disney had originally filed a lawsuit against Redbox back in late 2017 stating they were violating their copyrights by reselling used Disney Films. Redbox was required to buy Disney released films in a combo pack paying the full retail price in order to rent the disks from their kiosks. Redbox started pulling the digital codes from the films and selling them to consumers separately.
Earlier this year a judge found that the “codes are not for sale or transfer” warning was not clear enough to hold Redbox accountable for violating copyright or their agreement. Disney has since filed a new agreement and judgment making it clear that “only those who purchase the combo packs are allowed to redeem the digital download codes.”
Disney/ABC home Home Entertainment President Janice Marinelli says,
“Redbox is unfairly undercutting Disney’s licensees by charging substantially less for codes than the price licensees charge for digital downloads. The obvious consequence of Redbox undercutting of licensee prices is that licensees will likely sell fewer digital downloads of Disney movies and Disney will earn less revenue. Although the exact amount cannot be easily quantified.”
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Heather is a true Disney fanatic! When she isn't writing breaking news for Chip and Co. she spends her time booking amazing Disney vacation packages with MickeyTravels! If you don't find her behind the computer writing or booking travel you will find her spending her days visiting Disney with her 3 children.
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