Redbox Sues Warner Home Video

Coinstar Inc's Redbox sued Warned Home Home Video late Tuesday in a Delaware federal court over its new distribution terms.

Warner Home Video's new policy prevents Redbox from renting out its DVDs until 28 days after their release.

This lawsuit against Warner Home Video is in addition to Redbox's slew of legal battles. The company also sued News Corp's Twentieth Century Fox.

Redbox has distribution deals with Lions Gate Entertainment Corp and Sony Corp's Sony Pictures Home Entertainment.

"Some Hollywood studios have accused Redbox, which operates more than 15,000 bright red rental kiosks across the country, of depressing DVD prices and depriving studios of the kinds of revenue-sharing options they have with traditional video rental chains like Blockbuster," reported Reuters.

Although Redbox is in the middle of legal battles, the company said that it would continue distributing "major new releases, including from Warner Home Video."