Universal Sues Redbox, Claims Redbox Owes Millions In Late Payments

LOS ANGELES, CA — Video-on-demand streaming and video rental company Redbox Automated Retail LLC is being sued by Universal Studio entities for nearly $17 million for allegedly being behind in payments for licensing fees.

Universal City Studios Productions LLP and Universal Studios Home Entertainment LLC brought the breach-of-contract lawsuit Friday in Los Angeles Superior Court, seeking $16.76 million. A Redbox representative could not be immediately reached for comment.

Universal Studios entity NBCUniversal creates world-class content distributed across its portfolio of film, television and streaming, while Redbox is known for distributing DVDs in red kiosks in such retail outlets as grocery stores and pharmacies, the suit states.

Redbox's content also is available through such avenues as one-time fees to download a file as well as through streaming.

In the first category of contracts, Universal licensed Redbox content for distribution via downloading and streaming and the second set of licensing contracts dealt with DVDs, the suit states.

But in summer 2022, Redbox stopped paying money owed, resulting in the current $16.76 million balance as of January, according to the suit.

Universal has sent Redbox multiple letters notifying it of the breaches and demanding payment, but Redbox has not given any justification for its alleged failure to bring the payments up to date, the suit states.

City News Service