Paramount delays decision on 5-year deal with Redbox

Paramount Pictures has put off a decision on whether to enter into a five-year deal that has riled half the Hollywood studios.

The Viacom Inc.-owned studio has extended through June its trial agreement with $1-a-night DVD kiosk company Redbox that was set to expire Dec. 31. Under the deal struck in August, Paramount committed to provide new movies to Redbox in exchange for data that would help it decide whether low-priced rentals were hurting sales.

Paramount’s ultimate decision is being closely watched, because it could indicate where most of the Hollywood studios stand on supporting the video rental company, whose growth has mushroomed despite a big drop in DVD sales.  LA Times

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