Disney Sues Redbox, Hoping To Block Digital Movie Sales (marketwatch.com)

phalse phace writes: About 1 month ago, Redbox started selling through their kiosks slips of paper with codes on them that lets the buyer download a digital copy of a Disney movie.But Disney says that's a no-no and this week it sued Redbox in an attempt to stop the code sales. According to Marketwatch: "Walt Disney sued Redbox on Thursday in an attempt to stop the DVD rental company from selling digital copies of its movies. Privately held Redbox last month began offering consumers codes they can use to download a digital copy of a Disney movie. Redbox charges between $7.99 and $14.99 for slips of paper with the codes to download Disney films such as "Cars 3" and "Star Wars: The Force Awakens." That is less than those movies cost to buy and download from Apple's iTunes Store. Redbox is only offering digital copies of Disney movies because it doesn't have a distribution arrangement with the studio and buys retail copies of its discs to rent to customers. Those retail DVDs come with digital download codes."

Comments

Re:The codes come with the discs, and are paid for

[atrex]

Not sure if it all Disney movies have this statement on the box or not, but, you can see here on the back of Disney's Pirates of the Caribbean: Dead Men Tell No Tales that the codes are explicitly not for sale or transfer. So, Disney actually does have an argument in this case:
Dead Men Tell No Tales Blu-ray Cover