[qilo]

I was under impression that those direct deals with distributors are better deals for RedBox than buying discs in retail. Because if they don't get a good deal, they can always buy discs in retail for $20-ish something, and have no restrictions on renting or resaling them, and with no royalties or fees, because of "first sale doctrine".

[RobAley]

Yes, but then they only get them once they are on general retail sale, and so don't get the newest (to-rental) movies. They pay more when they have an agreement, but the theory is they make it back from increased rentals (because people can't just buy themselves a copy at the supermarket, and enough people are lazy enough to spend a bit more so they don't have to return it).