May 6, 2020
In particular Disney cited the use of digital codes included in branded DVD, Blu-ray Disc and Blu-ray 4K UHD releases as proprietary only to the customer of the original packaged media purchase.
Disney said the codes could not be sold separately and must be redeemed only by an individual who obtains the code in the original disc package that contains the code, or by a family member of that individual.
Disney said movie codes sold, distributed, purchased, or transferred inconsistent with this agreement would be invalidated.
In 2019, Disney and Redbox reached a settlement in a two-year-old lawsuit in which the kiosk vendor agreed not to separately sell digital download codes for movies included with combo disc packs.
Redbox, which doesn’t have a distribution deal with Disney, had been removing the codes from packaged-media purchases and selling them separately — claiming the move was protected under the “first sale doctrine” that allows legal consumers of a disc to sell or dispose of the intellectual property on their own.
Disney in 2017 filed litigation for breach of contract and other charges. Redbox countersued, accusing Disney of anticompetitive conduct to protect its pending streaming service, Disney+.
In the updated terms, Disney said anyone not willing to agree to movie code conditions could return the disc/code package for a refund subject to conditions provided in this link.