Redbox Settles With Disney, Agrees Not to Sell Digital Codes

Disney and Redbox have settled their two-year-old lawsuit, with the kiosk company agreeing to never sell digital codes.

The codes offering access to a digital movie copy are contained in disc combo packs that Redbox purchases so it can rent out the discs from its kiosks. Unlike other studios, Disney does not have a rental agreement with Redbox. The kiosk company, which purchases Disney titles at retail, had been splitting up the content of the combo packs, renting the discs and selling the codes.

U.S. District Court judge Dean D. Pregerson Nov. 14 filed a proposed stipulated consent judgment and permanent injunction based on a Nov. 12 settlement between the parties.

Redbox is “permanently restrained and enjoined from selling, offering, distributing, marketing or promoting (including entering into any contract providing for the sale, offer, distribution, marketing, or promotion) of codes,” read the filing.

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Facebook Sued for Fraud Over Video Ad Views

Facebook has been sued for fraud by a social media marketing firm on behalf of advertisers alleging the social media behemoth in 2016 knew for over year that it was overstating the average time users spent watching paid video ads.

The amended class-action suit – filed Oct. 16 by Crowd Siren in U.S. District Court in Oakland, Calif. – cites a Wall Street Journal story that reported Facebook overstated video viewing time from 60% to 80%. However, the new suit alleges viewership metrics were inflated from 150% to 900%.

“Because advertisers place higher value upon advertisements that are viewed for longer periods, they are willing to pay more for such advertisements,” read the complaint.

Facebook generated more than $17 billion in revenue from ads in 2015 – more than 95% of its overall revenue.

“Facebook engineers knew for over a year, and multiple advertisers had reported aberrant results caused by the miscalculation,” read the complaint. “Yet, Facebook did nothing to stop its dissemination of false metrics.”

The complaint claims Facebook employed a “no PR” campaign designed to “obfuscate the fact that [it] screwed up the math,” while continuing to generate revenue from inflated viewership numbers. Indeed, plaintiffs claim Facebook tried to smooth over the situation by using a new “average watch time” viewership data.

Extended video ad views are crucial. Plaintiffs cited third-party data that claimed when Facebook video ad viewership expands from three seconds to 10 seconds, ad recall increased to 57%, brand awareness increased more than 100%, and 64% increase in “purchase intent.”