Viacom Chief Defends Rental Revenue Accord
Viacom Inc., Blockbuster Inc.’s majority owner, didn’t pressure film studios to join a plan giving movie makers a cut of video rental revenue in exchange for discounts on films, Chairman Sumner Redstone testified.
Redstone was the first witness to testify in the case brought by independent video retailers who claim the 1997 arrangement between the world’s biggest video rental chain and the studios was intended to drive them out of business.
“I never asked for, nobody offered and I never received” an exclusive deal with any of the studios, Redstone said during his four hours on the stand in San Antonio federal court.
Three video store owners sued for damages and the same deal as Blockbuster.
If Blockbuster loses, it probably will face dozens of additional lawsuits from independent retailers.
Other defendants in the case include Sony Corp.’s Columbia TriStar Home Entertainment, Walt Disney Co.’s Buena Vista Home Entertainment, News Corp.’s 20th Century Fox Home Entertainment and Vivendi Universal’s Universal Studios Home Video.
Shares of Dallas-based Blockbuster fell $1.18 to $26.20 on the New York Stock Exchange.
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