That's kinda the point of the lawsuit: they can't. Redbox is buying Disney movies at retail. The only way for Disney to stop Redbox from doing what they're doing is to stop selling physical copies of movies.

They are working on their own streaming service so they could stop selling retail copies. I'll admit this won't happen in the next 5 years (depending on the success of their streaming service).

They can stop selling the retail copies with the code included. That would pinch off Redbox, but upset customers.

They could stop offering download codes and instead allow people to register their retail copy to the streaming service with a copy of their receipt. Again, not very consumer friendly, but Disney is big enough to possibly get away with it.

I can see that happening in the next few decades. Once sufficient amount of people have reliable access to internet, the physical option can be dropped completely.

Which ends up hurting us (the consumers) in the end. I will be sad to see digital download codes go the way of the dodo so some corporate fat cat at Redbox can double dip into their profits.

You still have the legal right to make backup copies of physical media you legally purchase. You don't actually need the code, or disney's permission

yes i feel so sorry for those starving artists that are disney

At least, physical copies with codes.

Can Disney take their ball and go home without stopping selling their movies entirely?

Can't Redbox just go to a store and buy the movie and put it in their boxes?

That is what they're doing already, buying discs at retail. So no, Disney can't stop them unless they stop selling physical discs (or stop including digital copies with their physical discs).

They could also do a deal with Redbox to sell bulk rental-version discs at a lower price, which would not include the digital download code included with the retail copies.

But they won't, because Disney is the 800 lb. gorilla that can get whatever it wants by beating its chest and charging...

...the lobbying and litigating costs to its colossumongous IP protection budget.

Well, right, they could contract with them to mutually agree to stop by incentivizing them as you suggest, but I was talking more from a unilateral standpoint.