The 20-year-old DVD rental kiosk business Redbox will shutter, with a Delaware bankruptcy court judge approving parent company Chicken Soup for the Soul Entertainment's request to shift its proceedings from Chapter 11 restructuring to Chapter 7 liquidation. 

Also read: End of the Line for Chicken Soup — Redbox Owner Files for Bankruptcy

Redbox’s 24,000 remaining kiosks will be closed and sold at auction, and the 1,033 remaining Redbox employees will lose their jobs. 

The move marks an inglorious in for two venerable niche media brands, after Chicken Soup made an ill-fated decision two years ago to take on $325 million in debt by acquiring Redbox. 

At the time, Redbox — which had recently conducted a SPAC IPO — was struggling in its attempt to convert a user base of streaming late adopters into regular AVOD users. 

Chicken Soup fared no better in this quest. And now, Redbox — a business first incubated in Chicago in 2004 by former McDonald’s executive Gregg Kaplan, and which peaked in 2012 with 43,500 kiosk locations nationwide — is no more. 

Chicken Soup for the Soul, meanwhile, started in the late 1990s as a line of self-help books out of Cos Cob, Connecticut. 

Chicken Soup for the Soul Entertainment has confirmed what has appeared inevitable, at least recently, filing for Chapter 11 bankruptcy protection in Delaware. 

“In connection with the filing, we have applied for approval of a debtor in possession [DIP] loan," the owner of the troubled Redbox DVD rental kiosk business told employees Saturday. "Upon court approval, we expect payroll to be funded early in the week and funding for this upcoming week’s payroll to also be secured. We also expect to have the funds to reinstate medical benefits back to May 14, 2024 and going forward. We will provide regular updates.”

Chicken Soup made an ill-fated purchase of Redbox two years ago, taking on $325 million in debt. 

Lately, the company's troubles seemed to accelerate to terminal velocity. 

Last week, after missing a $4 million payment to NBCUniversal, a Los Angeles Superior Court judge ordered Chicken Soup to pay the conglomerate the total $16.7 million it owes it. 

Earlier this month, chairman and CEO William J. Rouhana fired everyone on the Chicken Soup board, including his wife, after the company failed in its quest to meet the terms of a debt forbearance agreement with creditors. 

Per Saturday's filing, Chicken Soup listed total debt o $970 million, with creditors including Sony, Warner Bros. Discovery, Paramount, Lionsgate and Walmart, among others. 

Investors, for the most part, have already lost their money, with the stock trading at 14 cents a share. 

Liquidation would seem to spell the end of a company that started in the late 1990s as a line of popular self-published self-help books. 

The fate of Redbox and its parent company, Chicken Soup for the Soul Entertainment, has somehow become seemingly even more dire, with the DVD rental kiosk company missing a key payment deadline last week to NBCUniversal.

Last week, a Los Angeles Superior Court ordered "Redbox Automated Retail" to pay the entire $16.7 million it owes the conglomerate after it missed paying a $4 million installment. (Lowpass newsletter publisher Janko Roettgers got ahold of the complaint first and published it here.)

Also read: Chicken Soup Fails to Meet Terms for $175 Million Debt Forbearance Agreement, Purges Board

The missed payment comes after Chicken Soup failed to close on a $175 million debt forbearance agreement with its key creditors, and also, as Next TV first reported last week, after Chairman and CEO William J. Rouhana fired everyone on the board, including (according to Roettgers) his wife.

Chicken Soup assumed $325 million in debt when it purchased Redbox two years ago, aiming to transition a list of around 40 million regular kiosk users into AVOD streaming consumers. 

In its belated April 29 10-K filing, Cos Cob, Connecticut-based Chicken Soup reported a net loss of $636.6 million for 2023 versus $111.2 million in 2022. The company said that without the ability to somehow generate additional financing, it would "likely require us to diminish or halt operations and seek protection under applicable bankruptcy laws.”

Chicken Soup for the Soul Entertainment failed to meet the terms outlined by its primary creditors in an April debt forbearance agreement, despite several extensions, a company 8-K/A filing to the SEC last week reported. 

And on Monday, another 8/-K filing revealed that William J. Rouhana, chairman and CEO of the troubled Redbox parent company, dismissed everyone from the board of directors save for himself. 

These developments would seem to indicate a near certain bankruptcy for Chicken Soup Entertainment, which in 2022 entered into what has turned out to be a disastrous deal to acquire DVD kiosk operator Redbox and take on $325 million in debt in the process.

In April, the company carved out a last-ditch forbearance agreement with its primary lenders, which would allow Chicken Soup to try to generate $175 million through "one or more sales leaseback transactions." 

Also read: Chicken Soup for the Soul Raises $175 Million, Hopes to Avoid Bankruptcy

Upon the successful raising of that $175 million, Chicken Soup was to immediately pay $75 million towards its debt. As of June 10, after several extensions, the company was apparently unable to come up with the proceeds, per its SEC filing. 

Monday's 8-K filing says that, "Under Section 141(k) of the Delaware General Corporation Law, (DGCL), 'any director or the entire board may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors' except in limited cases.

"On June 11, 2024, Chicken Soup for the Soul Entertainment, Inc. (the 'Company') was notified that the holder of more than 75% of the voting power represented by the Company’s outstanding Class A and Class B common stock had acted by written consent under the DGCL to remove without cause all members of the Company’s board of directors and the board of directors or board of managers of each subsidiary of the Company, other than William J. Rouhana, Jr."

In its belated April 29 10-K filing, Cos Cob, Connecticut-based Chicken Soup reported a net loss of $636.6 million for 2023 versus $111.2 million in 2022. The company said that without the ability to somehow generate additional financing, it would "likely require us to diminish or halt operations and seek protection under applicable bankruptcy laws.”

Short-selling season appears to be on for troubled Chicken Soup for the Soul Entertainment, with Next TV receiving anonymous "tips" late this past week from the finance community about the company's latest NT-10Q filing. 

For those of us without formal business educations, NT-10Q is the document a company files to the SEC when it deems itself unable to assemble its normal 10-Q quarterly earnings. 

And for investors who had hoped the forbearance agreement Chicken Soup announced earlier this month might signal a turnaround, the document contained yet more bad news. 

Also read: Chicken Soup Reports $637 Million Loss for 2023, Preps Investors for Bankruptcy

In the filing, the company tells the SEC that assembling first-quarter earnings data "would have diverted the attention" from Chicken's Soup's effort to convert equity, generate $175 million of cash, and forestall payments to key lenders through the summer. 

Oh, and one other thing -- first quarter net revenue came in at $27 million, down 75% year over year. 

UPDATED: On Monday, May 20, Chicken Soup rendered its 10-K to the SEC, revealing a net loss or the quarter of $48.7 million vs. $55.7 million in the first quarter of 2023.

The NT-10Q  followed an April 1 NT-10K filing, in which Chicken Soup initially demurred on its its Q4/full-2023 earnings, stating that it had too much "turnover" in its accounting department to assemble an earnings report.

Chicken Soup ran into trouble following its 2022 purchase of Redbox, from which plans to parlay the DVD-rental kiosk empire into a robust AVOD business never worked out. (CSSE investors can partly thank the ad-supported streaming gold rush, and the resulting inventory glut, for that result. Sharply increased interest rates on that debt didn't help, either.)

With Chicken Soup's stock price holding stubbornly steady at 33 cents per share through May, the short sellers will undoubtedly be pleased we once again wrote about the company's troubles. 

Tools we may be here. But in business trade journalism, a 75% quarterly revenue drop is a 75% quarterly revenue drop. 

Chicken Soup or the Soul Entertainment revealed in an 8-K filing to the SEC Friday that has secured time and financing from its primary lenders in hopes of avoiding bankruptcy. 

The struggling corporate owner of the Redbox DVD rental kiosk business has secured $175 million in working capital, with $75 million being turned right back around to pay off its substantial debt. 

The remaining proceeds will help Chicken Soup keep its operations going -- and settle some court beefs with its burgeoning ranks of angry vendors and programming partners -- with its lenders extending the forbearance period on its loans to September 30. 

Also read: Chicken Soup Reports $637 Million Loss for 2023, Preps Investors for Bankruptcy

As part of the deal with its primary lenders, Chicken Soup also made changes to its board of directors, adding two independent directors with expertise in restructuring.

In its belated April 29 10-K filing, Cos Cob, Connecticut-based Chicken Soup reported a net loss of $636.6 million for 2023 versus $111.2 million in 2022. The company said that without the ability to somehow generate additional financing, it would "likely require us to diminish or halt operations and seek protection under applicable bankruptcy laws.”

Impacted heavily by the disruption caused to the theatrical content pipeline by COVID-19 and the Hollywood strikes, Redbox has shown some signs of recovery. The kiosk business saw a 66% increase in annual revenue in 2023 to $112.7 million. 

Chicken Soup For the Soul Entertainment rendered its delayed 2023 10-K filing to the Securities and Exchange Commission late last week, and the news out of the troubled media company got worse, not better. 

Reporting a net loss of $636.6 million for the year versus $111.2 million in 2022, the Cos Cob, Connecticut-based Chicken Soup said that without the ability to somehow generate additional financing, it “will likely require us to diminish or halt operations and seek protection under applicable bankruptcy laws.”

The dour SEC filing came after Chicken Soup received a delisting notification from the Nasdaq earlier this month. 

“Our relatively recent acquisitions of Redbox, 1091 Pictures, Crackle, and the assets of Sonar, required time-consuming and costly integration efforts,” the company said in its 10-K filing. “To date, these efforts have not been successful as we have not realized the anticipated benefits of such acquisitions and our operations have been adversely effected. We believe in the value of these assets but would require additional capital resources to fully realize their value, and we may not be able to secure such capital resources on commercially reasonable terms or at all.”

Business for Chicken Soup’s 40,000 DVD rental kiosk locations across the U.S. actually picked up last year, with the theatrical movie pipeline recovering a bit following the paralysis of the COVID-19 pandemic. The kiosk business saw a 66% increase in annual revenue to $112.7 million. 

But the other shoe dropped with Chicken Soup's Crackle- and Redbox-branded streaming businesses, sales for which declined 28% to $104 million. Chicken Soup said its financial crisis has kept it from programming its streaming channels in such a way that would increase audience usage, and subscription and advertising revenue along with it. 

Meanwhile, the lawsuits are piling up from unpaid vendors and programming partners, one of which told Next TV recently that he'd settled a Chicken Soup debt owed to his company for pennies on the dollar. The latest suit to emerge in the press, as detailed by the Penske showbiz trades on Monday, is from a consultant who helped Chicken Soup manage its $370 million acquisition of Redbox in 2022.

However, as a Chicken Soup rep pointed out to us, the 10-K outlines a "mutual forbearance agreement" it proposed it its primary lender that could improve the company's financial position. 

According to page 40 of the 10-K, "The proposed transactions include a $50 million sublicense and a $125 million agreement with a third party comprised of a $65 million line of credit and a $60 million equipment lease to Redbox secured by assets owned by Redbox." 

Chicken Soup for the Soul Entertainment was trading at 15 cents a share as of late-day trading Tuesday. 

Chicken Soup For the Soul Entertainment last week received a notice of “self-determination” from the Nasdaq stock exchange informing the troubled company that it's being delisted, according to an 8-K filing made to the SEC. 

Chicken Soup's stock price dropped below $1 a share back in August. With its stock relegated to junk bond status for 30 consecutive days, the company was notified by Nasdaq in September that it had 180 days to return to compliance, or it would face delisting. 

As of Monday, Chicken Soup was trading at just 15 cents a share. It hasn't been valued at more than $1 per share since August 14.  

Asked for comment, a Chicken Soup rep referred Next TV to this passage in the company's 8-K filing:

"The Company may appeal the Staff Determination by filing a hearing request with Nasdaq on or before April 1, 2024, pursuant to the procedures set forth in the Nasdaq Listing Rules 5800 Series."

Back in December, Chicken Soup confessed in a 10-Q filing that there was “substantial doubt" that it could “continue as a going concern.”

For investors, that Q3 filing contained little but bad news: Net losses swelled to $433.4 million vs. just $20.1 million a year prior. The increase was mostly the result of a one-time impairment charge related to Chicken Soup's May 2022 purchase of Redbox, during which Chicken Soup assumed $325 million in debt. 

Chicken Soup hasn't yet filed a 10-Q for Q4. 

The company, which operates Crackle and a number of other streaming video ventures, took on that $325 million in debt in May 2022 when it acquired DVD rental kiosk giant Redbox, and that move hasn't worked out well at all. 

As detailed by Janko Roettgers in his newsletter Lowpass last month, Redbox has shuttered around 8,000 kiosks recently, about a quarter of its base, and Chicken Soup is too cash-crunched to secure discs for the machines. 

Redbox has been sued recently by a number of unpaid content providers, including NBCUniversal, which claims it hasn't been paid DVD royalties since June 2022. 

Redbox is also being sued by retailers that feature its kiosks, including CVS, which claims it's owed $424,000 by the company. 

On Monday, Business Insider wrote what amounts to a long-form obituary for Chicken Soup, with writer Amanda Chicago Lewis recounting her early experiences with the seminal Chicken Soup For the Soul self-help book enterprise. Lewis walks readers through current CEO William Rouhana's takeover and expansion of the company, and all the way to where a Canadian day trader identified as “Kevin” used Reddit to hype Redbox stock into a mind of miniature GameStop phenomenon.

Crackle Connex, Chicken Soup for the Soul Entertainment’s ad-sales platform, said that Infillion has agreed to a multimillion-dollar upfront buy across inventory on Chicken Soup’s Redbox, Crackle and Chicken Soup for the Soul streaming networks..

Infillion’s TruX creates ad formats that enable consumers to seek fewer commercials if they interact with a brand for 30 seconds.

“This upfront purchase continues our practice of investing in top-tier, premium publisher relationships,“ Infillion’s Mick Danahy said. “Crackle Connex’s long-form streaming content draws the kind of high-quality attention advertisers crave, and is a great match for Infillion's unique ad products. With Infillion’s ad model that guarantees attention through interactivity, brands can be assured their budgets are getting the maximum return on investment. We’re continuing to look for partnerships like this as upfront season kicks off.”

According to research from Kantar, interactive video ads perform twice as effectively as ads without interactivity in driving brand consideration.

“We are very viewer-focused at Crackle Connex and believe that when we super-serve the audience, we better serve our advertising partners,” Crackle Connex president of ad sales Darren Olive said. “By enabling the TrueX collapsible ad unit within our premium movies and TV shows across our networks, we allow the brand to be the star and provide a better viewing experience. It’s truly a win-win.” 

With its stock trading at 21 cents a share back on Dec. 22, down from a high of $41.39 reached in June 2021, Chicken Soup for the Soul quietly expressed in a very late third-quarter 10-Q filing to the SEC "substantial doubt" as to whether it can "continue as a going concern."  

The filing -- and the small digital entertainment company's associated pessimism -- came after the Nasdaq issued a delisting warning to Chicken Soup for missing its November 10-Q filing deadline. 

For investors, that Q3 filing contained little but bad news: Net losses swelled to $433.4 million vs. just $20.1 million a year prior. The increase was mostly the result of a one-time impairment charge related to Chicken Soup's May 2022 purchase of Redbox, during which Chicken Soup assumed $325 million in debt. 

Excluding the impairment charge, the company reported an earnings before interest, taxes, depreciation and amortization (EBITDA) loss of around $7 million in Q3 vs. an EBITDA gain of about $9 million in the third quarter of 2022. 

Total debt rose to $890.1 million during the third quarter, and the company's total asset value dropped 46% to $481.3 million. 

Cash on hand had declined to $4.1 million vs. $18.7 million at the end of September 2022. Revenue was down 9.2% in the third quarter to $65.7 million. And despite a pledge to contain costs made back in August, operating expenses rose nearly 10% to $65.9 million. 

Also read: Chicken Soup for the Soul Forms Sports Joint Venture With Fuel TV

Also in December, several  indie producers stepped forward with legal complaints regarding alleged failed payments from Chicken Soup. Next TV confirmed that least one of those lawsuits ended in a settlement agreement.

Chicken Soup had no comment when we reached out to them by phone and email Tuesday morning. (It's stock was trading at around 20 cents a share at the time, up from a bottoming out of 16 cents a share last week.)

However, in its third-quarter 10-Q filing, the company did tie the issue of nonpayments to content makers to a delayed credit facility.

"While the Company was offered a loan facility by a reputable private lending fund on terms compliant with the credit facility, the new loan facility was not approved by the Company’s primary lender," the document explains. "Thus, as the flow of theatrical releases began to increase following Covid, the Company’s inability to secure the accounts receivable loan hampered its ability to pay for and secure new content, which began to strain relationships with the Company’s creditors, including content providers. 

"As a result, the Company was unable to pay for all the movies that were offered to it by its providers, and as a result operating results failed to meet management’s expectations, particularly in Redbox’s kiosk rentals, resulting in insufficient cash flows and a significant working capital deficit hampering our ability to operate the business efficiently," Chicken Soup's SEC filing further explained. "The combination of these factors has resulted in asserted defaults and/or contractual terminations with critical content and service providers, impacting our ability to procure and monetize content efficiently across our distribution platforms."

This last part perhaps best expresses management's pessimism in regard to avoiding bankruptcy: "Due to the on-going impact of the above factors on our current and future results of operations, cash flows and financial condition, there is substantial doubt as to the ability of the Company to continue as a going concern."

Chicken Soup fatefully agreed to pay $50 million in stock and take on $325 million in debt when it acquired struggling DVD-rental kiosk operator Redbox in May 2022. 

Also read: Chicken Soup CEO Bill Rouhana on Redbox: ‘That's a very strong cash-flowing business when it's normal'

There was cause for concern last summer, when Chicken Soup reported doubled net losses for the second quarter of $43.7 million. At the time, company chairman and CEO William J. Rouhana Jr. announced the formation of a strategic review board committee whose intent was to raise $30 million in free cash flow. 

Rouhana acquired inspirational self-help book brand Chicken Soup for the Soul in 2008, adding to it indie film and TV distribution company Screen Media Entertainment and ad-supported streamer Popcornflix in 2017. In 2019, Rouhana and Chicken Soup purchased streaming company Crackle from Sony Pictures Television. 

In May 2022, Rouhana explained to Next TV contributor David Bloom his rational for acquiring bankrupt Redbox:

“They built their transactional video business, their PVOD business, their FAST TV business with 130 FAST channels,” he said. “That's a perfect fit for what we do with our multiple AVOD networks —  Crackle, Chicken Soup for the Soul, PopcornFlix — with our content library with just over 8,000 movies and TV shows that we own and 24,000 television shows and14,000 films that we have AVOD rights to. (We have) a huge sales force that sells AVOD ads, they don't have what we do. We were going to spend tens of millions on the tech they've already developed, they were going to spend tens of millions on the tech we developed.”

Chicken Soup for the Soul Entertainment said it formed a joint venture with Fuel TV to create Fuel TV branded subscription video-on-demand and free ad-supported streaming TV channels. 

Chicken Soup, which lost $20 million in the third quarter, plans to expand its joint-venture efforts in 2024. The company announced cost-cutting moves in August and set up a board committee to review its strategy. 

Chicken Soup said the business deals will drive additional revenues for existing properties it owns and operates utilizing the expertise of third parties. 

Some of Chicken Soup’s current channels are being renamed to create Fuel TV Surf, while LiftTicket will become Fuel TV Snow. 

Also Read: Indie Producer Lawsuits, Complaints Dog Cash-Strapped Chicken Soup for the Soul Entertainment

The companies are also launching the new channels Fuel TV Skate and Fuel TV Bike.

“Fuel TV is the gold standard for action-sports content, and they are the perfect counterparty for us to work with on this joint venture,” Elana Sofko, chief strategy officer of Chicken Soup for the Soul Entertainment, said. “Their expertise, combined with our robust content and advertising teams, will make this a powerful offering.”

Under the terms of the deal, FuelTV will run and operate the channels. Chicken Soup for the Soul Entertainment divisions Screen Media Ventures will contribute 1091’s library of action sports titles, and Crackle Connex will sell ad inventory.

“We are delighted to join this venture, uniting two of the biggest action sports libraries, and both companies’ prowess in the media industry will allow us to consolidate the leadership in the action sports space,” said Fernando Figueiredo, CEO of Fuel TV. “Moreover, it will give Surf, Skate, Snow and Bike a standalone home for those core viewers that binge their sport for hours. For 20 years, Fuel TV action-sports channel has gathered all these sports and will keep doing it by being the home of hundreds of hours of live events from across the globe.”

As big conglomerates looked to shed assets over the last several years, and small entertainment outfits held fire sales, distribution company,Chicken Soup For the Soul (CSSE) kept on strategically expanding. 

But the Greenwich, Conn. company seems to have hit a rough patch. 

The company reported a net loss of $423.7 million in the second quarter, and its stock is currently hovering at about a third of its 12-month high. 

Having already delayed reporting its third-quarter earnings, company founder and CEO William Rouhana conceded to Variety that the company is having cash flow issues. This was after the Penske Showbiz trade reported that numerous indie producers have recently sued CSSE film label 1091 Pictures over non-payments. 

“The company has been working to address cash flow issues and to pay our content owners,” Rouhana told the trade. “Unfortunately, this has taken much longer than anyone anticipated. We are working to address these filmmakers and their concerns.”

Variety's story includes interviews with numerous frustrated producers, who are not only seeking to get paid, but are also trying to get distribution rights back to their films from CSSE.

“We were on a carefully laid path to make our money back for our investors who trusted us, only to have a company like Chicken Soup come in, buy out our distributor and then refuse to pay us what we are contractually owed, all for what?” Tom Huang, who sold North American distribution rights to CSSE for his film Dealing With Dad, told Variety. “People like this really destroy my faith in humanity. It’s so hard.”

Update: Variety apparently obtained facts about 1091's issue with Chicken Soup from the Steinway Piano Blog, which published details about the conflict in early December. 

This isn't the first time Next TV has heard payment-issue gripes and other complaints against CSSE from indie producers.

Last year, for instance, New York producer Robert Rose, who produces, stars in and distributes syndicated half-hour weekly lifestyle series Raw Travel, complained to us that he was given wildly inflated revenue projections by CSSE when he agreed to distribute his show on the company’s ad-supported streaming platform, Crackle, back in 2021. 

Rose also said that his shows were buried within the platform, and that commercial pods were haphazardly placed — sometimes in the middle of dialogue — rendering the content “unwatchable.” 

Rose added that out of “high” revenue projections of $71,000 and “low” forecasts of $42,600 provided by CSSE's digital acquisitions unit, Screen Media Ventures, to feature Raw Travel on CSSE’s ad-supported VOD service, Rose recouped only $228. 

Emails by Next TV to CSSE reps late Wednesday weren't immediately responded to. 

Either way, it’s been a wild ride for Chicken Soup, a once sleepy self-help brand that was taken public by Rouhana in 2017. 

Then the shopping started:

• In December 2020, CSSE paid $315 million to acquire AVOD unit Crackle.
• In March 2022, CSSE paid $15.6 million for indie film label 1091 Pictures. 
• In August 2022, CSSE assumed around $325 million in debt to acquire troubled Redbox Entertainment. 

Back in August, when it reported its Q2 earnings, CSSE pledged to cut operating expenses and hold off on acquisitions to pay down debt. 

The company even set up a committee to explore a potential sale.

“There have been some inquiries that have come our way that could be pretty serious, which is why we are setting up the committee,” Rouhana told Media Play News.

Chicken Soup for the Soul Entertainment said it will distribute Channel 1, a streaming news network that uses artificial intelligence to produce its reports.

Chicken Soup will also license Channel 1’s AI tech to localize CSSE’s library of over 10,000 movies and TV titles into the appropriate languages.

Channel 1 will first be available as a free ad-supported streaming television (FAST) channel in February and Chicken Soup will use is relationships to get the new network on platforms including Roku, Amazon Fire TV, Android TV and Samsung, giving it access to millions of viewers.

Channel 1 plans to launch an app later in 2024 that will provide more personalized news.

“Channel 1 is truly the future of streaming news, and we are delighted to be working with them on distribution for their service,” said William J. Rouhana, Jr., chairman and CEO of Chicken Soup for the Soul Entertainment. “Their AI is some of the most sophisticated and advanced technology we’ve seen. Their localization technology will unlock significant value in our deep catalog of over 10,000 movies and TV series, enabling us to easily translate them into any language at virtually no additional cost.”

Financial terms of the deal were not disclosed.

“Chicken Soup for the Soul Entertainment’s distribution footprint is one of the largest in streaming, which will provide us with immediate scale,” Scott Zabielski, chief content officer for Channel 1, said. “Our AI technology will also give them an easy, inexpensive way to unlock massive value in their content library by localizing content into any language. We’re delighted to be working with them on this and other projects in the future.”

Citing difficulties in the economy and streaming business, Chicken Soup for the Soul Entertainment said it is taking steps to generate short-term cash flow savings and has formed a strategic review board committee.

On the company’s earnings call Monday, CEO William Rouhana said the company has had incoming requests from potential financial and strategic partners.

The board committee will “evaluate these opportunities and will pursue transactions that check all the boxes in creating value for our shareholders and this is clearly not reflected in our stock price,” Rouhana said.

In the second quarter, Chicken Soup for the Soul had a net loss of $43.7 million, or $1.50 a share. That compares to a $20.8 million loss, or $1.39 a share, a year ago.

Net revenue doubled to $79.9 million from $37.6 million a year ago.

The company's stock closed Monday at $1.01 a share, near its low for the year, then dropped in after-hours trading to 79 cents a share.

Rouhana said that the company has taken numerous steps to create short-term cash flow savings of as much as $30 million.

“We believe we have to be very careful and make decisions that underscore our commitment to paying down debt and generating free cash flow. In other words, we need to adapt to the current market conditions,” he said. “We recently conducted a review of all our operations to identify ways to drive greater cash flow and we've already begun implementing those changes.”

The changes include reworking some agreements to produce original programing that wouldn't produce short-term cash flow; scaling its FAST platform and service businesses including its Crackle Connex ad rep business and putting its content sales business into overdrive.

Rouhana noted as the strikes by the writers and actors unions continue, demand for content is increasing. “We have a large catalog. We can monetize that in the event of a prolonged slowdown. And in other words, the longer the strike continues, the more valuable the library becomes,” he said.

The company has identified certain assets that are non-core operations and that can be monetized. It is also looking to cut general and administrative costs and has reduced headcount by 50 people since January.

"This is an entire industry which is feeling some pain, but despite these changes, we are fully committed to growing our business and streamlining it in the most cost effective way and we're capable of doing that,” Rouhana said.

Philo said it is adding a group of free ad-supported streaming TV channels to its programming lineup, effective Wednesday.

The channels include InFast, InTrouble and InWonder from Insight TV, Chicken Soup for the Soul from Chicken Soup for the Soul Entertainment and music video channels from Vevo including Vevo ’80s, Vevo ’90s, Vevo Country, Vevo Hip-Hop and Vevo Pop.

“Philo offers a great mix of premium and free live-streaming television channels which we’re pleased to have Chicken Soup for the Soul become part of,” Philippe Guelton, chief revenue officer of Chicken Soup for the Soul Entertainment, said. “Our channel has so much great content that will entertain viewers for hours, including our branded content series like At Home With Genevieve and Wedding Talk. In addition, now through the end of the year, we’re streaming romantic holiday movies — all for free.”

The Chicken Soup for the Soul FAST channel is a lifestyle destination for women featuring inspiring content, hit movies, TV series, and Chicken Soup for the Soul Entertainment's original programming. Viewers will find stories that inspire, entertain and change the world, one story at a time. Currently streaming on the channel are holiday movies that include Meeting Mr. Christmas, A Great North Christmas, 2nd Chance for Christmas, and An Evergreen Christmas.

InFast is a lifestyle channel, InTrouble features action and sports and InWonder focuses on science and technology.

Chicken Soup for the Soul Entertainment made a deal to put content from TikTok on its network of 3,000 Redbox kiosk video screens. 

Out-of-home viewers will be able to view the TikTok content along with promotional video for new movies available from Redbox and ads served through Chicken Soup’s Crackle Connex ad platform.

“TikTok is the go-to destination for short-form video consumption by over a billion people globally,” said Philippe Guelton, chief revenue officer of Crackle Connex. “This new partnership provides advertisers a unique opportunity to reach new audiences and drive engagement. Our Redbox kiosks are in high-traffic locations where millions of people frequently shop, such as grocery stores or value retailers. We look forward to working with TikTok on expanding this partnership as our DOOH network expands.”

Financial terms were not disclosed.

"People come to TikTok to experience the entertainment, joy, and creativity of our community and we are excited to expand that experience to Redbox kiosks," said Dan Page, Head of Global Distribution, New Screens at TikTok. "This partnership allows us to bring together the power of our exceptional content with the high-visibility of Redbox kiosk locations, creating an effective and fresh approach to advertising."

A group of streamers not affiliated with the biggest media companies have formed the Independent Streaming Alliance, which will engage with platforms and consumers.

Founding members of the ISA include Allen Media Group, Chicken Soup for the Soul Entertainment, Cineverse, Future Today , kweliTV, Revry, E.W. Scripps, Tastemade, TMB and Vevo.

The alliance will also highlight minority-owned businesses and advocate for diverse programming and a more equitable playing field across the industry.

“The formation of the ISA is long overdue,” Philippe Guelton, chief revenue officer at Chicken Soup for the Soul Entertainment, said. “We are joining forces to promote the value of independent streamers, and to work hand-in-hand with platforms, advertisers and regulatory bodies to ensure that we have a healthy ecosystem that benefits everyone, not just the few.”

The ISA has formed working groups focused on key business areas of measurement, distribution and advertising demand.

The ISA has selected iSpot.TV and its audience and ad measurement provider to quantify the unique reach of the alliance’s members. The group will also push to use iSpot as a possible currency for advertising sales.

The distribution group will work with platforms on growing the availability of audiences of independent streamers and the demand group will work with SSPs, DSPs, brands and agencies to ensure members’ ad inventory can be accessed by buyers directly or via programmatic technology.

“The ISA is an opportunity to level up our ecosystem by defining standards and best practices that will benefit consumers, advertisers, and programmers alike,” said Evan Bregman, General Manager, Streaming at Tastemade. “Tastemade is proud to be on the leading edge of building a sustainable streaming industry.”

Chicken Soup for the Soul Entertainment said it will launch a reward program that lets viewers earn coins by watching the company’s streaming services Redbox, Crackle and Chicken Soup for the Soup.

The coins can be used to bid on prizes and buy products.

The program is being executed through TaTaTu, a platform that uses TTU digital coins to reward viewers.

“The addition of TaTaTu to our streaming services will provide a fun and rewarding experience for millions of our consumers. In an era where others are raising the prices of streaming services, we are finding ways to reward viewers for watching our great content,” said Chicken Soup CEO William J. Rouhana Jr. "This collaboration is also an opportunity to enhance the entertainment experience and drive engagement on the TaTaTu platform."

Chicken Soup earlier this month made a deal with TaTaTu to launch ad-supported streaming services in international markets using movies and TV series from Chicken Soup.

"We are thrilled to work with Chicken Soup for the Soul Entertainment, a leading provider of high-quality entertainment content," said Andrea Iervolino, founder and CEO of TaTaTu. "This collaboration represents a major step forward for TaTaTu as we continue to build a strong ecosystem of partners that share our vision for the future of entertainment."

Crackle Connex, the advertising sales division of Chicken Soup for the Soul, said at its NewFront presentation Wednesday that  it will be launching new branded content series and forming new data and technology partnerships to enable advertisers to connect with audiences.

The new series include At Home with Genevieve Gorder and Just for Kicks, which follows collectors who search out the hottest new sneaker drops.

Crackle Connex also has the second season of Inside the Black Box, sponsored by The General Insurance Co. and co-produced with Publicis Media’s APX Content Ventures, and a new season of Going for Broke from executive producer Ashton Kutcher.

Later this year, Crackle Connex said that working through Amazon Publisher Director, it will be able to offer video ads that enable viewers to purchase items using their remote control.

The company also has a new relationship with Upwave that enables clients to measure brand lift for its branded content programming.

Crackle Connex continues to offer brands 360 data and measurement capabilities with partners such as Experian, InMarket, iSpot.tv, LiveRamp, Transunion and Nielsen Catalina.

“When we formed Crackle Connex only a month ago, we designed it so brands could seamlessly integrate their campaigns across AVOD, FAST, kiosks, digital out-of-home and through branded content,” said Philippe Guelton, chief revenue officer of Crackle Connex. “The response has been tremendous as we provide one of the most unique entry points for advertisers. We will have even more announcements in the coming weeks.”

Jonathan Katz, who joined Chicken Soup for the Soul Entertainment as president in August 2022, is stepping down from that position, the company said.

Katz joined Chicken Soup as it was expanding by buying Redbox Entertainment. Galen Smith, who had been CEO of Redbox, was made executive vice chairman of Chicken Soup, but left the company in December. 

A long-time Turner executive, Katz had previously launched Katz Networks–a pioneering group of digital broadcast networks–and sold the company to E.W. Scripps Co. in 2017.

According to a filing with the Securities and Exchange Commission Friday, Katz will serve as a senior advisor to the company effective Saturday, April 22  As a senior advisor, Katz is expected to work with management and other personnel to assure a smooth transition.

In the fourth quarter, Chicken Soup for the Soul Entertainment reported a $56.3 million loss, up from a $22.4 million loss in the fourth quarter of 2021. Revenue tripled thanks to the Redbox acquisition.

Chicken Soup also planned to raise $10.8 million to get additional working capital by selling Class A equity.

In Friday trading, Chicken Soup for the Soul stock plunged 7% to $1.95 a share. The shares fell another 4% in after-hours trading.

Chicken Soup For the Soul Entertainment, which acquired Redbox under fire-sale circumstances last summer for a mere $375 million in stock and debt assumption, now wants to buy Netflix's sunsetting DVD rental business, too. 

Netflix announced on Tuesday that it will soon shutter the physical media operation that first put it into business 25 years ago. That came a day after Chicken Soup announced from NAB in Las Vegas that it will add 1,500 Redbox DVD rental kiosks in Dollar General Stores nationwide over the next few years, with disc rentals at kiosk locations perking up. 

Chicken Soup CEO Bill Rouhana told the Penske Showbiz Trades that he has already been rebuffed "three or four times" by Netflix's "corporate development people," prior to Netflix's Tuesday announcement. 

“I’d like to buy it,” Rouhana told the trade. “I wish Netflix would sell me that business instead of shutting it down. ... This could be a great boon to us because now there are a whole bunch of people who are going to look for a new place to get their DVDs, and we’re close to 90% of them based on where our kiosks are located." 

The Penske Media Group trade reached out to Netflix, which said it still intends to end its DVD.com business in September. No plans have been announced as to what Netflix will do with its warehouses full of DVD and Blu-ray titles. 

Before the Dollar General infusion, Chicken Soup said its Redbox kiosk count had dwindled to around 32,000 -- down from a peak of 43,500 in 2012. 

With 39 theatrical titles entering the rental pipeline this year, Chicken Soup believes the physical media business, particularly in regions in which Dollar General is proliferate, is poised for a resurgence. 

“We believe in it, and we believe it’s going to be around for a while. Like most legacy things, it’s a lot harder to kill them than people say, I believe,” Rouhana noted.

Notably, the kiosk rental business, almost all of which belongs to Redbox, was in rapid decline well before the pandemic disrupted the theatrical pipeline.  

The Digital Entertainment Group, which tracks the physical rental and sale business based on data provided directly by studio suppliers, said the DVD kiosk business generated $884.59 million in pre-pandemic 2019, down 19.44% from 2018.

DEG stopped breaking out kiosk rentals as an individual category several years ago in its public reports. However, the research company said overall physical disc rentals were down year over year by 16.65% to $502.35 million last year.  

Netflix's DVD unit has steadily declined in recent years, with revenue falling to $146 million in 2022 vs. $183 million in 2021 and $239 million in 2020. 

In addition to renting discs at its kiosks, Chicken Soup generates outdoor advertising revenue at its Redbox locations. It also mines data from 42 million Redbox customer signups to aid its AVOD, FAST and TVOD streaming business -- a factor Netflix might be considering as it demurs on Rouhana's overtures. 

The collapse of Redbox was fast and stunning, with the company's fire sale to Chicken Soup for the Soul Entertainment in May 2022 coming just six months after its SPAC-fueled IPO. 

With the pandemic paralyzing the theatrical pipeline, there were few, if any, anticipated DVD and Blu-ray titles to rent at Redbox kiosks. 

With 39 titles expected to enter the physical rental pipeline this year, the Redbox kiosk business is growing again under Chicken Soup, which announced Monday the addition of 1,500 new stations positioned nationally at Dollar General Stores over the next two years. 

By the time the rollout is completed, Dollar General will host around 5,000 Redbox kiosks. 

The Redbox kiosks business peaked in 2012 with 43,500 locations. Chicken Soup said there are currently around 32,000 outlets. 

“Dollar General has been an incredibly important strategic partner for Redbox, as we both serve value-conscious customers,” said Chicken Soup CEO William Rouhana, in a statement. “As the economy continues to challenge and impact consumers, expanding Redbox’s kiosks nationwide with Dollar General will provide millions of Americans additional access to more affordable entertainment.”  

This year's slate will include a slew of major tentpole franchises, including Spider-Man: Across the Spider-Verse, Guardians of the Galaxy Vol.3, Fast X, Mission: Impossible – Dead Reckoning Part 1, Transformers: Rise of the Beasts, Indiana Jones and the Dial of Destiny.

Chicken Soup For the Soul Entertainment has stocked up on yet more FAST channels, adding programming from Fremantle, Revry and Love Stories TV to its Redbox Free Live TV service. 

The company says it will soon have more than 180 free ad-supported streaming channels serving a monthly active user base of 60 million across combined FAST platforms. 

“Our FAST streaming platform gives cost-conscious consumers access to thousands of hours of free content available on over 160 touchpoints,” said Adam Mosan, chief digital officer for Chicken Soup for the Soul Entertainment. “These additional channels will offer entertaining programming that our viewers will enjoy for hours, and we are working on adding even more in the coming year.” 

Here are the channels being added. (Loglines comes from Chicken Soup.)

FREMANTLE

* The Jamie Oliver Channel – Over 300 hours of renowned chef Jamie Oliver’s programming that includes chop n’chat, travel, and seasonal specials

* Supermarket Sweep – Three teams of two battle it out using their grocery shopping skills and knowledge of merchandise to win cash prizes

* Sleuth – Over 1,800 hours of the best of UK crime and detective series – classic and contemporary that include Lovejoy, The Bill, and The Sweeney

* Quip – The Best of British comedy, from laugh-out-loud sitcoms to sketch show series. Titles include The IT Crowd, Trollied, and People Just Do Nothing

* Places & Spaces – Over 1,500 hours of the best architecture, interiors, and home-related programming including Grand Designs, Escape to the Country, and How Clean is Your House?

* Cook Chop Chat – Combining food, cooking, lifestyle, and travel, the channel features over 500 hours of the world’s favorite celebrity chefs and cooks, including The Hairy Bikers, Donal Skehan, and Lorraine Pascale

REVRY

* Revry – Revry is the only LGBTQ-first media network dedicated to the authentic representation of the queer community. Revry’s free ad-supported TV service and on-demand LGBTQ+ movies, series, news, and music, inspire the exploration of original and classic queer programming for audiences worldwide

LOVE STORIES TV

* Love Stories TV – Love Stories TV delivers heartwarming content, superstar experts and incredible real weddings that inspire a passionate audience. For anyone seeking wedding inspiration and uplifting content, Love Stories TV is the place to be

With new hit movies Avatar: The Way of Water and Creed III available to home viewers, Chicken Soup for the Soul Entertainment said it had its biggest week ever for transactional video-on-demand revenue.

The company’s Redbox kiosks also experienced a 102% increase in rentals for a rolling three-month period, with people checking out titles including John Wick: Chapter 4, Guardians of the Galaxy Volume 3, Fast X and The Little Mermaid.

Crackle, Redbox and Chicken Soup for the Soul, the company’s streaming platforms, also saw growth, with monthly active uses climbing 50% to 60 million.

Also Read: Chicken Soup for the Soul Launches Crackle Connex Ad-Sales Platform

“We’ve had a record-breaking start to the year driven by what we’ve long expected – big movies are beginning to come back,” CEO William Rouhana Jr. said. “ As the year progresses, we will see even more movie titles come into the pipeline. More movies mean more rentals and more revenue.

In the fourth quarter of 2022, Chicken Soup for the Soul reported a loss of $56.3 million Revenue tripled to $113.6 million, thanks in part to the acquisition of Redbox. The company last month said it was selling $10.8 million in common equity in order to raise working capital.

Rouhana reiterated the company’s guidance for the year of $500 million of revenue and $100 million to $150 million in adjusted earnings before interest, taxes, depreciation and amortization.

Chicken Soup for the Soul Entertainment said it launched Crackle Connex, a new ad-sales platform.

Crackle Connex gives buyers access to the company’s ad-supported video on demand and free ad-supported streaming television assets, as well as 10,000 Redbox digital out-of-home screens and more than 20 third-party ad supply partners, reaching 80 million monthly active users.

The new unit will be overseen by Chicken Soup chief revenue officer Philippe Guelton and president of advertising sales Darren Olive.

“With Crackle Connex, Chicken Soup for the Soul Entertainment has created a leading advertising platform that simplifies the buying process of video advertising across both in-home and out-of-home screens,” Guelton said. “We have some big news to share in the coming weeks and at our NewFront presentation on May 3.”

The new unit also includes the Crackle Connex Branded Content Studio, which produces original and brand-supported shows including Inside the Black Box, produced with Publicis’s APX Ventures, and Going for Broke, executive produced by Ashton Kutcher and hosted by Chegg CEO Dan Rosensweig.

Chicken Soup for the Soul Entertainment, which expanded its operations by acquiring Redbox last May, reported a wider fourth-quarter loss despite a big increase in revenue.

The company’s net loss in the quarter was $56.3 million, or $2.70 a share, compared to a loss of $22.4 million, or $1.38 a share, a year ago. Adjusted earnings before interest, taxes, depreciation and amortization rose to $14.7 million from $9.3 million a year ago.

Revenue tripled to $113.6 million thanks to the Redbox acquisition.

“Our fiscal year was one of significant growth for Chicken Soup for the Soul Entertainment — especially with the acquisition of Redbox, which immediately scaled our operations,” CEO William Rouhana Jr. said. 

Also Read: Former Redbox Chief Galen Smith Resigns From Chicken Soup for the Soul

“The company is well positioned for the coming year to take full advantage of the upcoming theatrical slate and the continued increase in viewers of free ad-supported services across our FAST and AVOD platforms,“ Rouhana said. “Over 40 major film releases are expected this year — the most since 2019 — with at least one new movie available every week in our kiosks and digitally. This increase in movies means more rentals, more revenue, and more cash flow for the company. We plan to use this cash flow to scale our operations and help pay down debt.”

The company is in the process of raising additional working capital through a $10.8 million Class-A common equity offering. Chicken Soup for the Soul Holdings has committed to making equity investments in the company in lieu of certain cash fees under current management and license agreements. ■

Allen Media Group has launched three streaming channels on Chicken Soup for the Soul Entertainment’s Redbox Live TV free streaming service.

The Weather Channel en Español, Pattern and theGrio Television Network have joined the lineup on the Redbox Free live app, the companies said.

“We’re excited to expand our partnership with Chicken Soup for the Soul Entertainment,” Byron Allen, founder/chairman/CEO of Allen Media Group, said. “The addition of our FAST channels to the Redbox Live TV lineup enables AMG to expand the reach of life-saving weather information through The Weather Channel en Español, as well as climate news featured on Pattrn, and storytelling featured on theGrio Television Network.”

Last year, Chicken Soup channels including Crackle, Crackle Classics and Popcornflix were added to Allen’s Local Now platform.

“Our mission is to provide value-conscious consumers with ever-growing options that entertain and inform,” Chicken Soup for the Soul Entertainment chief content officer Phil Oppenheim said. “This new agreement with Allen Media Group continues to expand our Redbox connected-TV FAST platform with unique and diverse new channels for our customers.”

The Redbox Free Live streaming app is available on connected TVs and devices from manufacturers including Roku, Samsung, Vizio and LG. ■

Chicken Soup for the Soul Entertainment said it made a deal with KC Global Media that will grow its free, ad-supported streaming television (FAST) channel business in Asia.

“One of our areas of focus in 2023 is to grow the availability of our owned content globally — and monetize it in every way possible,” said Elana Sofko, chief strategy officer of Chicken Soup for the Soul Entertainment. “We always seek to work with prominent media companies already successful in the markets we are entering. KC Global Media is a company with deep relationships throughout Asia, and we know we can continue to scale our international business together.” 

The companies plan to launch additional FAST channels this year. The companies are also making more content available via ad-supported VOD. Content includes series, movies and factual titles including Lionel Messi: The Greatest, BTS: Global Takeover and Adele: Homecoming.

“As we head into 2023, one of our key strategic goals is to increase our volume and diversity of premium content in our current portfolio,” Andy Kaplan, co-founder and chairman of KC Global Media, said. “Chicken Soup for the Soul Entertainment is one of the largest content providers and this strategic partnership gives us an edge as we provide more value to our partners and affiliates in the region. This, in turn, will also enable us to reach out to new audiences and new territories and create more opportunities around the world as we continue to grow our business with our affiliates and streaming platforms.“ ■

Galen Smith, who became executive vice chairman of Chicken Soup for the Soul Entertainment when it bought Redbox Entertainment in August, is resigning from the company, effective January 2.

Smith had been CEO of Redbox, which was trying to move into streaming to supplement its retail kiosk business.

Smith’s responsibilities will be assumed by Chicken Soup for the Soul chairman and CEO William J. Rouhana Jr.

“Mr. Smith has helped lead our integration of Redbox since the acquisition and has ensured the establishment of a clear path forward to best serve our consumers,” Chicken Soup for the Soul said in a filing with the Securities and Exchange Commission Friday. “Through January 2, 2023, Mr. Smith will work closely with our management and personnel to ensure a smooth transition.”

Under Smith, Redbox went public through a special purpose acquisition company deal in October 2021.

The company ran into trouble during the pandemic, which disrupted the pipeline of new movies that fed its DVD kiosk business. Revenue generated by the nascent streaming operations couldn't offset the declines in consumers visiting kiosks for what was a dwindling supply of fresh theatrical films at the time. Redbox losses doubled to nearly $141 million in 2021. ■

Chicken Soup for the Soul Entertainment posted a loss in the third quarter as the acquisition of Redbox Entertainment helped push the company’s revenue higher.

The net loss was $20.1 million, or $1.13 a share, compared to a net loss of $14.5 million, or 1.04 a share, a year ago. Transaction expenses related to the acquisition of Redbox were partially responsible for the losses, the company said.

Adjusted earnings before interest, taxes, depreciation and amortization rose to $9.6 million from $5.6 million a year ago.

Revenue more than doubled, rising to $72.4 million from $29.1 million a year ago, before the Redbox acquisition.

“This has been the best financial quarter in our history, and our position in the free and low-cost streaming ecosystem is stronger than ever after completing the acquisition of Redbox during the quarter,” said CEO William J. Rouhana, Jr.  “We saw tremendous growth, with revenue increasing 149% and Adjusted EBITDA 97% year over year. Despite a slowing economy, I am optimistic about the days ahead as we continue to serve value-conscious consumers across kiosk, transactional and ad-supported video on demand services.”

Jason Meier was named CFO of Chicken Soup for the Soul Entertainment, effective November 15. Meier had served as the company’s chief accounting officer since September 2021. Chris Mitchell will continue as the CFO of the parent company, Chicken Soup for the Soul Holdings, and will remain a member of the board of directors of Chicken Soup for the Soul Entertainment. ■

Chicken Soup for the Soul Entertainment announced an expanded deal with Vizio, which will add buttons to its remote controls that will take viewers directly to the Redbox and Crackle ad-supported video-on-demand services.

The new remotes will be included with Vizio smart TVs sold in the second half of 2023.

“As one of the first to launch the Chicken Soup for the Soul app and Crackle FAST channels in our free streaming service, WatchFree Plus, we are pleased to offer new Vizio customers direct access to the Crackle and Redbox streaming services from the Vizio remote,” said Seta Goldstein, director of content & technology partnerships at Vizio . “Our expanded relationship with Chicken Soup for the Soul Entertainment makes it easy for Vizo users to discover Crackle and Redbox programming — at the touch of a button.”

Chicken Soup announced a similar deal bringing a Crackle button to remotes sold with Hisense sets. 

“We’re excited to expand our footprint with Vizo and allow customers instant access to our vast libraries across Redbox and Crackle,” said Adam Mosam, chief digital officer of Chicken Soup for the Soul Entertainment. “This comes at an optimal time as we grow our AVOD and FAST offering in the coming year.”  ■

Chicken Soup for the Soul Entertainment said its Redbox Free Live TV service has added eight new free ad-supported streaming TV (FAST) networks to its lineup.

From producer-distributor Banijay, Redbox is adding channels featuring the series Fear Factor, Deal or No Deal and The Biggest Loser.

The service is also adding Cowboy Way, True Crime Now, Paranormal Files, Snowy River and Wipeout Xtra channels.

Redbox Free Live TV now offers more than 150 free ad-supported channels. 

“We have been aggressively adding channels to our Redbox Free Live TV service and expect to accelerate that further in the coming months,” Adam Mosam, chief digital officer of Chicken Soup for the Soul Entertainment, said. “The addition of these addictive evergreen channels combined with hundreds of hours of newly added genre content adds tremendous value to our growing FAST offering.”  

The Redbox Free Live TV service can be accessed through the Redbox streaming app for free on Roku, Samsung TVs, LG TVs and Vizio TVs. ■

Chicken Soup for the Soul Entertainment said it made a deal with VIDAA USA to add a Crackle button to remote controls sold with Hisense smart TVs.

VIDAA USA, which manages the platform for Hisense, also agreed to add Chicken Soup for the Soul's free ad-supported streaming TV channels to the VIDAA platform in the coming weeks.

The deal provides more distribution for the Crackle Plus channels, and makes them easier for consumers to find the programming they offer.

Financial terms were not disclosed.

Also: Chicken Soup for the Soul Launches Video On Demand App on Vizio Sets

"Providing the best free content in the simplest way to consumers is our mission at VIDAA. Which is why the partnership with Crackle is a great addition to our already large lineup of free VOD content as well as FAST channels," VIDAA USA VP of content Nick Ruczaj said. "We've also made the content easy to discover in our platform’s search engine and will be placing the streaming channels right alongside the broadcast TV networks in the programming guide," he added.

Also: Tremor International Makes $25 Million Investment in Hisense’s VIDAA

The VIDAA Smart TV OS is a Linux-based smart TV operating system and is embedded in millions of smart TV brands including Hisense, Toshiba, Loewe and Supersonic.

"Hisense is known for its high-quality televisions, which are affordable to cost-conscious consumers," Adam Mosam, chief digital officer of Chicken Soup for the Soul Entertainment, said. "The addition of the Crackle app on the VIDAA TV operating system and the remote button will help bring a whole new audience to our service. We have a wide range of amazing content which I know their consumers will enjoy." ■

Chicken Soup for the Soul Entertainment said it named Phil Oppenheim chief content officer, a new post, effective November 1.

Oppenheim, formerly senior VP of program scheduling at Epix, will be in charge of content strategy for the company’s print and streaming brands, including Redbox and Crackle. 

He will report to Jonathan Katz, recently named president of Chicken Soup for the Soul Entertainment.

Also: Chicken Soup for the Soul Launches Video On Demand App on Vizio Sets

“Phil is a true unicorn. He’s an executive with wide-ranging experience across multiple streaming brands and business models, along with vast experience leading some of TV’s most successful linear networks,” Katz said. “Phil has helped grow audience and revenue at every point in his career and we’re incredibly lucky to have him as part of the team.”

Before Epix, Oppenheim had been with Lionsgate and Turner. ■

Crackle Plus said that it will launch an original series, Wedding Talk, on October 13 exclusively on its ad supported Chicken Soup for the Soul and Crackle streaming services.

Wedding Talk is hosted by Olympic gold medalist turned commentator Tara Lipinski, event planner José Rolón and wedding designer Jove Meyer, and each of its ten 30-minute episodes will highlight fabulous ceremonies, discuss what’s hot and what’s not, and show off dream dresses, all to inspire viewers approaching their own big days.

Also: Former Scripps Exec Jonathan Katz Named President of Chicken Soup for the Soul Entertainment

“Our viewers are going to fall in love with the romance and emotion of the spectacular weddings featured in Wedding Talk,” said Jeff Meier, head of programming for Crackle Plus, a division of Chicken Soup for the Soul Entertainment. “We know the world of weddings is an audience favorite, and we’re excited to introduce viewers to a series that lets them dive in and immerse themselves in these beautiful events with Wedding Talk.”

The series is executive produced by Jess Loren, Erick Geisler and Matt Hanna for production company To Whom It May Concern LLC, and executive produced by Michael Winter and David Ellender for Chicken Soup for the Soul Television Group and Rachel Silver of Love Stories TV.

“We wanted to approach the wedding space in a very untraditional way,” said Jess Loren, executive producer and founder of To Whom It May Concern. “Taking cues from the world of EDM, we created a clubby studio vibe with moody floral graphics, and metallic and neon accents on our new LED volume wall. Epic wedding films deserve an epic delivery on the production world’s latest and greatest LED technology.”    ■

The Next TV Summit on September 13, part of the 10th annual NYC TV Week, will for the first time include the Next TV Innovation Awards, recognizing CEOs, technologists, strategists, creatives, marketers and other executives leading some of the most innovative companies in the video business. Each day from Sept. 2-13, our Next TV SmartBrief will profile one of our seven 2022 Innovation Awards honorees. (You can sign up for the SmartBrief here.) For more information about the summit and the award winners and other NYC TV Week events visit nyctvweek.com.

William J. Rouhana 
Chairman and CEO Chicken Soup for the Soul Entertainment 

The name Chicken Soup for the Soul conjures feel-good self-help books in big-box retailers. But increasingly, the name should evoke the fast-growing streaming-video company that William J. Rouhana also heads. 

Chicken Soup for the Soul Entertainment just pulled off another notable deal, buying struggling Redbox Entertainment to fill in most of what Chicken Soup still needed to achieve Rouhana’s vision of an AVOD-centered powerhouse precisely positioned for the future of TV. The deal has one overlap: It’s adding yet another small AVOD channel. 

The company already has Crackle, Popcornflix and, yes, Chicken Soup for the Soul. The new channel will expand ad inventory. But the deal also brought 36,000 video-rental kiosks, a transactional VOD service and a loyalty program with 40 million entertainment-loving customers. 

It also swelled the company’s library to 51,000 assets. In a techmedia market full of giant fish devouring smaller ones, Rouhana finds ways to keep on building. 

“We wouldn’t be the first company to use a legacy business to finance a new-age business,” he said. “This gives us an underlying stability. I like the combination of underlying businesses, in this case, as a way to reduce risk.”

Previously announced Next TV Innovation Award honorees:

Todd Achilles
Co-founder, CEO and President, Evoca

Meredith Brace
Chief Marketing Officer, Samba TV

Matt Duarte 
VP of Strategy and Business Development YES Network 

Shalini Govil-Pai
GM and VP of TV Platforms, Google

Erick Opeka 
Chief Strategy Officer, Cinedigm

Cats. dogs, bunnies and more are coming to Chicken Soup for the Soul Entertainment’s ad-supported VOD service in Pet Caves, a new series created with sponsor PetSmart.

Pet Caves is hosted by pet behaviorist Kayla Oliver and celebrity design architect Nina Ferrer, who help animal lovers makeover rooms in their homes to accommodate their mostly furry family members.

In each episode, Oliver–who once worked at PetSmart no less–and Ferrer go to a PetSmart store for items and accessories they need to provide critter comforts.

The show will debut exclusively on the Chicken Soup for the Soul free streaming service, which is available on Vizio and Samsung smart TVs, starting September 1. Pet Caves will also be available for free on Sept. 15 via the company’s Crackle service. Redbox, recently acquired by Chicken Soup for Soul Entertainment, will also stream the show later this fall.

Darren Olive, executive VP of national sales and strategy for Crackle Plus, the Chicken Soup for the Soul division responsible for its streaming business, told Broadcasting+Cable that the idea for the show grew out of an annual meeting with PetSmart, already an ad client.

Chicken Soup for the Soul’s family-friendly programming over-indexes with pet owners and PetSmart was looking to reach audiences that no longer watch traditional television..

Crackle Plus hatched its Chicken Soup for the Soul AVOD network earlier this year, and “it really fit well into their initiative to target families in an environment that’s brand safe and trusted,” Olive said.

With streaming, Crackle is able to use pet ownership as a behavioral target to zero in on the consumers PetSmart is looking to reach.

In its discussions with Crackle Plus, PetSmart also said it was interested in integrating its brand direction into original programming, Olive said.

“We had been in development of the show Pet Caves kind of serendipitously as part of a push to do more branded content on our AVOD and fast channels,” Olive said. The show was a doggone good fit with the PetSmart tagline “Anything for Pets.”

“We said 'hey, we’ve got this show. It aligns really well with your tagline and what you’re looking to do.' It was an aha moment for us,” he said.

On top of that, Chicken Soup for the Soul has its own brand of pet food, which is sold at PetSmart. The Chicken Soup for the Soul brand pet food is being integrated into the series as well, Olive said.

“At PetSmart, we’re always seeking innovative ways to connect with pet parents and share our unrivaled expertise and love for pets,” says PetSmart senior vice president and chief marketing officer Will Smith. “Home is truly where our pets are, and what better way to show we’ll do anything for pets than by shining a light on the stories of people who revitalize their homes just for their furry, feathered, or scaly family friends? That’s exactly what Pet Caves does.”

In addition to being integrated into the show, PetSmart will be presenting the show with limited commercial interruptions. It will also get other show-adjacent opportunities, including custom billboards and pause ads (paws ads?) that show a static message from PetSmart when viewers pause the show.

Petsmart will also be featured in custom tune in ads and its commercials will run on Popcornflix and Red Box in addition to the Chicken Soup for the Soul and Crackle Channels.

Crackle Plus is also providing PetSmart with 20 short-form clips from the show it will distribute over its own social channels and internally to its employees.

Crackle Plus and PetSmart mutually agreed to have the show produced by TeamSheed Productions, a black-owned production company Crackle Plus had worked with before.

TeamSheed helped Crackle Plus and PetSmart showcase a diverse set of families as well as a broad range of pets, including a bearded iguana.

“We saw Pet Caves as a great opportunity to work with two beloved brands, Chicken Soup for the Soul Studios and PetSmart,” said Rasheed J. Daniel, principal and executive producer for Teamsheed. “As a black-owned business, we were also attracted to the diversity not only reflected in the show but also the values reflected in both of these esteemed organizations.”

It was also a stroke of luck that co-host Kayla Oliver had once worked at a PetSmart. “She had a great understanding of the brand and the company, so it was just this perfect marriage and perfect partnership,” Olive said. “We're hoping to springboard into a whole, a whole series of new shows and movies.”

Olive declined to say how much PetSmart is spending on Pet Caves, but said the retailer is now the company’s largest media partner in the pet category.

Pet Caves is executive produced by Rasheed J. Daniel of TeamSheed Productions and Michael Winter for Chicken Soup for the Soul Entertainment. Corey Noll and Lexi Brown serve as co-executive producers, and the series is distributed globally by Screen Media.  ■

Jonathan Katz, who launched the Katz Networks and sold them to E.W. Scripps, was named president of Chicken Soup For the Soul Entertainment, which completed its $375 million acquisition of Redbox Entertainment.

Katz, who left Scripps last year, will oversee the company’s operating businesses, including streaming services, Redbox kiosks and original content studios.

Also: Jonathan Katz Sees Technology Creating Opportunities in the TV Business

Galen Smith, who had been CEO of Redbox, was named executive vice chairman of Chicken Soup for the Soul Entertainment. He will oversee the company’s future growth plans, including future acquisitions.

Katz and Smith will report to William Rouhana Jr., chairman and CEO of Chicken Soup for the Soul Entertainment. 

“I’ve been looking forward to the day Redbox would become part of the Chicken Soup for the Soul Entertainment family – and today is that day. The Redbox brand is a fixture in American entertainment and now joins our powerful portfolio of streaming brands, including Crackle, Popcornflix, and Chicken Soup for the Soul,” said Rouhana,

“These collective assets create a fully formed streaming business for a new era of digital entertainment that we anticipate will accelerate the growth and profitability of our company well ahead of our original plans. The team at Redbox is incredible and will join an equally talented team across our Chicken Soup for the Soul Entertainment companies. I’m excited to welcome our new colleagues and look forward to sharing more about our plans for the future,” Rouhana said. 

Chicken Soup for the Soul Entertainment expects that the combined company will finish 2022 with a run rate exceeding $500 million of revenue and $100 million to $150 million of adjusted EBITDA. It expects to deliver annual run rate cost synergies in excess of $40 million in 2023. 

The company said it also sees numerous opportunities to drive revenue synergies from its complementary assets, including expansion of ad inventory through distribution of its larger content library and production pipeline across AVOD and FAST channels, and increased access to the TVOD window for original film productions.  ■

Chicken Soup for the Soul Entertainment said its Crackle Plus streaming video platform has renewed its relationship with iSpot.tv, with the new deal including the measurement of targeted reach and frequency for campaigns and support for select programmatic direct campaigns.

The new deal runs through 2023 and is the third year Crackle Plus has worked with iSpot, one of the big-data measurement firms offering a TV measurement alternative to Nielsen. 

Also: Advanced Advertising: iSpot.tv Says Advertisers Underspend on Streaming

“Crackle Plus is thrilled to extend its relationship with iSpot.tv, by offering our growing roster of brand marketers direct viewership data to reinforce the value of premium content. In-market campaigns resulted in driving not only incremental but efficient reach across the increasingly fragmented video landscape,” said Darren Olive, executive VP national advertising sales and strategy for Crackle Plus. “We look forward to our continued collaboration with iSpot.tv to identify new strategies for optimizing campaigns targeted towards specific audiences.”

iSpot has been providing Crackle Plus with real-time cross-platform TV measurement for its ad-supported streaming services.

“Crackle was among the first streaming publishers in the market to integrate cross-platform ad verification as a tool for demonstrating the unique value and audience it can deliver, something that also helps brands feel confident in their investments,” iSpot senior VP of media partnerships Stu Schwartzapfel said. 

iSpot currently has integrations with more than 300 streaming publishers, 500 brands, ad delivery platforms and 95% of TV networks in North America. 

The company’s unified measurement platform, which was recently chosen to power measurement on The Trade Desk, is providing alternative currency initiatives for NBCUniversal and conducting currency pilots with major media companies. ■

Crackle Plus said it reached an agreement under which five of its free ad-supported streaming TV channels will be launched on Allen Media Group’s Local Now platform.

The five channels joining the Local Now lineup are Crackle, Crackle Classics, Chicken Soup for the Soul, Popcornflix and Truli.

“We’re thrilled to bring our vast library of content to Local Now viewers, which between our five streaming services, will offer something for everyone,” said Philippe Guelton, president of Crackle Plus. “Expanding our distribution with Local Now also reflects our commitment to providing consumers with high quality, entertaining content for free with the support of advertisers who can now reach a brand new audience.”

Crackle Plus is a division of Chicken Soup for the Soul Entertainment.

“Crackle is a household name in family entertainment, and we are thrilled to partner and add their five channels to Local Now’s stellar lineup,” said Byron Allen, founder, chairman, and CEO of Allen Media Group – the parent company of Local Now. “Local Now is strongly committed to the free streaming space, and we continue to grow our platform by working with amazing brands like Crackle to deliver our viewers high-quality free content.” 

Local Now offers more than 450 free streaming channels, including a Local Now channel in every market the Local Now app is available on Roku, Apple TV, Amazon Fire TV, Android TV, Xfinity, Vizio, Samsung, Android and iOS devices. 

Crackle has original and exclusive programming like Taboo and the feature film The Mercy. Crackle Classics offers films and TV series such as the Laurel and Hardy and Little Rascals libraries. Popcornflix features action and adventure shows  like 20,000 Leagues Under the Sea and the two-part limited series Jules Verne’s Mysterious Island. Chicken Soup for the Soul has female-oriented programing including Smart Home Nation and Mothers and Daughters. Truli features family-friendly and faith-based content including the Bible series The Chosen. 

The Crackle Plus streaming services are distributed through Amazon Fire TV, RokuTV, Apple TV, Smart TVs (Samsung, LG, Vizio), gaming consoles (PS4 and Xbox One), Plex, iOS and Android mobile devices and on desktops at Crackle.com. Crackle Plus plans to expand to more than 90 touchpoints.

Crackle is also available in approximately 500,000 hotel rooms in the Marriott Bonvoy chain. ■

Its acquisition of struggling Redbox Entertainment fit like interlocking pieces of a jigsaw puzzle with Chicken Soup for the Soul’s various streaming-video holdings, said CSS Chairman and CEO Bill Rouhana hours after the two companies announced a $375 million all-stock deal that leverages the largely complementary offerings of each. 

“They built their transactional video business, their PVOD business, their FAST TV business with 130 FAST channels,” said Rouhana of Redbox in an exclusive interview for Next TV. “That's a perfect fit for what we do with our multiple AVOD networks —  Crackle, Chicken Soup for the Soul, PopcornFlix — with our content library with just over 8,000 movies and TV shows that we own and 24,000 television shows and14,000 films that we have AVOD rights to. (We have) a huge sales force that sells AVOD ads, they don't have what we do. We were going to spend tens of millions on the tech they've already developed, they were going to spend tens of millions on the tech we developed.”

Both companies also have modest original programming plans that now will be combined, one of several ways Rouhana expects the companies can operate more efficiently combined. 

“What we're gonna do, we'll make 25 (originals) instead of 37, which is what we would have made between the two of us,” Rouhana said. “That will save about $30 million of capital by doing that, but accomplish the same goal that we had. So yes, we will keep doing it, but in a much more cost effective way for the two companies.”

The deal even provides more inventory on Redbox channels for a CSS ad-sales team that has oversold its own channels each of the past five quarters. 

“We've been sold out,” Rouhana said. “So having these extra places to put our ads is of great value to us. We don't really need a bunch more salespeople, what we need is a bunch more viewers.”

CSS is buying Redbox for $50 million in cash and the assumption of $325 million in debt, in a transaction expected to close within two to three months. Rouhana owns the parent Chicken Soup for the Soul, which is majority owner of the video company; investment giant Apollo Global Management is majority owner of Redbox, eliminating any likelihood of hiccups in shareholder approvals of the two public companies.  

The deal itself should appeal to shareholders especially of the battered Redbox, which now becomes part of a combined operation whose revenues should top $500 million next year. 

Raging inflation and the growing possibility of a recession should make the companies’ combined offerings even more appealing, providing what Rouhana called “a value-conscious, premium entertainment opportunity, (with) the chance to give people access to great entertainment in a reasonable, economical way. I think that's more and more important with inflation. (The services) appeal ultimately to a consumer who wants to find inexpensive access to great content.”

The Redbox streaming app likely will soon feature the CSS networks alongside its own FAST channels, its Premium VOD sales, and its ability to reserve physical DVDs at a local Redbox rental kiosk. 

The merged companies will be able to realize significant corporate savings even before the deal closes, though Rouhana said layoffs are unlikely, especially given the challenges the rapidly growing CSS has faced in filling positions over the past year. 

Earlier this year, Redbox CEO Galen Smith laid off 150 people, roughly 10% of his company, as it took on debt to manage a sharp downturn in its business caused by pandemic-related changes in customer behavior. Rouhana said he expects those problems to ease as life, and movie-watching habits, return to something closer to normal. 

“That is a very strong cash-flowing business when it's normal,” Rouhana said. “The last couple of years, with no theatrical releases to speak of, it was losing money. Now it's breaking even because Galen has done such a good job resizing it. But as there are more theatrical releases, I'd expect that this (segment) will go up dramatically. Now that (big theatrical releases are) starting to come again, I believe that's going to be very, very big positive for that business.”

Otherwise, the several streaming services are likely to remain separate brands for some time to come. 

“Given how fractionalized the industry is, how many AVODs there are, how many SVODs there are, how many of these choices (consumers have), we need to be available to consumers in a lot of different places with a number of different brands in order to get the most opportunity to attract viewers,” Rouhana said. The various services are now available on around 40 platforms. 

Even in taking on Redbox’s debt, which was recently secured to help the struggling company get through, Rouhana said his company was able to restructure the debt to provide considerably more flexibility, with a five-year term, $80 million in revolving credit, and 2.5 years before any debt covenants kick in.

“So we built into the debt structure real financial flexibility, so that we have the time for the rebound to occur, time for the synergies to be implemented, and I think, really way more than enough time, frankly, to turn this into a major business,” Rouhana said. 

The kiosks, touted by Redbox as one of its competitive differentiators, appeal to Rouhana too, and for several reasons, he said. 

For one, the 38,000 kiosks function as physical, interactive promotional billboards for Redbox offerings at Walmarts, drug and grocery stores and similar locations across the country. It’s a different kind of distribution network, but also one that generates mounds of data about the preferences of its 40 million customers. 

For good measure, the company’s kiosk repair and maintenance teams also generate income as contract service providers to other kiosk-operating companies such as Amazon and ecoATM. 

The deal comes amid what’s been a very good week for proponents of ad-supported streaming: Netflix and Disney+ both have disclosed plans to launch an ad-supported services by year end, while Fox’s quarterly earnings were boosted by big jumps in ad revenue at Tubi. Even Apple, while keeping TV+ generally ad free, is restructuring its Services executive ranks to focus more on the advertising opportunities generated by its forays in live sports and beyond.  

And though ad-supported streaming operations networks may trail heavily funded subscription services for now, Rouhana said they’re catching up quickly, as consumers look for bargains in a weakening economy and overcrowded streaming market. 

“I thought this was inevitable for a long time,” Rouhana said. “No matter who you are, you are going to be watching ads on your page or a free service. We just don't know why people would want to pay to watch the ads when they can watch for free.”

Crackle Plus, the Chicken Soup for the Soul Entertainment unit that operates the company’s streaming services, said it has launched an ad-supported video-on-demand service with an application on Vizio smart TV sets.

The new app will give viewers free access to 3,000 hours of content including exclusive  original Chicken Soup for the Soul series such as Smart Home Nation. The service will also have feature entertainment and lifestyle programming, original scripted movies, Hollywood blockbusters and classic TV series.

“Vizio is pleased to launch the Chicken Soup for the Soul app and offer our audience titles from such a beloved brand,” said Katherine Pond, VP of business development for Vizio. “Bringing the feel-good content that Chicken Soup for the Soul is known for to Vizio audiences is another way that we can deliver on our promise to offer entertainment that viewers know and love.” 

Also: Vizio Adds Streaming VOD to WatchFree Plus Service

Before launching the VOD app, Chicken Soup for the Soul had been starting free ad-supported streaming channels. It launched one on Vizio’s Watch Free Plus service. Chicken Soup for the Soup also has free ad-supported streaming channels on Plex, Redbox, LG, Stirr and Xumo.

“We are excited to bring the Chicken Soup for the Soul AVOD service to millions of Vizio viewers. We plan to provide a unique blend of entertainment from content and distribution partners who share our vision,” said Philippe Guelton, president of Crackle Plus.  

Among the Chicken Soup for the Soul originals on the VOD service are the series Smart Home Nation and Vacation Rental Potential. Exclusives on the VOD service include the film Senior Moment, starring William Shatner, Jean Smart and Christopher Lloyd; Off the Rails, with Juku Dench and Kelly Preston in her final film; Hope Gap, starring Annette Benning, Bill Nighy and Josh O’Connor; and Thanks for the Memories, a two-part limited series romantic comedy with Tamzin Merchant, Tom Wlaschiha and Bekka Bowling.

Some of the programming on the Chicken Soup for the Soul VOD app is programming from Kin, including 18 exclusive episodes of Tia Mowry’s Quick Fix. 

In preparing for the AVOD launch, Chicken Soup for the Soul made obtained original and exclusive programming in content deals with Kin and Reel One in February.

Also: Chicken Soup for the Soul Gets 2,500 Hours of BBC Studios Content

“For years Chicken Soup for the Soul has been the go-to destination for those looking to find comfort, enlightenment, humor, and inspiration,” said Amy Newmark, author, editor-in-chief and publisher of the Chicken Soup for the Soul self-help book series. “With our new AVOD streaming service we are thrilled to now have a home for the exciting video content that we have been creating for years. We look forward to producing new series that will help us better serve our audience and change the world one story at a time.”■

Chicken Soup for the Soul Entertainment said it reached a multi-year content deal with BBC Studios to license more than 2,500 hours of content.

The programming will appear on Crackle Plus ad-supported streaming services including Crackle, Popcornflix and Chicken Soup for the Soul.

“The BBC has been producing highly sought-after content for years and we expect this content to perform exceptionally well on our streaming services,” said William J. Rouhana Jr, CEO of Chicken Soup for the Soul Entertainment. “The long-term nature of this agreement enables us to plan ahead to maximize the value of the content to our viewers as well as our advertisers, the BBC, and us.”

In April, Crackle Plus streaming services will be adding Ripper Street, starring Matthew MacFadyen of Succession, and A Life in Ten Pictures will have its exclusive U.S. premiere in June on Crackle Plus. 

The BBC Studios deal was done by Screen Media Ventures, a Chicken Soup for the Soul Entertainment company. Screen Media is the exclusive supplier of original content to Crackle Plus streaming services.

“Through this multi-year partnership with Screen Media, we are making it even easier for customers to discover and access our robust programming catalog. The best of British content has never been easier to find in the Americas, and we’re excited by this new relationship with a leading AVOD service,” said Dina Vangelisti, executive VP, content sales, BBC Studios. ■

Chicken Soup for the Soul Entertainment’s Halcyon Studios said it is looking to produce five projects with international appeal for 2022.

The projects include a new version of Dinotopia and a fresh adaptation of Ernest Hemmingway’s Old Man and the Sea.

“We’ve built an impressive line-up of original and adapted content with both U.S. and international appeal. Our strong 2022 slate will position us for success as we look to produce, distribute and finance high-end projects that tap some of today’s most talented creatives,” said David Ellender, CEO of Halcyon Studios. 

Halcyon’s slate includes:

Dinotopia, based on the books by James Gurney that inspired a move and series for ABC in the 1990s. The new version is being developed by Jordan Kerner with Halcyon.

Under The Wave at Waimea is an adaptation of Paul Theroux’s book of the same title. Kevin Nunn will work on the adaptation with Steven Hawk, former editor of Surf Magazine in collaboration with Stone Village Pictures.

Death Line teams Cary Sherman with Jeremy Dyson to create a franchise that honors the original franchise, which made London’s streets and subway scary.

The Untitled James Ellroy Project takes place in Beverly Hills, where a jewel robbery turns into a homicide and then a media circus. Showrunner Ed Decter is working with Stewart Till and Richard Potter on the limited series.

The Old Man and the Sea, with Halcyon working with Pablo and Juan de Dios Larrain’s Fabula to develop the Hemmingway classic for a new generation. The studio is also working with the Hemingway Estate on the project.

“To amplify our brand in this marketplace, we’re reaching back into our extraordinary library, and forward to talent who we admire to celebrate character journeys that embrace CSSE’s mission to change the world one character at a time,” said Matt Loze, president of scripted entertainment of Halcyon Studios.

Halcyon produces Amazon Prime’s Hunters and Mysterious Benedict Society with Fox and Disney Plus. ■

Ad-supported streaming company Chicken Soup for the Soul Entertainment reported record revenue growth of 50% year over year to $29.1 million in the third quarter, but still missed Wall Street expectations of around $29.6 million in sales. 

Also: Making FAST Video Crackle Again with Philippe Guelton and Chicken Soup for the Soul

The so-called CSS Entertainment, which purchased Sony ad-supported streaming platform Crackle back in March 2019 and just relaunched AVOD service Popcornflix, reported a net loss of $16.7 million in the third quarter, up from a net loss of $13 million in the third quarter of 2020. 

Adjusted EBITDA was $4.9 million compared to $4.2 million a year ago.

“We delivered a strong quarter that increases our confidence that we can meet our 2021 goals, with record all-time revenue and the second-best Adjusted EBITDA performance in our history,” said William Rouhana Jr., chairman and CEO  of Chicken Soup for the Soul Entertainment. 

“We are seeing momentum in our AVOD networks, highlighted by viewership growth at Crackle in Q3 and strong growth at Popcornflix since our September relaunch," he added. "This growth reflects our focus on expanding distribution of our networks and our lineup of original and exclusive content, including additional titles from the recently acquired Sonar assets, as well as our new technology platforms. With the initial launch of our highly anticipated Chicken Soup for the Soul streaming service, as well overall ad impression growth at Crackle Plus, consolidation of our television production activities, Screen Media’s growing lineup of acquired films, and our recent international partnership and acquisition activity, we are poised to accelerate execution of our strategy into 2022.”  

Magnite said its sell side platform will be providing media buyers with content metadata for Chicken Soup for the Soul Entertainment’s streaming services Crackle and Popcornflix.

Magnite’s content capabilities let buyers measure delivery by show, genre and TV rating at the show and episode level, making CTV more similar to traditional TV.

“Magnite has been one of our most valued ad tech partners at Crackle Plus. Its technology and real-time reporting continue to help us deliver rich insights for our advertising partners,” said Tim Ware, executive director of programmatic at Chicken Soup for the Soul’s Crackle Plus unit.

“Crackle Plus continues to lead the AVOD streaming service providers in delivering unique reach across its top original and exclusive programming, blockbuster movies and classic TV shows,” Ware said. “Enabling brands to buy and report on the premium environments they’ve paid for reinforces our value proposition. Our demand partners are asking for this kind of transparency as they invest more in premium CTV content and Magnite provides a turnkey solution.”

Crackle Plus can use the platform to get a better handle on bidding and buying behavior in real time. 

“With access to these granular insights, we’re able to help publishers like Crackle Plus more effectively package and price their inventory,” said Adam Lowy, head of North American demand sales and strategy at Magnite. “As more publishers share this kind of data, the advertising community benefits from greater transparency and advertisers can have more confidence in their buys.”

Just days after the announcement that it would buy a majority interest in Sony Pictures Television’s Crackle online video unit sent its stock into the stratosphere, Chicken Soup for the Soul Entertainment shares began to retreat, losing about 17% of their value in early trading Monday.

CSSE shares surged about 36% on March 29 -- rising $3.32 per share from $9.06 each to $12.36 each -- after it announced the Sony deal. After the deal is closed, CSS Entertainment and Sony will launch a new streaming video joint venture -- Crackle Plus.

Variety first reported the Crackle deal. 

The stock started to retreat a bit on April 1, giving back about half of that gain in early trading, falling as much as 17% ($2.14 per share) to $10.22 each. The stock was trading at $10.56 per share at 12:06 p.m. on April 1, down $1.80 each or 14.6%.

In addition to contributing the Crackle brand, Sony will also kick in its monthly active users and its ad rep business to the joint venture. SPT and Crackle Plus will also enter into a license agreement for the rights to popular TV series and movies from the Sony Pictures Entertainment library.

In addition, New Media Services, a wholly-owned subsidiary of Sony Electronics Inc., will provide the technology back-end services for the newly formed joint venture.

Sony will retain ownership of Crackle’s original content library, but will make it available for licensing to the joint venture.

“Crackle is a valuable asset and we feel confident it will thrive and grow in this new environment with CSS Entertainment,” Sony Pictures Television chairman Mike Hopkins said in a press release announcing the deal. “We were drawn to CSS Entertainment as our partner in this venture because of its aggressive, entrepreneurial approach. The CSS Entertainment team have the enthusiasm and strong business acumen to ensure Crackle Plus is poised to maximize the growing opportunities in the AVOD marketplace.”

Chicken Soup for the Soul Entertainment, the company behind the popular inspirational book series of the same name, plans to contribute six owned and operated AVOD networks (Popcornflix, Truli, Popcornflix Kids, Popcornflix Comedy, Frightpix, and Espanolflix) and subscription video-on-demand platform Pivotshare to the joint venture.

“This transaction positions CSS Entertainment as a leader in the high-growth AVOD business,” said CSS Entertainment chairman and CEO William J. Rouhana Jr., in a press release. “Creating a new platform that brings together CSS Entertainment’s VOD assets with SPT’s Crackle brand and AVOD assets, establishes a compelling offering for viewers and advertisers. Consistent with our business plan, we plan to build Crackle Plus aggressively and profitably through organic growth and, potentially, acquisitions.”

Crackle Plus is expected to have a combined audience of about 10 million monthly active users on its owned and operated networks, as well as millions of additional users from its ad rep business, making it one of the largest AVOD platforms in the U.S.