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 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."

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’s streaming apps Redbox and Crackle are marking Black History Month with three original series that have been created as part of a relationship with Publicis Media’s APX Content Ventures.

One series, Homecoming: The Journey to the Year, is presented by American Family Insurance. The show uses narration, interviews and archival photos and video to tell homecoming stories from Historically Black Colleges and Universities.

The other series are The HBCU Honors Awards Show and Miami’s Richmond Heights: The Black Shangri-La. 

All three are produced by Hip Rock Star. 

“We’re thrilled to be working with Hip Rock Star and APX Content Ventures to bring these amazing series to our viewers,” Chicken Soup for the Soul chief content officer Phil Oppenheim said. “I know our audience will find them inspiring and insightful.”

The inaugural HBCU Honors Award Show showcases the brightest HBCU alumni.  The event was held at the Black Archives-Historic Lyric Theater in Miami, Florida. Emmy award-winning actress and producer Wendy Raquel Robinson, a Howard University alumna, hosted.

Miami’s Richmond Heights: The Black Shangri-La is based on the book Images of America: Miami’s Richmond Heights by authors Patricia Harper Garrett and Jessica Garrett Modkins. The documentary follows the lives of Black World War II veterans who lived in a self-contained community.  The documentary will also take a closer look at the socioeconomic fabric of this time, segregation and civil rights.

“The debut of these highly anticipated series parallel so harmoniously with the importance of telling and preserving Black history,” Jessica Garrett Modkins, CEO and founder of Hip Rock Star and the docuseries’ executive producer, director, and writer, said.

“It is our mission to be a catalyst for truth — to provide intentional documentation of our Black experience,” Modkins said. “APX’s support of Black content curators is unprecedented and provides an opportunity for filmmakers to continue to validate the life experiences of Black people. Telling these stories and honoring the amazing individuals in our projects is essential to preserving our history. I am honored that we can give viewers distinctive, meaningful, and comprehensive content and entertainment that elevates our unique experiences, voices, and timeless stories surrounding the Black community.” ■

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 is partnering with Publicis Media’s APX Content Ventures to produce a reality show starring comedian J.B. Smoove that will run across both its Redbox and Crackle ad-supported streaming platforms. 

Premiering in late 2023, Chicken Soup describes Dirty Pool with J.B. Smoove as "Dinner for Five meets Celebrity Poker over a pool table." Smoove, best known these days for playing Larry David's live-in sidekick on HBO's Curb Your Enthusiasm, will be joined by his celebrity friends who talk shop around a pool table. "No topic is off limits, including current events and other celebrities," a Chicken Soup press release stated. 

The series is being funded through Publicis Media’s $25 million “Inclusion Investment Fund” to increase diverse content creation.

Chicken Soup for the Soul Entertainment acquired Crackle from Sony in late 2020. And over the spring, it added financially distressed Redbox Entertainment to its portfolio. 

“The brand integrations into these series are an organic way for companies to reach audiences that are no longer watching linear TV. We look forward to announcing additional projects soon,” said Philippe Guelton, chief revenue officer of Chicken Soup for the Soul Entertainment.

The two companies previously partnered on Inside the Black Box, which features conversations, performances, workshops and discussions about the role race plays in the entertainment industry.

Added Kerry Bianchi, Global CEO for APEX Exchange: “Our partnership on Inside the Black Box embedded our client in a seamless and authentic way that also reflected who they are as a brand. Finding quality programming that engages consumers and naturally ties to the ethos of our clients’ brands is a win-win for everyone.”

Redbox Entertainment capped the latest chapter of a wild financial ride Thursday, with closure of its purchase by Chicken Soup for the Soul Entertainment. 

Galen Smith, formerly CEO of the previously distressed Redbox, will now serve as executive vice chairman of Redbox and Chicken Soup for the Soul Entertainment, with his team kept intact. Smith will oversee the company’s future growth plans, including strategic acquisitions.

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

Also, former Scripps executive Jonathan Katz was named president of Chicken Soup for the Soul Entertainment. Katz will oversee the company’s operating businesses, including streaming services, Redbox kiosks and original content studios.

Both executives will report to William Rouhana, chairman and CEO of Chicken Soup.

“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,” Rouhana said.

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

Redbox IPO'd last October via special purpose acquisition company. It had plans to transition the marketing heft of its 36,000 DVD/Blu-ray rental kiosks -- which have more than 40 million members -- into a thriving streaming business based around FAST, AVOD and TVOD. 

But trouble emerged with disruption of the theatrical pipeline due to COVID -- the revenue generated by the nascent streaming operations couldn't offset the declines in consumers visiting kiosk for what was a dwindling supply of fresh theatrical films at the time. Redbox losses doubled to nearly $141 million in 2021. 

For its part, Chicken Soup believes that with an improving content pipeline, and the growth of a three-pronged streaming business, things will soon turn around for Redbox -- it's projecting annual revenue to soon triple to around $500 million. 

According to Rouhana, Redbox's kiosks and AVOD, FAST and TVOD platforms, combined with a library that features 51,000 titles, "creates 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." 

Under terms of the deal, existing Redbox shareholders will receive a fixed exchange ratio of 0.087 of a share of class A common stock of Chicken Soup for the Soul Entertainment per Redbox share. Chicken Soup stockholders will own approximately 76.5% of the combined company, and Redbox stockholders will own approximately 23.5% of the combined company, on a fully diluted basis.

Shares of cash-strapped Redbox Entertainment began to level off Thursday after a spike caused by the same Reddit anti-short-seller phenomenon that momentarily boosted similarly troubled AMC and GameStop last year, and more recently, bankrupt cosmetics company Revlon. 

Redbox, which is trying to transition its business from DVD kiosk rentals to ad-supported streaming and went public via special purpose acquisition company late last year, found itself cash-strapped and on the ropes on May 11, when Chicken Soup for the Soul Entertainment announced a $375 million all-stock deal to buy the company. 

With that deal still pending, and Redbox getting attention from short-sellers, the stock bottomed out on May 13 at $2.68 a share. That's when the denizens of the RDBX subreddit took notice and began to buy shares in an effort to thwart the short-sellers. 

By June 13, Redbox was trading at $15.27 a share on the Nasdaq. (It had leveled off to $9.85 a share as of after-hours trading Thursday.)

"Will RDBX stock follow the same path as AMC stock of 2021?" asked one poster. 

It was around the same time last year that a subreddit for AMC Holdings rose up to spite traders who place bets in the casino known as Wall Street on the stock going down (aka short sellers), spiking the crippled theater chain owners stock by nearly 6X. 

AMC Holdings stock ultimately returned to around the level it was trading at before the Reddit trading community got involved. 

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.”

Chicken Soup for the Soul Entertainment said it has agreed to acquire Redbox Entertainment, which has stumbled in making a pivot to streaming from renting DVDs from kiosks in retail outlets.

Chicken Soup for the Soul said the combined companies will have one of the largest independent ad-supported VOD platforms.

“Today marks a transformative moment for Chicken Soup for the Soul Entertainment and an inflection point for the ad-supported streaming industry,” Chicken Soup for the Soul Entertainment chairman and CEO William J. Rouhana Jr. said. “Our acquisition of Redbox will accelerate the scaling of our business as it combines complementary teams and services to create the streaming industry’s premier independent AVOD. 

Also: Making Fast Video Crackle Again With Philippe Guelton, 'Chicken Soup' 

“Redbox has 40 million customers in its loyalty program and high-potential digital television assets, including carriage of over 130 FAST digital channels on its Free Live TV platform, as well as a robust TVOD and PVOD platform,” he added. ”Together, we will build a fully developed AVOD and FAST streaming business: proven branded streaming services, formidable content and production capabilities, and a strong AVOD and FAST ad sales operation.”

Redbox reported $140.8 million in losses for 2021 with revenue dropping 47% to $288.5 million. 

The company said revenue from its ad-supported video-on-demand (AVOD) and free, ad-supported television (FAST) businesses wasn’t growing rapidly enough to keep up with the decline of its DVD rental business.

The company laid off 150 staffers in April. 

Redbox went public in October via a special purpose acquisition company (SPAC), but revealed financial troubles in an earlier 8-K filing back in early January.

Redbox shareholders will be getting 0.087 shares of Chicken Soup for the Soul Entertainment class A common stock per Redbox shares. The shares are worth about $50 million. Chicken Soup is also assuming about  $325 million in Redbox stock.

Redbox shareholders, including Apollo Global Management, will own about 23.5% of the combined company.

“We believe that Chicken Soup for the Soul Entertainment is the ideal partner for Redbox,” Redbox CEO Galen Smith said. “By joining forces, we will accelerate Redbox’s transition from a physical to high growth digital media company and be the only entertainment provider truly focused on value for consumers. This all-stock transaction provides Redbox stockholders with the opportunity to participate in the significant near- and long-term upside potential of a diversified and growing company with greater scale and resources. With our footprint of more than 38,000 kiosks, diverse content libraries and combined streaming platforms, we will be well-positioned to deliver consumers a wealth of high-quality entertainment options.”

Chicken Soup for the Soul said it expected the acquisition to be accretive to adjusted earnings before taxes, interest, depreciation and amortization (EBITDA) in 2023 and present opportunities to cross-sell. The company sees $40 million in cost synergies and expects to end the year with a run rate of more than $500 million in revenue and $100 million to $150 million in adjusted EBITDA. ■

Struggling Redbox Entertainment has seen its stock price more than double to around $9 a share following an announcement that the company secured a $50 million line of credit. 

Redbox, which is enduring an unexpectedly faster decline of its core DVD/Blu-ray rental kiosks business than it is development of revenue from streaming, also announced that CFO Kavita Suthar will exit the company. 

Mitchell Cohen, who according to Redbox has served as CFO and COO "at several public and private companies," will take over as interim CFO. 

The Chicago native Suthar, a Redbox veteran who joined former parent company Outerwall in 2015, oversaw Redbox's initial public offering via a special purpose acquisition company last October. 

Now she's out of a job. 

“Kavita played an important role in Redbox’s public listing and provided the sound financial leadership required to navigate the process successfully,” said Redbox CEO Galen Smith. “On behalf of the Board and executive team, I’d like to thank her for her contributions over the years. We wish her the very best in her future endeavors.”

As for the credit line, that was reported to the SEC last week and arrives via a restructured “Voting and Support Agreement” with HPS Investment Partners.

Redbox reported a loss of $140.8 million in 2021 and largely blamed it on COVID-19 damage to the theatrical motion picture pipeline -- less movies in theaters means fewer profitable disc rentals at Redbox's nearly 40,000 kiosks nationwide. 

Redbox is trying to ramp up AVOD and FAST businesses to transition its customer base of around 40 million users to streaming. 

Content production studio Gunpowder & Sky has launched a free ad-supported streaming TV (FAST) channel based on its horror-themed Alter service.

The studio’s Alter FAST service will initially launch on distribution outlets Samsung TV Plus, STIRR and Redbox, with more deals pending, according to the company. The Alter brand currently has more than 6 million subscribers across social media services Facebook and YouTube.  

The Alter FAST launch follows the studio’s FAST launch of sci-fi channel Dust, which is currently in front of 100 million homes, according to Gunpowder & Sky. 

“Alter is committed to bringing viewers the best quality horror content in the world, from the freshest voices in the genre,“ Alter Senior Manager of Acquisitions Sophie Carroll said in a statement. “We are excited for an Alter FAST channel to bring more attention to our extensive catalog of originals, as well as highly-curated films and series. It’s a channel for horror fans, by horror fans.” 

Gunpowder & Sky was founded in 2016 by former MTV exec Van Toffler and Floris Bauer, in partnership with The Chernin Group and AT&T.

Redbox Entertainment has reported more bad news to the SEC, revealing in its 10-K filing that its losses doubled in 2021 to nearly $140.8 million. 

Revenue, meanwhile, dropped around 47% to $288.5 million, as programatic ad sales generated by Redbox's nascent AVOD and FAST businesses couldn't grow nearly fast enough to keep up with the decline of its core DVD rental kiosk operation. 

Redbox stock, which opened last year trading at over $15 a share, was down to around $2.20 a share Monday. 

Data published two weeks ago by the former App Annie (now data.ai) revealed that Redbox mobile app usage is heavily favored in the U.S. among millennial-age consumers, ranking No. 1 in monthly active users for all mobile OTT apps. 

However, it's well established that Redbox is in a bit of trouble. The company, which just went public via SPAC back in early October, reported the layoff of around 150 staffers two weeks ago. 

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

And in a January 8-K filing to the SEC, Redbox confirmed that it was tapping into the last $15 million of a revolving credit line, noting that sustained COVID-19 restrictions on the theatrical distribution pipeline had badly cut into its core business -- with big movies like Paramount's Top Gun: Maverick kept on the shelf during the pandemic, there were simply fewer big movie titles available at Redbox's 38.3 million rental kiosks nationwide. 

Notably, Redbox earned nearly four times as much revenue in 2019, the last year unaffected by the pandemic, when it brought in around $858.4 million on the strength of 140 theatrical titles entering the physical home video rental window that year. 

In 2020, revenue slipped to $546.2 million, with the number of available rental titles cut by more than half to just 68. 

Last year's theatrical bounty was only down 16% to 57 titles, but revenue was cut nearly in half. So it wasn't just that there were fewer movie titles to justify consumers driving down the street to a 7-Eleven store to visit a Redbox kiosk. With the pandemic reshaping consumer habits, fewer folks are renting movies in physical formats. 

According to Digital Entertainment Group, overall rentals of DVD and Blu-ray titles declined just over 21% in the U.S. in 2021 for the entire domestic video business. 

Redbox ended 2021 with 38,379 rental kiosks in 32,586 locations, down from 40,026 kiosks in 33,661 locations in 2020. 

Redbox's stated goal is to transition its kiosk users, which it has termed late adopters, into users of the ad-supported streaming services also available in its app -- the AVOD service Redbox Free On Demand and the FAST-oriented Redbox Free Live TV. Redbox also supports rental and sale of digital titles (TVOD) on its app. 

"If you think about Redbox being an almost 20-year-old business, that becomes really, really powerful, because we're not necessarily competing for the same customers that everyone else is," Redbox CEO Galen Smith told Next TV back in September. "We've got this unique defined customer base that loves us and is loyal to us. And what we want to do is continue to expand the way that we serve their needs.”

Redbox hasn't released data on how many consumers are using its service, but the data.ai report suggests its digital offerings have at least some traction in the market. 

In terms of monetization, Redbox says its advertising business includes both programmatic and direct sales. 

Listing risks to its business its 10-K filing, Redbox cited "increased competition in the advertising video-on-demand segment," specifically noting platforms including YouTube, Crackle, Disney Plus and Peacock. 

Redbox provides the top mobile app for millennial-age consumers in the U.S., while the Plex app ranks super-high in that 25-44 age group across not just the U.S., but in Canada, the UK and Australia, as well. 

Redbox and Plex also rank high among Gen-X and Boomer consumers in the U.S. (defined as anyone older than 45), but the TV Guide and DirecTV mobile apps rank highest in monthly active users among those older age groups.

So says the erstwhile App Annie, now going by the lower-cased moniker "data.ai," which just published its latest "State of Media and Entertainment" report. As first noticed by Protocol, the report is some surprising nuggets -- beyond the fact that two aspiring U.S. ad-supported streaming providers rank so highly with millennial-aged consumers.

For example, the Crunchyroll mobile app ranks No. 1 in monthly active usage among Gen Z consumers measured by data.ai, not just in the United States, but in Canada, the UK and Germany, as well. Crunchyroll comes in No. 2 among 16-24-year-olds in France and Australia.  

For its part, data.ai is only measuring usage of Apple iOS and Google Android mobile apps, which almost undoubtably explains why the most popular subscription streaming apps -- Netflix, Disney Plus and HBO Max, for example -- show up in the top 10 for monthly active users for Gen-Z, but don't rank for older consumers, who prefer to watch these services on devices like smart TVs. 

Redbox Entertainment said in an 8-K filing to the SEC that is laying off 10% of its 1,467 employees, with the lingering economic effects of COVID-19 badly impacting its business. 

Oakbrook Terrace, Illinois-based Redbox said the job cuts will reduce its annual overhead by $13.1 million, while incurring a one-time charge of $3.8 million to cut ties with its workers. 

Redbox went public in October via a special purpose acquisition company (SPAC), but revealed financial troubles in an earlier 8-K filing back in early January. At that time, Redbox said it was cashing out the remaining funds on a $15 million revolving credit facility it had established earlier. The cited cause of its troubles: The surge of the omicron variant further impacted the big-release theatrical movies available for rent at Redbox's more than 40,000 disc rental kiosks nationwide. 

“During the fourth quarter of 2021, Redbox had 24 theatrical releases, which was lower than expected,” Redbox said in its January SEC filing. “In addition, the significant increase in impacts from the omicron variant caused disruption to the business. As such, Redbox rentals have not recovered to the extent expected and, notwithstanding the year-over-year increase in new releases, were lower than the fourth quarter of 2020. Historically, rentals have been correlated with the number and quality of new theatrical titles released in a quarter.”

The slowdown to its core business came at a particularly exposed time for Redbox, which is investing heavily in ad-supported video streaming, as well as its own movie production operation. 

We don't know how bad Redbox’s fiscal fourth quarter was because the company asked the SEC for grace on its annual 10-K filing, citing the expense and effort it would require to put the document together. 

But for Q3, Redbox lost $92.9 million, up over the $39.1 million it bled out in the pandemic-affected third quarter of 2020. 

After peaking at nearly $18 a share in January, Redbox shares are down below $2.25 on the NASDAQ as of late Monday morning trading. 

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

It‘s an extraordinarily quick crash for Redbox, considering that it was only in late September that company CEO Galen Smith outlined an audacious plan to transition a email list of more than 40 million loyal disc renters into the streaming age. 

“If you think about Redbox being an almost 20-year-old business, that becomes really, really powerful, because we’re not necessarily competing for the same customers that everyone else is,” Redbox CEO Galen Smith told Next TV in September. “We’ve got this unique defined customer base that loves us and is loyal to us. And what we want to do is continue to expand the way that we serve their needs.” ■

Redbox Entertainment, which completed its SPAC IPO in late October, has already hit the hard times.

The Oakbrook Terrace, Illinois-based company filed an 8-K report with the SEC earlier this month, detailing the troubles that have seen its stock price tumble from a high of $17.93 a share on Nov. 4 to just $2.20 as of midday trading on the Nasdaq Tuesday. 

According to the filing, Redbox borrowed the remainder of a revolving credit facility on Jan. 28.

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

In the filing, Redbox said its overall business was "negatively impacted" by the effects of the COVID-19 pandemic. Although the company is trying to transition its revenue base to ad-supported streaming, it's still heavily reliant on the more than 40,000 DVD and Blu-ray rental kiosks spread across the U.S. 

But with theatrical film releases continuing to be suppressed by the pandemic in the fourth quarter, fewer new-release titles were available at Redbox kiosks. 

"During the fourth quarter of 2021, Redbox had 24 theatrical releases, which was lower than expected," Redbox said in its SEC filing. "In addition, the significant increase in impacts from the Omicron variant caused disruption to the business. As such, Redbox rentals have not recovered to the extent expected and, notwithstanding the year-over-year increase in new releases, were lower than the fourth quarter of 2020. Historically, rentals have been correlated with the number and quality of new theatrical titles released in a quarter."

Redbox also said its bottom line has been impacted by "increased marketing and on-demand expenditures," as well as a ramped up content volume. 

"During that period, increased costs have not been offset by an increase in revenues," Redbox said. 

And that's still not all -- the company also cited "an increase in competition from new and existing competitors." 

With the overall U.S. disc rental business cratering nearly 21% last year, according to the Digital Entertainment Group, Redbox's contention about the DVD market makes a lot of sense. 

But its latter assertion about "increased competition" might strike some investors as puzzling, given that Redbox advocated its transition into a publicly traded "multi-faceted" media-tech company by describing a somewhat cornered market of underserved "late-adopter" consumers -- folks who still regularly rent titles from its kiosks, but who have yet to join the streaming revolution.

"If you think about Redbox being an almost 20-year-old business, that becomes really, really powerful, because we're not necessarily competing for the same customers that everyone else is," Redbox CEO Galen Smith told Next TV in September. "We've got this unique defined customer base that loves us and is loyal to us. And what we want to do is continue to expand the way that we serve their needs.” ■

Redbox said it made a deal to five of its free ad-supported streaming TV channels carried on the LG Channels platform on LG smart TVs.

Redbox Free Movies channel is already on LG Channels, Redbox said. Also coming to LG Channels are Redbox War and Westerns, Redbox Holiday, Redbox Rewind and Redbox Romance. 

Also: Redbox Gets More Movies To Stream from WarnerMedia, Sony

“Redbox is known for being a destination for movies, and these FAST channels will bring a wide range of great movies and TV for viewers via LG Channels,” said Chris Yates, general manager of Redbox on Demand. “From westerns to holiday favorites to nostalgia, LG’s customers will soon have even more ways to interact with the Redbox brand alongside our streaming app.”

Redbox, known for its in-story DVD rental kiosks has been pivoting to streaming, setting up free channels and, soon, subscription channels.

LG Channels is LG's free streaming service, providing users with a wide selection of premium live and on-demand programming, including movies, TV shows, news, sports, kids, and more. LG Channels and a channel guide are available on 2016 TVs and newer and in 14 countries. ■

Redbox, which is trying to expand an ad-supported video streaming business into American homes, found another way to make money with its legacy disc-rental kiosks.

Redbox has announced a partnership with outdoor signage company Velocity to install video signage on around 4,000 Redbox rental kiosks nationwide. Redbox's network has about 40,000 rental kiosks, and the company said it's deployed around 2,000 video signs so far. 

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

“The addition of Velocity screens gives us a powerful new way to promote new release titles with our content partners including all major Hollywood studios, as well as provide brands and studios a uniquely customizable out of home campaign, while also promoting our free streaming service and Redbox Entertainment originals in high trafficked locations,” said Galen Smith, CEO of Redbox. “We’ve already seen success with the screens we’ve tested to date, and we’re excited to see this quickly scale and potentially grow to additional kiosks in the future.”

Redbox went public again on Oct. 25 with the help of a special purpose acquisition company. Redbox is trading at around $10.37 a share after reaching a high of $17.93 on the Nasdaq back on Nov. 4. 

Fresh off its successful IPO, Redbox continues to shop for content. 

The ad-supported streaming company's latest deals mark its first ever major studio acquisitions for its AVOD platform, with select titles from WarnerMedia and Sony Pictures being added to Redbox Free On Demand. 

Sony Pictures titles available for free on-demand viewing include Resident Evil: Retribution, Underworld: Evolution, We Own the Night, and Universal Soldier: Day of Reckoning.

Meanwhile, the agreement with WarnerMedia will add titles on a monthly basis, starting with The Astronaut’s Wife, Collateral Damage and The Long Kiss Goodnight, among others. 

Additional Warner Bros. titles coming to Redbox’s free streaming service include Transcendence, Arthur, Contact, No Reservations, The Upside of Anger, City By The Sea, Ready to Rumble, City of Angels, Pleasantville, The Postman, Boogie Nights, Forever Young, Doc Hollywood, JFK, Joe Versus the Volcano, and Tango & Cash.

“WarnerMedia and Sony Pictures both have amazing film catalogs which our audience will enjoy for hours on end, and they will be completely free,” said Galen Smith, CEO of Redbox. “We look forward to growing the number of films offered through our AVOD streaming service from both studios in the coming months.”

Last month, Redbox entered into an agreement with Lionsgate, in which Redbox added the so-called "mini-major" studio's select archival titles to its AVOD library, while Lionsgate theatrically distributes Redbox original movies. 

Prior to that deal, the Redbox AVOD library was largely comprised of independent and foreign-produced acquisitions. 

Redbox operates a transactional VOD business, along with separate free-to-watch AVOD and FAST components, which all reside within the same Redbox app consumers use to manage their physical Redbox kiosk interactions. Redbox is betting that its marketing list of over 40 million kiosk users is full of streaming late-adopters who will be willing to go OTT for the right price (aka free). 

As mentioned, Redbox is coming off a successful SPAC-based initial public offering, with the stock up nearly 32% since its Oct. 25 debut on the Nasdaq. 

Redbox said it signed a deal with WarnerMedia that will bring a group of movies to Redbox’s ad-supported streaming service.

Redbox also said it will also add titles from Sony Pictures to its AVOD streaming service.

Also: Expanding Redbox Adds Three Free Streaming Channels From Fremantle

“WarnerMedia and Sony Pictures both have amazing film catalogs which our audience will enjoy for hours on end, and they will be completely free,” Redbox CEO Galen Smith said. “We look forward to growing the number of films offered through our AVOD streaming service from both studios in the coming months.”

The WarnerMedia movies start with titles including The Astronaut’s Wife, Collateral Damage and The Long Kiss Goodnight. In future months, Redbox will be able to stream films such as Transcendence, Arthur, Contact, No Reservations, The Upside of Anger, City By The Sea, Ready to Rumble, City of Angels, Pleasantville, The Postman, Boogie Nights, Forever Young, Doc Hollywood, JFK, Joe Versus the Volcano and Tango & Cash.

Sony films coming to Redbox include Resident Evil: Retribution, Underworld: Evolution, We Own the Night and Universal Soldier: Day of Reckoning.

Expanding its burgeoning streaming business Redbox has made a deal with Fremantle that will add three free ad-supported channels to its lineup.

Buzzr, The Price Is Right: The Barker Era and the Baywatch channel will start streaming Dec. 1 via Redbox, which now offers more than 120 channels.

Connected TV and free ad-supported streaming television is a growing business and both Redbox and Fremantle intend to cash in.

Redbox, known for its DVD-rental kiosks, has pushed into streaming. It has 5,000 titles for ad supported video-on-demand in addition to a roster of channels that Chris Yates, general manager of Redbox on Demand told Broadcasting+Cable will continue to grow. “We’ll keep expanding. Not indefinitely, but judiciously, with top-tier partners like Fremantle.”

Also: Redbox Completes SPAC IPO, Starts Trading on the Nasdaq Monday

“We have nearly 40 million people who use Redbox every year,” Yates said. “This kind of content is their sweet spot and we’ll be leaning in really heavily to market these channels to our audience.” Redbox will market the channels via email and other touch points, including through the kiosks over time, he said.

Redbox also plans to get into the subscription video on demand channel business, starting with Curiosity Stream.

Fremantle will program and curate the three new free channels. Redbox will oversee monetization of the channels. The two companies have a revenue sharing arrangement.

“Their success is our success and that’s how we like to work with our partners,” said Mark Deetjen, executive VP of global channels at Fremantle. 

Buzzr started as a digital over-the-air channel featuring classic games shows including Match Game, Family Feud, To Tell the Truth, Password and Card Sharks. Redbox will be streaming a mirror image of the over-the-air channel, Deetjen said. 

There is a Price Is Right The Barker Channel that has been streaming exclusively on ViacomCBS’s Pluto TV. That exclusivity runs out Dec. 1, when it will  start on Redbox also. The channel features episodes going back to the ’80s, featuring classic minigames that have been retired from the current version of the show. The channel will also have quarterly stunts featuring people hitting the $1 while spinning the big wheel on the Showcase Showdown or holiday-themed episodes.

Fremantle has Baywatch channels on a number of streaming platforms including, Samsung and Vizio.

“This is a channel that Fremantle is running ourselves, rather than just licensing content to the platform and allowing them to string episodes together as they see fit,” Deetjen said. Fremantle has created promos, interstitials and other extras for Redbox that other Baywatch channels don’t have.

“We’re using those classic TV programming techniques to prolong engagement,” he said. “They make a channel feel like a channel.”

Redbox is happy to have Fremantle curate the channel,” Yates said.

“Fremantle knows its content, its programming better than anyone. We wouldn’t want to get in the way of that,” Yates said. These are the first channels from Fremantle on Redbox. “Hopefully the first of many,” he said.

Redbox last week announced that it had retained Whistle Group’s Palomino Media Group for direct ad sales. “We’re confident monetization is going to be really successful for these channels.

For Fremantle, streaming represents a growth area. Buzzr has been available over the year for about seven years, but since it started streaming, its reach has grown by over 50%. 

“We are reaching an enormous number of people via this platforms and it just keeps growing,” Deejen said.

“We’re in the early stages of the FAST era,” Deetjen said, noting the success companies including Redbox have been having.

“There will be a point of diminishing returns,” he said. “There will be a point at which there will be platforms that can’t be sustained from a revenue perspective. We wouldn’t have done a deal with Redbox if we thought that they were one of them.”

Redbox’s shift from DVD kiosk to streaming app is interesting for many reasons, but particularly because it represents an attempt to bring a very different yet crucial audience to streaming: mainstream Middle America.

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

This was one of the points Redbox CEO Galen Smith touched on in a conversation we had following his company's merger with Seaport Global Acquisitions, which enabled them to become a publicly traded company. (Smith had actually just rung the NASDAQ bell a few hours before we spoke.)

Also read: Redbox Hires Team Whistle’s Palomino For Streaming Ad Sales

As I’ve been noting since the dawn of the streaming wars, one of the key hurdles the industry needs to get past is the notion that streaming is just for the educated coastal upper middle classes. 

This was, mind you, a very wise path to take in the early days of streaming when the audience was in fact largely composed of members of that demographic. It was why Netflix chose to bid on House of Cards, a show that HBO had also been bidding on and why so much of the hit programming from the early (and middle) days of streaming was largely “HBO-like” in nature.

This also made more sense when there were just three major streaming services. But now, there are nine of them, and that HBO audience just isn’t big enough to keep all nine afloat.

Smith and Redbox have already begun making use the data they’ve collected from all those thousands of DVD kiosks to identify the type of programming and the actors who appeal to a more middle class/middle American audience, creating original programming under the Redbox name. 

It’s a smart move, as that audience is one the industry has a tendency to pretend does not exist, despite the fact that they desperately need that audience if streaming is going to become the dominant method by which Americans watch TV.

The industry’s tendency to dismiss people who do not resemble the people they know is not recent. Back in the nineties, Home Improvement and Roseanne were huge hits on ABC. But the trade press and mainstream media (not to mention the awards shows) were focused tightly on the NBC “Must See TV” line-up of Seinfeld, Friends and Mad About You, shows that appealed to the educated coastal upper middle classes. 

That focus was so intense that younger viewers might be forgiven for not realizing that there were other popular shows on TV back in the 90s and why the decision to revive Roseanne (albeit briefly) back in 2018, brought forth a series of articles debating the two shows blue collar credentials. 

Now to be clear, Smith’s goal is not to create a working class hero a la Roseanne Barr, but rather to assemble an AVOD library and FAST channels, and create original content that appeals to the sort of audience that isn’t quite sold on dark brooding antiheroes and sitcoms that aren’t “ha-ha!” funny.

Rather, he’s looking to create a service that appeals to a consumer who is, as he notes, “value conscious” e.g, would much rather watch a few ads than have to pay for yet another streaming service. 

And if they do want to pay for a streaming service, Smith is there for them, too. 

He’s looking to create a way for Redbox viewers to sign up for the various Flixes via Redbox, which would mean they got one single bill and one single location to manage their subscriptions.

Smith is aware that this is what got Roku and Amazon into hot water with HBO Max and Peacock, but feels the fact that Redbox is a free app rather than a piece of hardware gives him a very different play than Roku and Amazon, especially when it comes to collecting and tracking data.

“For us it really is helping them reach this untapped customer,” he said. “I think it is a little harder for these services to reach these consumers and so as they think about how do we continue to hit the subscriber numbers that we've put out to the street. I think we can be a key element helping to deliver those numbers.”

This is an excellent point, and If the various Flixes are wise, they’ll take him up on it. “Red State Box'' jokes aside, Redbox is apolitical and purely about entertainment and the joys of kicking back and watching something enjoyable. If they can connect with an audience that is traditionally skeptical of change and generally content with the state of linear TV circa 2021, and bring them over to the streaming side, that’s not nothing.

That’s millions of people, more likely tens of millions, and they’re all going to want to watch the types of shows they think are “good” on streaming.

Where fortunately, time is no longer the constraint it once was, and dark brooding antiheroes can live on the same platform as action movies, reality TV shows and sitcoms with good old-fashioned laugh tracks.

Redbox said it has hired Team Whistle’s Palomino Media Group to handle direct sales for Redbox’s ad supported streaming video-on-demand and free ad-supported streaming television channels.

“Palomino Group is one of the best direct sales organizations in the streaming business and we’re thrilled to be working with them to sell our inventory,” said Jason Kwong, chief strategy and digital officer, Redbox. “As we work to rapidly grow our free streaming business, having a partner like Palomino will help us grow even faster.”

Redbox now has 120 streaming channels on its platform. It also recently announced AVOD content deal with Lionsgate and now offers more than 5,000 movies and TV shows to consumers.

Also: Redbox Using FreeWheel Technology To Build Streaming Ad Business

“We have a long history selling inventory for streaming platforms” said Kyle Young, executive VP of solutions at Team Whistle. “We are excited to partner with Redbox in their efforts to scale revenue growth on their streaming platform and deliver a best-in-class experience for Redbox’s advertiser partners.”

Redbox Entertainment has completed its merger with special purpose acquisition company (SPAC) Seaport Global Acquisition Corp. and will begin trading on the Nasdaq Monday under the ticker symbol "RDBX."

Incubated originally by McDonald's, Redbox--which bills itself as "America's destination for affordable new-release movies and entertainment"--has operated a popular network of DVD rental kiosks for a variety of owners, both public and private. 

Now under the stewardship of Galen Smith--who had been CFO of the kiosk company's last owner, Bellevue, Washington-based Outerwall--Redbox sees an opportunity to transition a marketing list of over 40 million kiosk users, assumed to late adopters to the streaming game, into a unified app-based OTT business combining, TVOD, AVOD and FAST components, along with a movie production studio. 

Think of the Amazon Prime Video rollup, sans the SVOD component, and all the benefits and regulatory baggage that comes with the associated e-commerce empire, and you approach the diversified video business Redbox is trying to establish for the Average Middle American Consumer.

“Today marks the beginning of Redbox’s next chapter,” Smith said in a statement. “Since revolutionizing the way Americans rent movies nearly two decades ago, Redbox has continuously evolved and expanded our reach--all while offering our millions of loyal customers exceptional value in home entertainment. Today, we are building on our legacy and reaffirming our commitment to delivering a wide range of choice and convenience for consumers, as well as value for our Redbox stakeholders.

“As a public company, we plan to continue our strong momentum and accelerate our digital transformation," Smith added. "Through this transaction, and the incremental capital it provides, Redbox is equipped to advance our goal of creating a one stop experience that spans multiple entertainment mediums and simplifies the streaming experience. We are eager to capture the significant and growing opportunities ahead, take our business to the next level and achieve profitable growth for Redbox shareholders.”  

Announcing a new deal almost every day as it approaches its IPO via SPAC and aggressive transition from DVD rental kiosks into streaming media company, Redbox Entertainment announced the acquisition of 20 live-streamed channels for its FAST service, Redbox Free Live TV. 

The acquisition is highlighted by the addition of 10 Cox Media Group local news channels, covering markets including Boston, Seattle, Atlanta, Memphis and Orlando. 

Also read: Redbox to Promote Curiosity, Include Select SVOD Content on AVOD and FAST Channels

Redbox also announced that it had also signed a deal with Yahoo! to bring a business news channel to its free-to-consumer streaming service. 

“This is the largest increase of new, free streaming channels in Redbox’s history,” said Chris Yates, general manager of Redbox On Demand, in a statement. “From local news to some of the best kids shows, there is even more programming for everyone to enjoy. We’re excited to see these channels go live soon.”

Here are the channels being added to Redbox Free Live TV (loglines provided by Redbox):

> Alter – Alter is a horror brand for novel and grounded stories exploring the human condition through warped perspectives. Since its inception, Alter released; the two-part horror series “50 States of Fright”, starring Rachel Brosnahan (The Marvelous Mrs. Maisel), Travis Fimmel (Vikings) and Christina Ricci (Z: The Beginning of Everything) and Executive Produced by Sam Raimi (Evil Dead) which was acquired by Amblin Partners to develop into a feature film. Other titles include the SXSW 2020-nominated short film, Stucco, co-directed and co-written by Janina Gavankar (The Morning Show) and Inferno, an ALTER original short film from award-winning director, Bishal Dutta.

> America’s Funniest Home Videos – America’s Funniest Home Videos features free and hilarious home video and viral video moments you love from AFV. Watch the funny videos any time - including funny kids, family pranks, fail videos, funny pet videos, silly babies and more.

> Baby Shark – It's Doo-Doo-Doo Time to dance to BABY SHARK!

The channel is designed to suit a child’s 24-hour daily routine from waking up in the morning to going to school, learning, taking a nap, and going to sleep.

> Cine Romantico – Cine Romántico is the first U.S. Spanish-language free ad-supported streaming movie channel dedicated entirely to romance movies. Cine Romántico warms the heart with stories full of love, joy, emotion, and laughter. Escape to romance with the best in Hollywood TV movies all in Spanish. With a vast array of star-driven movies featuring contemporary storylines, some of the titles on the service include Brimming with Love, Love Throws a Curve, Hopeless Romantic, Groomzilla, Instant Nanny and The Wedding Do-Over.

> CMG Local News Stations – Viewers will be able to catch up on the latest local and breaking news from CMG’s award-winning television stations across the country – regardless of where they live. CMG-owned stations include WHIO (Dayton), WJAX (Jacksonville), WSB (Atlanta), WSOC (Charlotte), WPXI (Pittsburgh), WFTV (Orlando), KIRO (Seattle), KOKI (Tulsa), WHBQ (Memphis) and WFXT (Boston).

> Electric Now – Electric Entertainment presents, Electric NOW, the one-stop shop for fans to enjoy all their favorite shows for free with commercials. Featuring a wide variety of "genre" entertainment, including fan-favorite TV series and movies like Leverage, The Librarians, The Outpost, and Almost Paradis. ElectricNOW allows anyone to stream premium content, or enjoy a 24/7 broadcast with exclusive marathon events.

> Happy Kids – HappyKids is a free and safe channel that entertains & educates kids of all age groups. Watch Popular shows, Music, Stories, Movies, Vlogs - segmented both by age group & interest. HappyKids is awarded with the Kidsafe+ COPPA certified seal.

> Red Green Show – The Red Green Show follows the hapless handyman Red Green, his nerdy nephew Harold, and a colorful cast of characters as they film a do-it-yourself TV show. Standing on a foundation of popular recurring bits, the classic sitcom-sketch comedy hybrid ran on Canadian television for 15 years racking up 23 Gemini nominations.

> Sony Canal Novelas, Sony Canal Competencias, Sony Canal Comedias – Sony Pictures Television’s (SPT) free ad-supported streaming TV (FAST) destination for U.S. Hispanic audiences, Sony Canal is a portfolio comprised of three Spanish-language FAST channels, featuring an original production slate from SPT’s International Production library that audiences have come to love. Targeting the rapidly growing US Hispanic community, the channels showcase distinctive content in three genres: telenovelas, competition series/game shows and comedies.

     > Sony Canal Novelas is dedicated to the world’s most popular classic telenovelas and modern serial dramas like Zorro: La Espada y la Rosa, El Mariachi and more. Thrills, passion, plot twists and heartwarming stories make these compelling series must-see. 

     > Sony Canal Competencias is dedicated to the most exciting reality competition shows from Latin America like Escape Perfecto, the Mexican adaptation of the hit SPT format Raid the Cage, which keep viewers on the edges of their seats as contestants face their challenges.  

     > Sony Canal Comedias bring you culturally relevant modern remakes from Latin America that will keep audiences laughing, featuring TV’s most iconic sitcoms and comedy series like Married with Children, The Nanny and more.

     > Everything 80s – Relive the decade of perms and shoulder pads! The unmistakable synth-pop sound is bound to remind viewers of all their greatest ‘80s memories.

> Tastemade en Espanol – Tastemade en Espanol is a Spanish language streaming network with more than 175 hours of programming. It offers a diverse library of food, travel, and home & design content with Tastemade originals and series in English with Spanish subtitles.

> Wu Tang Collection - Wu Tang Collection TV is the world’s largest and best curated martial arts channel! It features hundreds of rare and exciting kung fu films going all the back to the 1970s picked by experts for audience’s viewing enjoyment.

> Yahoo! Finance – Yahoo Finance is the leading source of business and financial news focused on providing trusted information with diverse perspectives for all ages and backgrounds.  Yahoo Finance’s content and tools help consumers break down the markets, provide insight on their personal finances and help them make informed investment decisions for today and their future.

Fast-moving Redbox has entered into yet another partnership, announcing a deal to promote Curiosity's subscription streaming service, and use some of the media company's  non-ficiton content on its AVOD and FAST channels. 

Curiosity's SVOD platform, Curiosity Stream, will be marketed as a premium subscription addition within the Redbox app, which starting in 2022, will offer Amazon Channels-like access to select subscription streaming services, alongside FAST service Redbox Free Live TV, AVOD platform Redbox On Demand and the Redbox transactional video-on-demand service. 

Also read - Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

Redbox said "select" customers will be offered a promotional trial for Curiosity Stream. 

Meanwhile, content from Curiosity Stream will surface on Redbox's free ad-supported streaming channels "in the coming months." 

The Curiosity deal follows a pact announced Thursday between Redbox and Lionsgate, in which the kiosk giant will distribute its movies through the Canadian mini-major studio, while also adding select Lionsgate titles to its FAST and AVOD libraries. 

Redbox is midst of an aggressive transition into video streaming, attempting to parlay a customer list of around 40 million DVD rental kiosk users into dedicated video streamers. 

Redbox is currently setting up an IPO through a special purpose acquisition company, the proceeds of which will underwrite this transition, the company said. 

As for Curiosity, it recently rebranded its company moniker from "CuriosityStream." The SVOD service it operates is now called Curiosity Stream (two words and no longer mid-capped).

Redbox, making the transition to streaming from its kiosk-based DVD rental business, said it reached an agreement to distribute Curiosity Inc factual content on Redbox’s ad supported VOD and free ad supported streaming services.

Redbox said it also agreed to promote Curiosity’s subscription streaming service, Curiosity Stream, and that Curiosity Stream will be offered when Redbox launches SVOD channels in its streaming app in 2022. 

Also Read: Redbox Using FreeWheel Technology To Build Streaming Ad Business

“Our customers will appreciate the high-quality content delivered by Curiosity Stream and we’re excited to work with them to grow their viewership through distribution of their service on the Redbox app,” said Jason Kwong, chief strategy and digital officer, Redbox.

Also Read: Curiosity Strikes Carriage Deal With FuboTV

“We are thrilled to partner with Redbox as they continue to expand their video streaming offerings,” said Brandon Fong, senior VP of partnerships and distribution for Curiosity. “As the leading factual entertainment service, Curiosity is ideally positioned to deliver affordable, high value entertainment to Redbox customers who want to know more about the world around them.”

Redbox Entertainment has announced an agreement with Lionsgate--yes, a strategic one--to have the Vancouver-based "mini-major" studio distribute its original movies. 

Redbox will also license movies and TV shows for its AVOD and FAST platforms. 

Redbox, which is currently in the process of raising capital through a SPAC-based initial public offering on Wall Street, aims to beef up its programming libraries with original titles that are amortized on the open global market before they reach Redbox On Demand and Redbox Free Live TV. 

The Lionsgate agreement is probably Redbox's biggest yet in terms of underpinning the original movie portion of a business model that's based on transitioning around 40 million "late adopter" DVD rental kiosk customers into regular users of TVOD, AVOD and FAST services. 

Recently released Redbox Entertainment films includes biopic Capone starring Tom Hardy;  World War II thriller Shadow in the Cloud starring Chloë Grace Moretz and Nick Robinson; and Euro train heist drama SAS: Red Notice, featuring  Sam Heughan and Ruby Rose. 

“Redbox has a large slate of films coming in 2022 and beyond, and we’re excited to work with Lionsgate to identify those that are a great fit for their distribution model,” said Galen Smith, CEO of Redbox. “[Lionsgate President of Worldwide Distribution, Motion Picture Group] Ron Schwartz and his team have been terrific partners over the years, and we are excited to extend our relationship to tap into their world class distribution prowess to create value for both companies.” 

Added Schwartz: “Lionsgate’s longstanding partnership with Redbox has created significant value for both our companies. That collaboration has evolved into a multifaceted distribution relationship across home entertainment, SVOD and AVOD platforms that allows us to continue to diversify our content offering to our consumers.”

Finding little ways to get into the news cycle every day as it completes a SPAC-led IPO, Redbox announced Thursday that its fast-emerging streaming app is now supported by PlayStation 5, and soon, Sony's legacy PlayStation 4 video game console, as well.

Every platform counts for the Redbox app, as the company is planning an aggressive but late push into the ad-supported side of the Streaming Wars. Redbox's business plan is to serve “late-adopter” streaming consumers, many of whom are already signed up to the ranks of Redbox's 40 million-plus kiosk users.

Of course, if you‘re trying to appeal to consumers who may not be super-comfortable around IP technology — even basic stuff like streaming sticks and smart TVs — you probably don't want to complicate things further by not having your app supported by major platforms. 

Perusing Redbox‘s list of support OTT platforms reveals compatibility with Roku, Android TV, Chromecast and Apple TV, as well as Vizio, Samsung and LG on the proprietary smart TV OS side, and Xbox gaming consoles. 

Two weeks ago, Redbox announced support on Vewd-powered devices and smart TVs. 

There's support for iOS and Android mobile devices, too. 

Still pending, however: Support on one of the biggest platforms of all, Amazon Fire TV.

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

“We have so much great content to discover, and we’re constantly adding more films and TV shows, as well as free TV channels. I know PlayStation 5 users will find something to enjoy on Redbox, which will soon be available on PlayStation 4 as well,” said Chris Yates, general manager of Redbox On Demand.

Redbox said it is working with Comcast’s ad tech company FreeWheel to bring advanced advertising to Redbox’s ad supported VOD platform and its free ad supported television networks.

The deal enables Redbox to sell commercials programmatically and lets advertisers access ad inventory and target specific audiences.

Also Read: Comcast, Charter Piloting New FreeWheel Addressable Cross-Platform Technology

"Redbox selected FreeWheel for a number of reasons, including its unique industry approach to programmatic technology," said Jason Kwong, chief strategy and digital officer, Redbox. "As we continue to ramp efforts in the free streaming space, we knew FreeWheel would accelerate our advertising capabilities and allow advertisers to easily micro-target viewers across all our streaming platforms. We're excited to partner with them and to further grow our business."

FreeWheel already provides ad tech to most cable networks and has been branching into digital media and streaming.

Also Read: Redbox Teams With Roku To Promote Streaming Players at Walmart

“Redbox has put a lot of focus on their growing advertising business, and with that comes the need to monetize their vast amount of inventory,” said Dave Clark, GM, FreeWheel. “We are thrilled to be working with the team at Redbox to scale their national advertising footprint across local markets, as well as facilitating unique local demand in ways that work best for their business. As FreeWheel continues to expand our focus and enable better connection across the ecosystem, Redbox is an ideal partner.”

Redbox, looking to become a bigger player in streaming, is being promoted on specially marked boxes containing Roku players sold exclusively at Walmart stores.

People who purchase the streaming devices will be able to get a $5 credit toward movie rentals when they download the Redbox app via their Roku player.

Redbox’s DVD rental kiosks are familiar features of many Walmart stories. Now Redbox is promoting its streaming service to Walmart shoppers and Roku users.

Also Read: Redbox Adds War and Westerns, Rewind to Roster of Free Streaming Channels

“Roku has been a great partner on this unique promotion, which gives us the ability to attract a large new audience to our streaming app,” said Galen Smith, CEO, Redbox. “We’ve been rapidly expanding our free streaming services, and I know consumers will find a lot of great content to enjoy.”

Redbox has been expanding its digital business since being acquired by Apollo Global Management in 2017. The company is in the process of going public through a Special Purpose Acquisition Company, with Apollo remaining a major shareholder.

Also Read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

The transition started with a transactional video-on-demand service, then began adding Redbox Originals in 2019.

In February 2020, Redbox Free Live TV launched. It has about 100 linear channels, including three with the Redbox brand, generating more than a million monthly active users. Redbox launched its free on demand service in December.

Roku started carrying the Redbox app in December 2017. Redbox’s free streaming television channels went live on The Roku Channel in June 2020.

The Roku promotion is designed to help consumers discover Redbox’s free streaming platforms.

Also Read: Redbox Adds to AVOD Library with Oscilloscope Labs Deal

In September, viewers will be able to stream for free Hunter Killer starring Gerard Butler and Gary Oldman, Enders Game starring Harrison Ford and Asa Butterfield, the classic Notre Dame football movie Rudy, hit drama Big Fish starring Ewan McGregor, and 90s teen romantic comedy Can’t Hardly Wait starring Jennifer Love Hewitt.

Redbox Entertainment has further expanded availability of its streaming app, signing a deal to have it natively integrated into the app store of smart TVs and other devices powered by Vewd. 

The Redbox app will now be natively embedded into Vewd-powered smart TVs and set-tops sold in the U.S. Vewd, which was sold to New York-based holding company Moore Frères several years ago and rebranded from "Opera TV," says its OS and app store ships on "almost 40 million connected TVs, set-top boxes, game consoles and cars each year," with OEM partners including Sony, Hisense, Vestel, Vodafone and Swisscom. 

It's unclear as to how many of those are shipped in the U.S. But it's one more piece of niche distribution for the Redbox app, which combines a transactional video service with FAST and AVOD platforms. 

Also read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

Redbox, which in addition to operating its legacy business--a national network of disc-rental kiosks--is also in the process of expanding its film acquisition operation. The company is planning an IPO via special purpose acquisition company (SPAC) and is seeking to build a streaming business based on a base of kiosk users it says numbers around 40 million. 

“Vewd has a powerful platform that is used by millions of customers every day to access their favorite streaming content,” said Jason Kwong, chief strategy and digital offficer for Redbox, in a statement. “Partnering with a company like Vewd gives our consumers another easy way to access our library of both blockbuster new release movies along with a fantastic catalog of free movies and streaming channels.” 

 Redbox said it added two channels to its roster of free, ad-supported streaming choices with Redbox War and Westerns and Redbox Rewind.

The new channels are part of a rapid expansion by Redbox, best known for its videodisc rental kiosks. Redbox now offers more than 100 free streaming channels.

Also Read: Redbox Adds to AVOD Library with Oscilloscope Labs Deal

Linear streaming channels has been popping up like weeds as cord-cutting consumers turn to ad-supported sources because of the escalating cost of subscription video services and the availability of better content on free services.

Also Read: Redbox CEO Galen Smith: Why 40 Million ‘Late-Adopter’ Customers Will ‘Make the Digital Shift With Us’

Redbox intends to syndicate the streaming channels it is creating. its Redbox Movie Channel is now available on The Roku Channel and Vizio WatchFree Plus in addition to the Redbox app.

"Movies from the Rewind and War and Westerns channels have proven enormously popular with our audience," said Chris Yates, general manager, Redbox On Demand. "From epic battles and classic westerns to 80s action hits and romantic comedies from the 90s, we can’t wait for fans of these genres to watch these channels both on Redbox and with our syndication partners.”

Redbox Rewind features movies from the 80s, 90s and and the early 2000s. Films on the channel including Can’t Hardly Wait starring Jennifer Love Hewitt; Rudy, with Sean Astin as a Notre Dame football walk on; and Earth Girls are Easy with Geena Davis and Jeff Goldblum.

Redbox War and Westerns gives viewers a choice of action-packed films such as The Quick and the Dead starring Sharon Stone and Leonardo DiCaprio, The Trench with Roger Craig and the long-running TV series Bonanza.

The Redbox app is available on devices including Samsung, Roku, Vizio, LG, Android TV and X Box.

You might think running 40,000 kiosks that rent physical DVDs, a legacy entertainment business surely on the order of AOL dialup, might drag on a modern media company’s bottom line. 

But Redbox Entertainment CEO Galen Smith doesn’t see it that way, especially as his company layers free and transactional online-video services into the kiosks, which themselves have moved far beyond their vending-machine roots.

Also read: Redbox — Everything You Need to Know About the DVD Kiosk Company's SPAC-Fueled Plan to Migrate 40 Million 'Late Adopters' to the Streaming Age

“It's expanded,” Smith said of the kiosks’ expanding role. “Sure it's absolutely something that allows you to distribute discs, or other content. But we really transformed over the past number of years to make it an advertising machine. Think about it as a digital out-of-home entertainment experience.”

Increasingly, Redbox is leveraging its long-time relationship with 40 million tech-reluctant customers to bolster that collection of ad-supported and transactional video services, drive original programming, and, soon, launch a single-sign-on program for SVOD partners. 

“These, on average, are later adopters of technology,” Smith said. “So they haven't necessarily made that full digital shift yet. If you think about Redbox being an almost 20-year-old business, that becomes really, really powerful, because we're not necessarily competing for the same customers that everyone else is. We've got this unique defined customer base that loves us and is loyal to us. And what we want to do is continue to expand the way that we serve their needs.”

Offering more options, including buying or renting videos online, has actually led to more transactions at the kiosks too, Smith said. Importantly, it’s often the same customers.

“They actually not only started to use it digitally, but they increased their use of physical,” Smith said. “And so it's been a really powerful tool for us to lift all boats.” 

That’s far from the company’s only recent initiative, however. The deals have arrived at a dizzying rate, including four new movie and game-show channels from the Game Show Network, and an expanded agreement with Anthem Sports & Entertainment to carry AXS TV Now and Fight Network. Another recent deal with Kevin Hart’s LOL Network added 100 hours of standup comedy. 

The company also just hired Christina Chu, a veteran of NBCUniversal and WarnerMedia’s FullScreen digital unit, as VP of technology, and signed a slate production deal with Basil Iwanyk (John Wick, Sicario, The Town). That deal’s first feature, Black Site, is due early next year. 

At the same time, Redbox is going public through a special-purpose acquisition corporation, or SPAC. The deal still leaves as majority shareholder Apollo Global Management, which has owned the company since 2017.

Redbox has been expanding its digital reach since Apollo bought in. The Redbox On Demand TVOD service arrived in 2017, and Redbox Originals made its first acquisition in 2019. 

Its FAST service, Redbox Free Live TV, debuted early last year, and now has three branded linear channels, along with about 100 other channels from providers such as Cinedigm, Lionsgate, Jukin Media, Group Nine, and FilmRise. 

Free Live TV compliments AVOD service Redbox Free On Demand, which launched shortly prior. 

“If you think about the history of Redbox, it's really been a new-release movie distributor,” Smith said. “And a transactional video-on-demand business fits that very well. We didn't really know if there was going to be an opportunity to do this; you almost had to get permission from the consumer. But being able to give the consumer choice was incredibly powerful.”

Offering as many options as possible is a way to meet Redbox’s customer base wherever they are, Smith said. 

“If you think about our consumer base, it's right on point,” Smith said. “They're okay watching ads, particularly if it gives them content for free.”

Of note, the company plans to plow some SPAC proceeds into building out the “channels” service, giving customers easy access to SVOD services on top of the free Redbox services. 

“We don't think that today, the world needs a Redbox-branded (SVOD) offering,” said Smith. “But what we do think that we are uniquely positioned to do is offer the streaming options of others through a platform that makes it really, really easy.”

Using a single-sign-on, single-password offering, especially for a tech-reluctant customer base like Redbox’s, could be a big differentiator, Smith said.  Ask Smith if there are too many SVOD services, and he gives a careful response. 

“It's a tricky question,” he said. “I think that there are services that have brand awareness or IP that consumers know and love, and it makes for a really great direct experience. Yeah, they may not need our help. But with the proliferation of direct consumer services that have launched in the past 12 or 18 months, there's a whole other set that need our help to help grow their base. And I think we're really well positioned to be able to help them do that.”

Redbox has “this really big set of consumers that are later adopters of technology and haven't made that full digital shift,” Smith said. “And I can help bring them to you as a subscription service, it becomes a really incredible partnership, because they may not have been able to find you otherwise. And being able to use that kiosk to serve up a free trial when you're grabbing a movie becomes a really powerful tool.”

With 39 million accounts in the company’s loyalty program, it can reward points for customers who try out the TVOD program, or a subscription. The rewards might even include free kiosk credits. 

“So the kiosk is always going to have more recent content than is available on a subscription service,” Smith said. “And so our ability to get the latest new releases that way, and to be able to give a streaming package bundled up together, so you actually get more value there than anywhere else, becomes a really powerful tool.”

Expect the Redbox channels venture to arrive Q2, next year. The SPAC likely will have wrapped by year’s end, regulatory and investor climate permitting. The deal will keep Apollo as majority owner, one of the few things not changing for Redbox, or for its consumers. 

“One of the mistakes that a lot of folks make is they may have a certain preferred way which with which they consume entertainment,” Smith said. “And it may not be exactly what represents everyone. And so there's a lot of customers that are doing other things than what the whole world assumes is happening with digital consumption.”

Fold in the company’s expanding Originals venture, fortified by the data the company has collected about what stars, directors and genres its fans want. But in choosing which projects to back, the company also has ambitions to move beyond its backyard. 

He points to a film Redbox bought last year, Shadow In the Cloud, a WWII-set supernatural thriller starring Chloe Grace Moretz, as an example. 

“What we want to do is offer it everywhere,” Smith said. “So it was available not only on the Redbox On Demand TVOD service, but on iTunes and Amazon and everywhere else. And then we waited and brought it out on the kiosk and lowered the VOD price to a more traditional price point where you'd see that's not premium VOD. And then in May, it went on Hulu, because again, we want to partner with SVOD players, not necessarily compete with them.”

Redbox said it has added Anthem Sports & Entertainment’s AXS TV Now and Fight Network to its free live TV streaming service.

The networks were added under an expanded content agreement between Redbox and Anthem. Redbox previously had Anthem’s Impact Wrestling Channel on its streaming service.

"Anthem Sports & Entertainment has a wealth of great content that is perfect for our Redbox streaming audience,” said Chris Yates, general manager, Redbox On Demand. "We’ve already seen success with the Impact Wrestling Channel, and we know Fight Network and AXS TV Now  will also be well received by our viewers.”

Redbox, well known for its video kiosks has been expanding its ad-supported streaming business. The company is owned by Apollo Global Management and is preparing to go public via a special purpose acquisition company. It has also been adding content. Redbox recently acquired 100 hours of standup and comedy programming from Kevin Hart’s Laugh Out Loud production company.

“Redbox is a true pioneer in the streaming landscape, and Anthem is proud to expand upon our successful partnership with the launch of AXS TV Now and Fight Network on the platform,” said Len Asper, president and CEO of Anthem Sports & Entertainment. “The Impacts Wrestling Channel has been well-received by Redbox users, and we are excited to provide them with even more top-quality content with these two new additions. From classic concerts and iconic bouts, to insightful interviews, unique originals, and everything in-between, our networks offer something for everyone, and we look forward to sharing them all with the Redbox audience.”

Also Read: Christina Chu Joins Redbox as VP of Technology

AXS TV Now is an ad supported entertainment, music and lifestyle streaming service featuring concerts, music features and The Big Interview with Dan Rather.

Fight Network is a 24/7 destination for combat sports coverage, with more than 300 hours of live fights from promoters around the world.

Redbox, looking to expand its streaming business, said it hired Christina Chu as VP of technology. 

Chu, previously senior VP for engineering at Fullscreen Media, will lead a team developing technology and product improvements for the company’s kiosk business as well as its streaming platform.

"Christina brings expansive end-to-end engineering expertise and domain knowledge in media and streaming platforms which will have an immediate impact," said Stephen Lavin, chief technology officer at Redbox. "I know she will create and execute product and technology enhancements with the Redbox team that will make the viewing experience on our apps even more enjoyable." 

At Fullscreen Media, Chu led efforts to launch the company's first SVOD product. She also developed feature enhancements to the SVOD platform. Before that, Chu spent more than a decade at NBCUniversal, where she transformed a legacy broadcast and supply chain into a digital‐based platform as VP of media technology.

Already one of the more prolific programming forces in video streaming, comedian Kevin Hart is now taking his act to Redbox, the DVD rental kiosk company currently in the processes of trying to transform itself into an AVOD powerhouse. 

Redbox has acquired 100 hours of standup specials and other funny (ostensibly!) funny shows from Hart's Laugh Out Loud (LOL) production shingle. The titles will be available on the Redbox app via the LOL! Network. 

The lineup of comedy series, stand-up specials and television shows from LOL will include All-Star Comedy Jam: I'm Still Laughing, All-Star Comedy Jam: Orlando, Gary Own: True Story, Kevin Hart: What Now? All Access, DeRay Davis: Power Play, Shaq and Cedric the Entertainer Present All-Star Comedy Jam, and more. 

Hart's series for now defunct mobile streaming service Quibi, a sendup of action movies called Die Hart, has been one of the most popular in a batch of shows acquired by Roku for the Roku Channel. Roku has renewed the series for a second season, rechristening the show as Die Harter. 

In January, Hart signed a deal with Netflix, making the top subscription streaming service the home for his lucrative feature film career. 

Redbox, meanwhile, expects to take its business public this year via a special purpose acquisition company (SPAC) IPO. The company hopes to transition its nearly 40 million kiosk customers into regular video streamers. 

 “Kevin has created a media powerhouse and we’re excited to add Laugh Out Loud’s amazing and hilarious content to Redbox On Demand," said Chris Yates, General Manager, Redbox On Demand.

Added Laugh Out Loud CEO, Jeff Clanagan: "Our goal at Laugh Out Loud has always been to be where the audience is. We are comedy in color wherever, and whenever, our audience wants or needs a laugh. Redbox has been a dominant force in home entertainment for years, and we’re excited to partner with Redbox to bring our catalog of original series, stand up specials, and movies to millions of households throughout the country.”

The Redbox app is now supported by Samsung smart TVs, giving the erstwhile kiosk company with ambitious yet nascent free streaming goals a key distribution foothold with the No. 1 smart TV brand in North America. 

The Redbox app is home to live-linear streaming service Redbox Free Live TV and AVOD platform Redbox On Demand. The app also has a rental/sale component, as well as a feature that lets users check availability and reserve titles at nearby Redbox DVD/Blu-ray kiosks.

Redbox, which has a kiosk user base of around 40 million U.S. consumers, is about to go public via SPAC and has plans to transition its customers--which it has identfied as late adopters--into ad-supported video streamers. 

The Redbox app already had support on most of the other major connected TV platforms--notably, Roku, Amazon Fire TV, Android TV and LG webOS. The Samsung deal makes the Redbox app playable on the Korean CE company's smart TVs made after 2016. 

"Customers turn to Redbox for great entertainment, and we're laser-focused on delivering the widest choice in entertainment on the platforms and devices they watch," said Chris Yates, general manager, Redbox On Demand. "Samsung has been a tremendous partner of Redbox since we launched our digital services, and we're thrilled we can bring our growing catalog of free content to Samsung Smart TV owners."

Continuing work on its SPAC IPO-fueled transformation into a multi-platform streaming video company, Redbox announced an output deal with Luke Cage producer Charles Murray’s Command Films, calling for Redbox Entertainment to distribute six Command titles over the next three years. 

Recently founded by Murray and veteran film executive Marc Danon, Command specializes in creating movies and TV shows that applying “black voices and experiences within commercial genres.”

“Redbox reaches diverse and vibrant communities across America, and our commitment to improving systemic inequalities through representation provides the ideal platform to elevate underrepresented voices and the art they create,” said Galen Smith, CEO of Redbox, in a statement. “When Marc introduced the plan he and Charles put forth with Command, I knew the partnership would provide an opportunity to develop films that entertain and inspire audiences while giving them ways to connect through stories that move them.”

Redbox, an 18-year-old company known for its DVD rental kiosks, is planning an initial public offering in the third quarter, structured around a special purpose acquisition company (SPAC). The company hopes to transition its user base of around 40 million price-conscious consumers who it says are late adopters to video streaming.

Redbox hopes to make these customers loyal users of its linear FAST and AVOD programming, as well as its online transactional service. 

Underpinning these hopes, the company is investing in Redbox Entertainment, which acquires movies for distribution through the entire window chain, including theatrical and PVOD release. 

Redbox has hired former Amazon and Tubi executive Peter Binazeski as head of public relations.

The hiring of the veteran streaming PR executive comes as Redbox embarks on a bold initiative to go public via special purpose acquisition company and attempt to transition around 40 million loyal DVD/Blu-ray kiosk rental customers into regular AVOD, FAST and TVOD denizens. 

Also read: Redbox: Everything You Need to Know About the DVD Kiosk Company's SPAC-Fueled Plan to Migrate 40 Million 'Late Adopters' to the Streaming Age

"I’m delighted that Peter is joining us to lead communications for Redbox,” said Redbox CEO Galen Smith, in a statement. “He brings many years of entertainment and corporate communications experience, which will be invaluable as we rapidly accelerate our growth.”

A former Warner Bros. Digital Distribution executive, Binazeski joined Amazon in 2013, right as it launched its Amazon Prime Video subscription VOD brand into scripted originals with seminal comedy efforts Alpha House and Betas. 

He later transitioned to AVOD powerhouse Tubi, right before Fox acquired it and turned it into the lynchpin for its ad-supported streaming efforts. 

After a brutal 2020, in which a pandemic slowdown in the major studio movie release pipeline further eroded its 18-year-old DVD and Blu-ray kiosk rental business, Redbox is pitching investors on an ambitious plan to transition its still-loyal base of around 40 million customers into a vital, multi-platform niche within the competitive OTT business. 

Outlining its strategy in a virtual July 14 meeting, Redbox provided further details on its initial public offering through a special purpose acquisition company (SPAC), Seaport Global Acquisition Corp., which will value Redbox at around $693 million and leave the company with around $209 million in cash when the deal closes later in the third quarter. 

Private equity firm Apollo Global Management, which purchased the DVD rental business from Outerwall in 2016 and took it private, will roll 100% of its Redbox equity into the IPO, receiving 59% of shares of the publicly traded RDBX on the Nasdaq on a pro forma basis. 

Selling the deal at Wednesday's meeting with equity analysts was Redbox CEO Galen Smith, who transitioned into the lead exec role after serving as chief financial officer of Outerwall during the 2016 Apollo purchase of the company. 

You'd think that a physical media-based kiosk business, already in decline when the pandemic sent revenue tumbling 34% in 2020 to $546 million, might not have much of a narrative. But the SPAC route releases Redbox from some of the liability associated with forward-looking statements, which gives Smith and his management team a little room to dream. 

They believe they can double Redbox revenue to more than $1.1 billion by 2023, competing with the likes of Amazon and Roku, and building on an established brand and customer base--advantages that much-better-funded "streaming wars" startups like Quibi lacked. 

And sure, a user base of around 40 million doesn't equate to the 200 million-plus subscriber scale of Netflix, or the 100 million-plus scale of Disney Plus. But it's in the same streaming customer ballpark as ViacomCBS and the newly minted Warner Bros. Discovery. 

So why not?

"We also have from our 18-plus-year history this incredibly deep set of customer data," Smith told equity analysts. "We know what our consumers love to watch. We know what actors they love. We know where they shop. We know when they shop. We know a lot about our consumers, and how they interact both at retail, as well as with our various services. And that gives us an opportunity to provide this incredibly customized and personalized experience to them."

Redbox still operates around 40,000 disc-rental kiosks across the outlets of nearly 150 U.S. retail partners. It over-indexes in lower population density markets with lower costs of living (see the graphic from the company presentation below).

It's an impressive brick-and-mortar footprint, bigger in sheer U.S. outlet numbers than McDonalds and Starbucks combined. 

Notably, 71% of the Redbox kiosk customer base of around 40 million users describes itself as "bargain hunters," willing to drive down the street to rent a disc for $2 vs. paying six bucks for the same movie on a digital transactional service. 

A bulk of Redbox kiosks are located in chains including Walmart, Dollar General and Dollar Tree. These are customers who think more than twice about paying $14.99 a month for Netflix or HBO Max. 

Redbox's loyalty program touts 39 million members, who trade all sorts of personal data for discounts at kiosks. Redbox also touts an email roster of around 46 million potential digital customers.

Also notable: 70% of regular Redbox customers can be described as "late adopters."

"While it seems like Netflix might be ubiquitous, and everybody is streaming, the reality is that not everybody has made that full shift to digital," said Jason Kwong, the former WarnerMedia, Netflix and FullScreen executive who serves as chief strategy and digital officer for Redbox. "Now some folks are subscribing to Netflix, but not everybody has really cut the cord and fully moved over. Especially as it relates to the late adopters, which gives again, Redbox that opportunity, because that's the customer that we address."

Redbox is already in the streaming business.

The company says the Redbox app has been downloaded 43 million times, achieving an impressive 4.8 user rating from Apple App Store customers. 

In the living room, the Redbox app is supported by Roku, Android TV, Xbox game consoles, as well as Samsung, LG and Vizio native smart TV operating systems. It's also supported by iOS and Android in the mobile device world. PlayStation support is coming. About the only notable place you can't get the Redbox app is on Amazon Fire TV.

The app started simply as a mechanism for customers to find and reserve the physical discs they seek at the closest available kiosks. But Redbox has been adding components to the app over time. 

Three years ago, Redbox added a transactional video-on-demand option for its movie renters, allowing them to spend around $5.99 for the convenience of not having to drive, ride or walk to a kiosk. "TVOD" revenue grew to around $35 million in 2020, offsetting some of the blood loss for the kiosk biz.

Last year, Redbox added an AVOD service, Redbox Free On Demand, which features around 2,000 movie and TV show titles. Just this week, Redbox announced deals to license movies from Shout! Factory, Legendary Television, Magnolia Pictures and Relativity Media. 

Just prior to the AVOD platform, it also launched Redbox Free Live TV, a collection of more than 100 linear channels, including Crackle, Popcornflix, Tastemade, Unsolved Mysteries, Cheddar News, Divorce Court and Pac-12 Network. 

These ad-supported streaming efforts are being monetized by a programmatic sales acumen that Kwong concedes is still in the early developmental stages. 

"Getting any attention from a lot of programmatic players gets tough until you actually reach a certain volume," he said. 

And Redbox's internal advanced advertising team remains small. Most of the ad sales efforts are carried out by an outside vendor, Screenvision. The hope is to build out these advanced advertising resources with the bounty of the SPAC transaction. 

"We also expect to continue building as part of this transaction, more of our internal direct sales as well," Kwong said. 

Redbox's ad-supported streaming audience is growing. It counts over 1 million active monthly users, with engagement hours growing 960% year over year in June. 

Away from the ad biz, Redbox is branching out into the "channels" gambit, as well, offering wholesale aggregation of subscription streaming services including HBO Max, Discovery Plus, Paramount Plus, Starz and Showtime.  Just like Amazon, Apple and Roku do, Redbox shares in any subscription bounty sold on its platform, and it controls customer billing and other data-laden aspects of the overall customer relationship. 

And then there's Redbox Entertainment, the company's movie acquisition arm, formed several years ago to even out "gaps" in the major-studio release schedule that might harm the kiosk business. 

The division has released 21 titles to date, not just within the release window chain of its own platforms, but across the digital spectrum of theatrical exhibition, as well as TVOD, SVOD and AVOD competitors. Notable releases have included the poorly reviewed biopic Capone, starring Tom Hardy, as well as crime drama Running With the Devil, starring Nicolas Cage and Laurence Fishburne. 

Redbox executives have visions of this division possibly overseeing the production of original shows for various Redbox platforms in the future. 

"The beautiful thing about this digital transformation is we're already along the path," Smith said. "This is not something that's all on the come, it's something that's already underway, and we're going to continue to leverage our legacy kiosk business to continue to have it to grow as we go forward."

Redbox is beefing up its AVOD movie catalog as it prepares an ambitious SPAC-enabled IPO play.

The company, best known for its aughts-era legacy business featuring ubiquitous disc-rental kiosks in super markets and 7-Eleven stores, announced deals today to license movies from Shout! Factory, Legendary Television, Magnolia Pictures and Relativity Media. 

Coming to Redbox Free On Demand AVOD platform this summer will be 13, a Most Dangerous Game-ish 2010 thriller starring Jason Statham and Mickey Rourke; Empire State, a 2013 caper film starring Dwayne Johnson, Liam Hemsworth and Emma Roberts; Solace, a 2015 thriller starring Anthony Hopkins as a psychic doctor trying to take down a (yup) serial killer played by Colin Farrell; and Child 44, a 2015 movie starring Tom Hardy as a Stalin-era Russian military cop charged with solving a series of child murders. 

Notably, none of these movies had a score of even 30% on reviews aggregation site Rotten Tomatoes, with 13 bottoming out at 8%. But hey, it’s free, right?

Launched last year, Redbox Free On Demand exists side-by-side with the live/linear Redbox Free Live TV platform, which includes live-streamed channels including Crackle, Popcornflix, Tastemade, Unsolved Mysteries, Cheddar News, Divorce Court and Pac-12 Network. 

Free Live TV is available to enjoy on Redbox.com, Roku, iOS and Android devices, Android TV, Vizio Smart TVs, LG TVs, Xbox One, Xbox Series X/S, Samsung, and Chromecast. Notably, Redbox doesn’t list support from Amazon Fire TV. 

“We know audiences are hungry for entertainment, and we’ve seen steady growth across Free Live TV and Free On Demand since they were launched in 2020,” said Jason Kwong, chief strategy and digital officer for Redbox. “Redbox is building a home for audiences looking for the widest possible selection of entertainment at every price point, including free.”  

In May, Redbox announced plans to go public via acquisition by a special purpose acquisition company (SPAC), Seaport Global Acquisition Corp. The deal is expected to close in the third quarter. Once completed, Redbox will trade on the Nasdaq under the ticker symbol “RDBX.” The transaction is being financed by a combination of $145 million of cash held in Seaport Global Acquisition trust account, as well as a private investment in public equity (PIPE) commitment of $50 million led by Ophir Asset Management.

When the deal closes, Redbox expects to have about $209 million in cash that it can use to pay down debt, as well as fund content acquisition and marketing initiatives.

Redbox has entered an agreement with Chicken Soup for the Soul Entertainment to add OTT channel Crackle to its FAST service, Redbox Free Live TV.

“As we continue to expand Free Live TV, we’re committed to creating a great experience for our customers with a range of entertainment we know they will enjoy, available across their favorite devices,” said Jason Kwong, chief strategy and digital officer for Redbox. “We’re pleased to add Crackle Plus to our channel lineup and deliver more great movies, television and original entertainment to audiences for free.” 

Chicken Soup for the Soul purchased a majority stake in Crackle from Sony in March 2019. Popular programs on the channel include Cold Blood, Crown Vic, Grand Isle, Lennox Lewis: The Untold Story, and Playing with Power: The Nintendo Story.

Redbox touts more than 100 free ad-supported channels. It’s playable on all major platforms, save for Amazon Fire TV. 

Notably, both Redbox and Crackle have signed deals recently with SpotX for advanced advertising services. 

Redbox has not yet publicly announced an active user number for its FAST service. 

SpotX and Redbox reached a deal in which SpotX will serve as the supply-side platform monetizing Redbox’s free live TV and ad-supported VOD content.

Financial terms were not disclosed.

“As one of America’s leading destinations for new release movies and entertainment, we’re excited to partner with Redbox as they build out an ad-supported streaming platform,” said Ryan Kenney, VP of platform at SpotX, which is being acquired by Magnite from RTL Group. 

“Advertisers are always looking for ways to reach engaged audiences in premium, brand-safe environments. Redbox’s Live Free TV and Free on Demand Services deliver just that,” Kenney said.

Redbox, best known for its movie-rental kiosks, is pivoting to a multi-channel streaming platform. Redbox Free Live TV has nearly 100 channels of entertainment and Redbox Free On Demand features hundreds of titles.

“As a company that’s focused on creating the very best ad-supported streaming destination to entertain millions of Redbox customers, we partnered with SpotX to support the launch of Redbox’s Live Free TV and Free on Demand because they have valuable insights and expertise in driving programmatic demand and can help us efficiently maximize our platform’s capabilities,” said Terrence Coles, Sr., director of the Redbox Media Network.

Already streaming more than 75 live-linear channels, Redbox has added an AVOD component to its Redbox Free Live TV platform, launched earlier this year. 

The complimentary Redbox Free On Demand service will site side by side with "Free Live TV" and feature on-demand viewing for “hundreds” of movies and TV shows.

Also read: Redbox Free Live TV Launches Xbox One Apps, Expands Channel Lineup

“Today’s audiences are fueling an unprecedented demand for premium quality on-demand content that is free with advertising,” said Chris Yates, general manager of Redbox On Demand, in a statement. “We expect to see continued growth in AVOD, making Free on Demand a significant addition to our free streaming platform,”

Redbox Free On Demand is currently available on Roku, iOS, Android mobile and TVs, and Vizio, with more devices including LG, Xbox, Samsung, and Chromecast being added shortly.

Redbox is now owned by private equity firm Apollo Global Management.