Redbox Generated $31.6 Million in Q3 Revenue
November 25, 2022
Redbox generated a net loss of $9.5 million on revenue of $31.6 million renting DVDs and Blu-ray Discs, and renting and selling digital movies, in the third quarter (ended Sept. 30). The revenue, which accounted for 34% of parent Chicken Soup for the Soul Entertainment’s total $72.4 million in revenue, represents the partial period of the quarter after CSSE officially completed its $375 million acquisition of Redbox on Aug. 11.
The company operates about 34,000 kiosks nationwide and is looking to add 1,000 kiosks at a select national retailer in 2023. Disc rental revenue topped $24.8 million.
In an age of streaming, rental movies on disc may seem old-school. And while streaming video represented almost 85% of consumer home entertainment revenue in the most recent fiscal period, disc rentals continue to generate incremental revenue.
Consumers spent nearly $136 million renting discs in the quarter, which was down more than 9% from more than $149 million in the prior-year period, according to the DEG: The Digital Entertainment Group.
Indeed, Netflix generated $35 million renting discs through the mail in the U.S. in the quarter. Through nine months of the fiscal year, the streamer’s legacy business unit totaled more than $112 million, or more than $410,000 in daily disc rental revenue across 273 days.