Redbox Lost $140 Million in Fiscal 2021

Redbox Entertainment reported it lost $140.7 million on revenue of $288.5 million for the fiscal year ended Dec. 31, 2021. That compared with a fiscal loss of $69.5 million and revenue of $546.2 million in 2020.

The legacy kiosk DVD rental company said it has been significantly challenged by the COVID-19 pandemic with a lack of new-release movie titles undermining consumer demand. Indeed, in 2019, before the pandemic began, Redbox reported a net loss of $7.5 million on revenue of $858.3 million.

Indeed, Redbox said it released just 57 new DVD rental titles in 2021, compared with 68 in 2020 and 140 movies in 2019.

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Throughout the first three quarters of 2021, Redbox released 33 theatrical titles at the kiosk, which is typically what would have been released in one quarter pre-COVID. The bulk of the releases for 2021 came in the fourth quarter with 24 releases. Packaged-media rental revenue decreased 57% compared with 2020.

“However, as content built throughout the quarter, it was still inconsistent week to week and met with challenges from the outbreak of the Omicron variant of COVID-19,” Redbox wrote in the 10K filing.

Redbox said it generated $253.4 million in kiosk rental revenue in 2021, down from $506.4 million in 2020. The company realized 62.3 million disc rental transactions, down from 146.3 million transactions in 2020. Redbox generated $35.1 million in digital revenue, down from $39.7 million in 2020.

Digital revenue was also negatively impacted by the lack of new releases in the period versus a year ago reflected by a decrease of 11.6% in revenue.
Partially offsetting the declines was strong growth in the company’s kiosk servicing business and distribution of original content under the Redbox Entertainment label.

The company, which has been aggressively transitioning to digital distribution, including transactional VOD and ad-supported VOD, now operates about 38,300 kiosks nationwide — down from more than 41,400 in 2019.