Redbox to Increase Catalog, Niche Titles in Kiosks as Netflix Exits Disc Biz

As Netflix gets ready to ditch the disc, Redbox has announced it will increase the number of catalog and niche titles in its kiosks to serve former Netflix disc customers.

Netflix closes its disc operations this week, Redbox announced it has been working to provide content that the former DVD.com audience will enjoy in its approximately 29,000 Redbox kiosks nationwide. The titles will include hard-to-find films such as Ugly Dolls, catalog titles including Jerry Maguire, and films from third parties that include Vertical and Decal. These titles are in addition to the latest films from major studios, which will soon include the hit films Oppenheimer and Barbie.

Starting Sept. 29 and running through Oct. 1, Redbox will launch on X (formerly known as Twitter) the social media campaign “Show Us Your Red Envelope.” DVD fans who respond to Redbox’s tweet calling for customers to share photos of their Netflix Red Envelopes may receive a free movie night. Former DVD.com customers can also submit suggestions on the titles they want to rent in kiosks.

Redbox launched more than 20 years ago and has rented more than 2 billion discs across thousands of titles. That equates to Redbox DVD cases wrapping around the earth — twice, the company notes. This year, the most popular films at Redbox kiosks include The Super Mario Bros. Movie, Plane and Cocaine Bear, according to the company. 

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“Redbox continues to be a destination for millions of consumers, and we’re thrilled to expand our kiosk offerings to include hard-to-find titles and classic movies that everyone enjoys,” said William J. Rouhana, Jr., chief executive officer and chairman of Chicken Soup for the Soul Entertainment. “We are expanding our content offerings at approximately 29,000 kiosks to include third-party studio titles and new movies such as Barbie and Oppenheimer, which will be available in the coming months. I look forward to hearing from former DVD.com customers on the titles they want to see at our kiosks.”

Chicken Soup for the Soul Entertainment CEO Says Redbox Kiosks Mounting Comeback, Prices $10.8 Million Stock Offering

Chicken Soup for the Soul Entertainment, owner operator of Redbox kiosks and branded live-TV streaming service, among other over-the-top video properties, remains bullish on legacy packaged-media rental.

Speaking March 31 on the company’s fiscal call, CEO Bill Rouhana said the revitalized theatrical market in 2023 includes 55 “major event” releases throughout the year, translating into a strong rebound for DVD and Blu-ray Disc movie movie rentals across the company’s 32,000 Redbox kiosks nationwide.

Bill Rouhana

The Feb. 7 release of Disney/Marvel Studios’ Black Panther: Wakanda Forever has quickly emerged as the top-renting kiosk title in the current first quarter. Other popular rentals include Top Gun: Maverick and Black Adam.

Rouhana expects kiosk rental revenue in 2023 to reach 30% of pre-pandemic levels in 2019 as major theatrical releases upgrade from sporadic (three major releases in the past seven months) to weekly. That would result in a revenue run rate of $500 million and $150 million in pre-tax revenue, according to Rouhana.

The executive has high rental hopes for the future DVD rentals of Creed III, Scream VI,  Ant-Man and the Wasp: Quantumania, Indiana Jones and the Dial of Destiny, Transformers: Rise of the Beasts and Mission: Impossible — Dead Reckoning Part One, among other titles.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“The frequency of major movie releases is finally here,” he said. “After waiting for years, big movies are back in theaters every week. The flood gates have opened, and the studios are rushing to release as many films as possible on available weekends.”

Rouhana said the average weekly kiosk rentals in March were nearly twice the frequency seen in February. Rentals-per-kiosk-day are up to 40% of 2019 levels.

“And we expect that [frequency] to grow,” he said, alluding to the current theatrical boom impacting kiosks in the second quarter, ending June 30. Rouhana said increased theatrical studio marketing translates into an enhanced disc rental, transactional VOD, and electronic sellthrough (digital purchase).

“We stand to benefit from consumer awareness as the films leave the theatrical window and enter the home entertainment window,” Rouhana said.

The executive said that as studios seek to maximize financial opportunities across original movies, the legacy home entertainment market cannot be ignored.

“As [the studios] realize this, we stand to benefit because we are an important participant in the window, both in physical DVDs and TVOD,” Rouhana said.

Separately, Chicken Soup announced the pricing of a previously disclosed $10.8 million Class A common stock equity offering, including $3.8 million from Chicken Soup for the Soul Holdings. The stock offering is expected to close on or about April 3. The company plans to use the funds for general expenses.

In addition, Chicken Soup announced the rollout of Crackle Connex, an in-house media company selling proprietary and third-party content advertising. The company includes 20 sales rep partners and is being headed by chief revenue officer Philippe Guelton.

‘Nope’ New No. 1 on Redbox Charts

Universal Pictures Home Entertainment’s Nope took over the No. 1 spots on both the Redbox disc rental chart and the Redbox On Demand chart the week ended Oct. 30.

The thriller from writer-director Jordan Peele follows a brother and sister whose horse ranch is stalked by a UFO. It earned $123.3 million at the domestic box office.

The previous week’s top title, Sony Pictures Home Entertainment’s Bullet Train, slipped to No. 2 on both the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s thousands of red kiosks, and the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions.

The No. 3 disc rental, and No. 7 on the digital chart, was Sony Pictures’ The Invitation, a thriller about a young woman (Nathalie Emmanuel) who is invited to visit long-lost newly discovered relatives, but soon uncovers the twisted secrets of her family history.

No. 4 on the disc chart was Universal Pictures’ Beast, which stars Idris Elba as a father who protects his family from a lion attack during an African safari.

The No. 5 disc rental was Lionsgate’s Fall, a thriller about a pair of friends stranded on a remote 2,000-foot tower. It was No. 4 on the digital chart.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The No. 3 digital title was Paramount’s Top Gun: Maverick, down a spot from the previous week.

The No. 5 digital title was Universal’s The Black Phone, the horror film about a kidnapped kid who receives mysterious calls from previous victims.

The only other newcomer to the digital top 10 was, at No. 8, Disney-owned 20th Century Studios’ Barbarian, a horror film about a woman terrorized by a night spent in a rental home.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Oct. 30:

  1. Nope — Universal
  2. Bullet Train — Sony Pictures
  3. The Invitation — Sony Pictures
  4. Beast — Universal
  5. Fall — Lionsgate
  6. Jeepers Creepers: Reborn — Screen Media
  7. DC League of Super-Pets — Warner
  8. Thor: Love and Thunder — Disney/Marvel
  9. Where the Crawdads Sing — Sony Pictures
  10. Minions: The Rise of Gru — Universal

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Oct. 30:

  1. Nope — Universal
  2. Bullet Train — Sony Pictures
  3. Top Gun: Maverick — Paramount
  4. Fall — Lionsgate
  5. The Black Phone — Universal
  6. Jeepers Creepers: Reborn — Screen Media
  7. The Invitation — Sony Pictures
  8. Barbarian — 20th Century
  9. After Ever Happy — Vertical
  10. Where the Crawdads Sing — Sony Pictures

 

Follow us on Instagram!

Redbox Shares Skyrocket 58% in Early Trading

Redbox Entertainment’s fiscal rollercoaster continued with a jolt May 2, with shares skyrocketing 58% to open at $9.77 per share in heavy trading of more than 78 million shares. The average daily trading volume has been around 5.3 million shares.

While Wall Street’s renewed interest in Redbox isn’t underscored by any particular fiscal fundamental, some analysts contend the company has become a meme stock, with individual investors swarming around a low-priced investment that is fluctuating, benefitting short sellers, or investors betting the share price will drop.

B. Riley & Co. analyst Eric Wold

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Regardless, the venerable DVD kiosk vendor is transitioning its business focus away from packaged media rental to digital distribution, including transactional VOD and ad-supported streaming. The service lost $140 million in 2021 but generated more than $35 million in digital revenue. Separately, the company said it gained access to an additional $50 million in credit, which was music to B. Riley & Co. analyst Eric Wold.

“Given our continued belief in the opportunity for the Redbox kiosk network to address the ongoing content needs of the target demographic (e.g., late technology adopters and price-sensitive consumers) — especially in an environment where SVOD platforms are beginning to hit a subscriber wall — we saw the value of additional financing to help [Redbox] get past the current content drought,” Wold wrote in a note.

The analyst believes the new credit line could help Redbox further realize its digital business.

“Digital growth strategies that have been put on hold or delayed as management sought out additional liquidity options,” Wold wrote.

Analyst: DVD Rentals Will Drive Redbox’s Digital Transformation

Redbox’s move toward ad-supported VOD, free ad-supported streaming TV (FAST), and transactional VOD is enough to convince Wedbush Securities media analyst Michael Pachter to begin following the stock.

Redbox is in the midst of a reboot, transforming itself from a kiosk disc rental retailer to a multiplatform entertainment distributor. It’s a similar strategy to the one that erstwhile by-mail DVD rental pioneer Netflix employed 14 years ago in transitioning from physical media rentals to subscription streaming.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Michael Pachter

While much of Wall Street turned its back on packaged media years ago, Pachter contends Redbox’s legacy kiosk business will continue to be a driver of the company’s revenue and digital aspirations. In fact, the analyst believes Redbox only needs to convert from 10% to 15% of its 40 million existing DVD customers to digital to reach more than $1 billion in annual revenue.

Specifically, Pachter contends Redbox’s user base consists primarily of value-conscious customers with inadequate access or disposable income to allow them to stock up on multiple SVOD services. With Redbox pushing free ad-supported streaming, is base users are more likely to recognize the brand and become consumers of advertising on the Redbox channel.

“All the while, these customers are likely to remain loyal to the Redbox [DVD] brand, and we expect the company to capture a reasonable share of consumption of its AVOD and VOD service offering,” Pachter wrote in a note.

For 2023, Redbox is guiding to total revenue of $1.1 billion, with 66% of revenue coming from DVD rentals and the remaining 33% of revenue coming from the growing digital segment. That compares with second-half 2021 projections with 89% of revenue coming from DVD, and 11% from AVOD.

“Redbox’s 39 million loyalty members can [be leveraged] to market digital products…and Redbox makes the transition from disc simple and in-expensive,” Pachter wrote.

Redbox Stock on Wild Run Day After Going Public

Redbox, the venerable kiosk disc rental company transitioning to digital entertainment distribution, Oct. 26 saw its shares up more than 96% at $23.39 per share in early trading — the day after going public on the Nasdaq exchange. Shares fell minutes later to around $19 and then $17 after opening at $11.75 per share, with trading volume above 7.6 million shares and climbing.

Redbox Entertainment Inc. is the new corporate identity following the company’s previously-announced merger with Seaport Global Acquisition Corp., a special purpose acquisition company, or SPAC.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

At launch, Redbox had more than 45 million shares outstanding, including a majority held by former owner Apollo Capital Management, which acquired the disc vendor from Outerwall in 2016 for $1.6 billion.

Redbox Completes Combo With Seaport Global to Go Public

Redbox has completed its previously announced business combination with Seaport Global Acquisition Corp., a publicly traded special purpose acquisition company. As a result of the merger, the entity will be known as “Redbox Entertainment Inc.”

Redbox’s common stock and warrants are expected to begin trading on Nasdaq Oct. 25 under the ticker symbols “RDBX and “RDBXW,” respectively.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“Today marks the beginning of Redbox’s next chapter,” Galen Smith, CEO of Redbox, 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. 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.”

‘The Invisible Man’ Remains Atop Redbox Disc Rental Charts

Universal Pictures’ The Invisible Man held onto the No. 1 spot on Redbox’s kiosk disc rental chart for a second consecutive week. However, the modernized horror remake slipped to No. 2 on the Redbox On Demand chart for the week ended June 7.

Taking over the top spot on Redbox On Demand chart, which tracks digital rental transactions, was Warner’s Just Mercy, a civil rights-themed legal drama that the studio is offering for free via VOD during June to support current social justice movements.

Similarly, Paramount’s Selma, also offered as a free VOD rental in June, was No. 10 on the digital chart. And Universal’s Brian Banks, about a black high school football star falsely accused of rape, was No. 6.

Disney-owned Fox’s The Call of the Wild adaptation starring Harrison Ford remained in the No. 2 spot on the rental chart, which tracks DVD and Blu-ray Disc rentals at the company’s more than 40,000 red kiosks.

The No. 3 disc rental was Warner’s Birds of Prey. The No. 3 On Demand title was Sony Pictures’ Bad Boys for Life, which remained the No. 7 disc rental.

The No. 4 disc rental was Sony Pictures’ Bloodshot, which was No. 7 on the digital chart.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Paramount’s Sonic the Hedgehog eased into the No. 5 disc rental slot and was No. 4 on the digital list.

Sony Pictures’ Fantasy Island horror reboot was the No. 5 On Demand title, and No. 6 on the disc chart.

Screen Media’s Robert the Bruce, a docudrama about the 14th century Scottish king, debuted as the No. 9 disc rental.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended June 7:

  1. The Invisible Man (2020) — Universal
  2. The Call of the Wild — Fox
  3. Birds of Prey … — Warner
  4. Bloodshot — Sony Pictures
  5. Sonic the Hedgehog — Paramount
  6. Fantasy Island — Sony Pictures
  7. Bad Boys for Life — Sony Pictures
  8. The Way Back — Warner
  9. Robert the Bruce — Screen Media
  10. Dolittle — Universal

 

Top Digital, Redbox On Demand, Week Ended June 7:

  1. Just Mercy — Warner
  2. The Invisible Man (2020) — Universal
  3. Bad Boys for Life — Sony Pictures
  4. Sonic the Hedgehog — Paramount
  5. Fantasy Island — Sony Pictures
  6. Brian Banks — Universal
  7. Bloodshot — Sony Pictures
  8. Jumanji: The Next Level — Sony Pictures
  9. Trolls World Tour — Universal
  10. Selma — Paramount

 

Follow us on Instagram!

‘Hobbs & Shaw’ Drives to Top of Redbox Charts

Universal Pictures’ Fast & Furious Presents: Hobbs & Shaw debuted at No. 1 on Redbox’s kiosk disc rental and On Demand charts the week ended Nov. 10.

The Redbox disc rental chart tracks DVD and Blu-ray Disc rentals at the company’s more than 40,000 red kiosks. The Redbox On Demand chart tracks digital transactions, including both electronic sellthrough and streaming rentals.

The “Fast & Furious” spinoff film earned $173.8 million at the domestic box office.

Disney’s The Lion King remake dropped to the No. 2 spot on the disc chart.

The No. 3 disc rental was Lionsgate’s Scary Stories to Tell in the Dark, which was No. 2 on the On Demand chart.

The No. 4 disc rental was Warner’s The Kitchen, a crime drama that earned $12.2 million at the domestic box office.

Disney’s Toy Story 4 dropped to No. 5 on the disc chart.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The Art of Racing in the Rain, from 20th Century Fox, took No. 3 on the On Demand chart and was the No. 6 disc rental.

Sony Pictures’ Spider-Man: Far From Home slid to No. 4 on the digital chart.

Universal’s The Secret Life of Pets 2 was No. 5 on the On Demand chart.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Nov. 10:

  1. Fast & Furious Presents: Hobbs & Shaw — Universal
  2. The Lion King — Disney
  3. Scary Stories to Tell in the Dark — Lionsgate
  4. The Kitchen — Warner
  5. Toy Story 4 — Disney
  6. The Art of Racing in the Rain — Fox
  7. Running With the Devil — Redbox
  8. Aladdin (2019) — Disney
  9. Stuber — Fox
  10. Spider-Man: Far From Home — Sony Pictures

 

Top Digital, Redbox On Demand, Week Ended Nov. 10:

  1. Fast & Furious Presents: Hobbs & Shaw — Universal
  2. Scary Stories to Tell in the Dark — Lionsgate
  3. The Art of Racing in the Rain — Fox
  4. Spider-Man: Far From Home — Sony Pictures
  5. The Secret Life of Pets 2 — Universal
  6. Stuber — Fox
  7. John Wick: Chapter 3 — Parabellum — Lionsgate
  8. Crawl — Paramount
  9. The Hustle — MGM
  10. Men In Black: International — Sony Pictures

 

Redbox Launches Content Acquisition and Production Arm

Redbox is revving up its efforts to provide original content to customers of its disc rental kiosks and Redbox on Demand transactional video-on-demand service.

The company on Oct. 25 announced the formation of Redbox Entertainment, a new label to acquire and produce content for Redbox’s 50 million U.S. customers.

“The Redbox brand is built on delivering the best selection of movies from the biggest blockbuster releases to films in genres and with actors that appeal to our loyal customers,” said Redbox CEO Galen Smith. “The formation of Redbox Entertainment leverages our deep insights to bring projects that we know appeal to our audience to deliver additional value and entertainment.”

Marc Danon has been tapped as senior advisor to head content acquisition for Redbox Entertainment. He reports directly to Smith.

Marc Danon

Danon previously was president of acquisitions and co-productions at Broad Green Pictures; prior to joining Broad Green in July 2015, he spent eight years at Lionsgate, most recently as SVP of acquisitions and business development. There, he worked on the acquisition of such films as Kevin Hart: Let Me ExplainJohn WickDear White PeopleA Most Wanted ManEverything Must Go and The Skeleton Twins.

Danon also built and managed third-party brands and partnerships with ABC, Codeblack, Comcast, ITV, Marvel, NBC, and Saban.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Earlier in his career, Danon held various acquisitions positions at Netflix, Catch 23 Entertainment and Artisan Entertainment.

“Marc is a terrific fit to lead the growth of Redbox Entertainment,” Smith said. “He’s a talented creative with an impressive track record as a champion of films that catch fire with audiences; and a skilled executive adept at maximizing distribution opportunities and cultivating strategic partnerships.”

Redbox Entertainment is funding, developing and producing projects across genres, with a focus on action, comedy, and suspense/thrillers, the company said.

Projects are being sourced now — directly and through a number of distribution partners and channels. New projects will be announced soon.

Content acquired by Redbox Entertainment will be available physically at Redbox kiosks and digitally via Redbox On Demand, as well as in downstream windows post-Redbox release.

Redbox reaches 50 million consumers across the United States at more than 41,000 kiosks and an expanding On Demand offering. The company’s loyalty program, Redbox Perks, has 34 million members.