If you utilize Redbox’s streaming service, you may have discovered that you are unable to watch either the movies you purchased or the free library of movies they provide.
Now, however, the Redbox app on Roku has not only ceased operating, but has been officially removed and replaced with a notification stating that it is no longer available.
This comes as the Judge supervising Redbox’s parent company’s bankruptcy has moved it to Chapter 7, which means the company will close and liquidate all assets. This was initially noticed by Lowpass. With this change, Redbox DVD rentals and streaming services will be discontinued. Other streaming services, such as Crackle and Chicken Soup for the Soul, will also shut down.
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It is unclear what this implications for consumers who purchased movies through Redbox streaming. Customers are currently unable to view their purchased movies or TV episodes.
DVDs are expected to be sold off at some point in the future. It’s unclear how soon they’ll turn off the DVD rental kiosks, but it will happen.
Chicken Soup for The Soul Entertainment was in a difficult predicament after acquiring Redbox in 2022 for $50 million in equity and assuming $325 million in debt. Add in a fragile media market with falling ad income and quarterly deficits, and the company’s future is uncertain. In August, CEO Rouhana stated that the company was conducting a strategic review to assess its potential, which is business lingo for listing itself for sale.
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Last year, Chicken Soup for The Soul Entertainment reported that company was in serious conversations about a possible sale, but nothing has come of these talks.
Like many other media organizations, the company has been struck by a soft ad market, which has had a detrimental impact on sales. For a corporation that relies largely on ad-supported streaming, this market must have a detrimental impact. Right now, the organization appears confident that they will be able to resolve these challenges and pay their partners. We’ll have to wait and see what happens.
We were unable to reach Redbox’s parent firm for comment because its public relations staff no longer work there.
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