Redbox is finally Deadbox.
Streaming Services Facing Crisis as Redbox’s Parent Company Declares Bankruptcy
Bankruptcy Filing
Streaming services point to another casualty, as Redbox’s parent company, Chicken Soup for the Soul Entertainment, files for bankruptcy.
The parent company filed for Chapter 11 bankruptcy protection on Saturday, according to a report from . Chicken Soup for the Soul Entertainment, a spin-off company named after the popular self-help books, has accumulated nearly a billion dollars in debt and . The company went public in 2017 and began acquiring some lesser-known digital services, like Popcornflix, Crackle, and .
It is unclear at this point whether those DVD rental vending machines will ultimately disappear due to the bankruptcy. Chicken Soup for the Soul Entertainment owes many lenders and may be able to sell Redbox to an interested buyer, although it is unlikely. to recoup the amount it paid just two years ago.
Decline of Physical Media
At its peak in the early 2010s, Redbox had . The company’s website states that all has Distributing DVDs and Blu-Rays, but some machines have been reported as .
The disappearance of Redbox is another indicator that physical media is becoming a thing of the past. and announced last year that physical stores will no longer sell DVDs and Blu-Ray discs. started its business by mailing DVDs and discontinued its physical media service last year. In its 2023 report, the industry analysis of the media Digital Entertainment Group said physical media home video revenue in the U.S. during the year, a 25% drop from the previous year.
