Expect a revived approach to streaming video.
Redbox has tried to stay relevant over the years by offering on-demand streaming video and free live TV, but it is still best known as the company that rents out movie discs at kiosks. However, it may soon have a better chance of shaking that reputation. Chicken Soup for the Soul Entertainment, which relaunched Sony’s Crackle service, is acquiring Redbox in an all-stock transaction. The acquisition will assist Chicken Soup in developing an ad-supported streaming service for “value-conscious customers” and will “accelerate” Redbox’s transition from physical to digital.
- Texas law that allows users to sue social networks for censorship is now in effect
- According to reports, Meta is canceling some Reality Labs projects.
The deal is expected to close in the second half of 2022. Chicken Soup will own a 76.5 percent stake, while Redbox will own the rest. There weren’t mentions of leadership changes, but Chicken Soup won’t change its name as part of the purchase.
It may seem unusual to buy a company best known for supporting shrinking video formats. Chicken Soup stands to gain a lot, though. The new owner will have access to tens of millions of potential customers, including 40 million Redbox Perks members —even if only a fraction embrace streaming, that’s still a large potential audience. Although we wouldn’t expect it to challenge heavyweights like Amazon or Netflix, it might help Redbox and Chicken Soup compete with free-to-watch alternatives like Tubi or The Roku Channel.
