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Redbox was an American automated video-rental and streaming-media company best known for its red DVD and Blu-ray kiosks.

Last updated August 31, 2026

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Overview

Redbox was an American entertainment-rental company built around automated kiosks that rented and sold DVDs and Blu-ray discs. Its machines were commonly placed at supermarkets, pharmacies, convenience stores and other high-traffic retail locations, offering consumers a low-cost alternative to video-rental stores and subscription services. The company later added video-game rentals, transactional video-on-demand, advertising-supported streaming television, free live television channels and a small content-production operation. The business originated inside McDonald's as Project 361, an initiative intended to explore automated retail formats. Early machines sold a variety of products under the TikTok Easyshops name, but McDonald's abandoned that use in 2003. McDonald's executive Gregg Kaplan redirected the concept toward DVD rentals, and a pilot began in Denver in 2004. Redbox's kiosk model benefited from convenience, extended operating hours and a return-anywhere policy that allowed customers to return a disc to any Redbox machine rather than only to the kiosk where it had been rented. Coinstar became a major investor in 2005, purchasing an initial 47 percent stake for $32 million. It increased its ownership to 51 percent in 2008 and acquired the remaining interest in 2009. During the late 2000s and early 2010s, Redbox expanded rapidly as traditional video-rental stores closed. It surpassed Blockbuster as the largest United States video-rental chain by kiosk count in 2007, reached 100 million rentals in 2008 and passed one billion rentals in 2010. At its peak, the company operated more than 34,000 kiosks and accounted for more than half of the United States physical DVD-rental market. Redbox's growth created tensions with film studios, which argued that inexpensive kiosk rentals could reduce DVD sales and weaken studio control over new-release distribution. Universal, 20th Century Fox and Warner Bros. attempted to restrict Redbox's access to newly released discs. Redbox brought antitrust litigation against the studios and temporarily acquired discs through retail channels. Settlement agreements reached in 2010 generally required a 28-day delay before certain studio releases could be rented, although later distribution arrangements shortened some delays. The company diversified during the 2010s. It introduced Blu-ray rentals, expanded video-game rentals nationwide, acquired NCR's Blockbuster Express kiosk business in 2012, tested event-ticket sales and launched Redbox On Demand in 2017. It also created Redbox Entertainment for film and television content acquisition and launched Redbox Free Live TV in 2020. These efforts could not fully offset the long-term migration from physical media to streaming. Redbox's reported revenue declined substantially from 2019 through 2021. Redbox became publicly traded through a merger with Seaport Global Acquisition in October 2021 under the ticker RDBX. Chicken Soup for the Soul Entertainment announced a $375 million acquisition in May 2022 and completed it in August of that year, taking Redbox private. The combined company experienced severe financial problems, including unpaid obligations to retail partners and employees. Chicken Soup for the Soul Entertainment entered Chapter 11 bankruptcy in June 2024, and the case was converted to Chapter 7 liquidation in July. Redbox's digital services and app stopped functioning, employees were laid off and its kiosks and other assets became subject to liquidation and removal.

History

Redbox began as an experimental McDonald's automated-retail project known as Project 361. The initial concept involved kiosks selling various consumer goods under the TikTok Easyshops name. When McDonald's discontinued that use in 2003, executive Gregg Kaplan adapted the machines for DVD rental. A Denver test began in 2004, and the resulting Redbox model emphasized convenience, low prices and the ability to return rentals at any kiosk. Coinstar purchased 47 percent of Redbox in 2005 for $32 million. It raised its stake to 51 percent in early 2008 and bought the remaining interest in February 2009. Redbox expanded through supermarkets, pharmacies, convenience stores and other retailers, avoiding the real-estate costs associated with conventional video stores. By November 2007, it had exceeded Blockbuster in kiosk count. The company reached 100 million rentals in February 2008 and one billion rentals in September 2010. The kiosk network became a major force in United States physical-media rental. It added Blu-ray support in 2010 and video games in selected markets that year, making games available throughout its network by 2011. In 2012, Redbox acquired Blockbuster Express from NCR, adding more than 10,000 kiosks and associated inventory and retailer agreements. It also experimented with ticket sales through Redbox Tickets, although the initiative did not become a central business line. Redbox faced a significant distribution dispute with Hollywood studios. Universal, 20th Century Fox and Warner Bros. sought to delay or restrict the company's access to new releases because of concerns about rental economics and the effect of kiosk availability on disc sales. Redbox sued the studios, bought some discs through retailers and negotiated distribution arrangements with Sony Pictures, Paramount Pictures and Lionsgate. Settlements with Universal, Fox and Warner Bros. in 2010 generally imposed a 28-day rental delay. By 2017, later agreements allowed certain Fox and Warner titles to reach Redbox seven days after home-video release. The physical-rental business peaked in the early 2010s. In 2013, kiosk rentals reached approximately 772.87 million items and generated about $1.97 billion in revenue, according to the cited reference material. Annual rentals declined afterward as consumers shifted toward subscription streaming and digital video. Redbox responded with digital and content initiatives, including Redbox On Demand in 2017, the Redbox Original film Benjamin in 2018, Redbox Entertainment in 2019 and Redbox Free Live TV in 2020. The company also discontinued video-game rentals in 2019, although it continued selling used games for a limited period. Outerwall, Redbox's parent company, was acquired by Apollo Global Management in 2016 and its businesses were separated. Galen Smith became Redbox's chief executive later that year. Redbox subsequently pursued a public listing through a merger with Seaport Global Acquisition, which closed in October 2021 under the symbol RDBX. Chicken Soup for the Soul Entertainment announced a $375 million acquisition in May 2022 and completed the transaction in August. Redbox operated approximately 34,000 kiosks at the end of 2022 and explored new advertising uses, including a 2023 arrangement involving TikTok content on kiosk screens. Financial and operating stress intensified, however. Retail partners reported unpaid commissions, and major chains began terminating contracts or filing lawsuits. The parent company disclosed substantial losses and warned that it might need bankruptcy protection. In June 2024, Chicken Soup for the Soul Entertainment filed for Chapter 11 after missing employee payments and failing to secure additional financing. In July, a bankruptcy judge converted the case to Chapter 7 liquidation. Redbox's streaming services and mobile application stopped working, employees were laid off and the physical kiosks became liquidation assets. Some machines remained temporarily functional, while others were removed for recycling, resale or donation of the discs they contained.

  • 2024

    Liquidation and shutdown

    [1]

    Following the parent's Chapter 7 conversion, Redbox's digital services shut down and its assets entered liquidation.

  • 2022

    Acquired by Chicken Soup for the Soul Entertainment

    [1]

    The acquisition took Redbox private less than a year after its public listing.

  • 2021

    Public listing under RDBX

    [1]

    Redbox completed its merger with Seaport Global Acquisition and began trading on Nasdaq.

  • 2020

    Redbox Free Live TV launched nationally

    [1]

    Redbox introduced a nationwide free, advertising-supported streaming television service.

  • 2017

    Redbox On Demand launched

    [1]

    The company expanded from physical kiosks into digital film rental and purchase.

  • 2015

    Canadian operations discontinued

    [1]

    Redbox removed its approximately 1,400 Canadian kiosks after determining that local demand was too low.

  • 2012

    Blockbuster Express acquisition

    [1]

    Redbox acquired the competing Blockbuster Express kiosk operation from NCR.

  • 2010

    One billionth rental reached

    [1]

    The company surpassed one billion cumulative movie and game rentals.

  • 2007

    Redbox surpasses Blockbuster by kiosk count

    [1]

    Redbox became the largest United States video-rental chain by number of locations.

  • 2005

    Coinstar buys minority stake

    [1]

    Coinstar acquired 47 percent of Redbox for $32 million.

Products and positioning

Convenient, low-cost home entertainment delivered through widely distributed self-service kiosks, later extended into digital rentals and ad-supported streaming.

  • Physical media rental · 2004

    Redbox DVD and Blu-ray kiosks

    Self-service kiosks rented and sold films on DVD and Blu-ray. A typical machine held a rotating inventory of hundreds of discs, used touchscreen ordering and robotic retrieval, and supported returns at any Redbox kiosk. Kiosks were installed inside or outside retail stores and represented the company's core service.

  • Interactive entertainment rental · 2010

    Video-game rentals

    Redbox tested video-game rentals in selected United States markets in 2010 and expanded the service across its kiosk network by 2011. The company discontinued game rentals in 2019, while continuing to sell used game copies through the end of that year.

  • Transactional video-on-demand · 2017

    Redbox On Demand

    A digital service introduced in 2017 that allowed customers to rent or purchase films online, extending Redbox beyond physical kiosks as streaming and digital ownership became more important to consumers.

  • Ad-supported streaming television · 2020

    Redbox Free Live TV

    A free, advertising-supported streaming television service soft-launched in February 2020 and received a nationwide launch later that month. It complemented Redbox's transactional film services with scheduled channels and ad-funded viewing.

  • Film and television content · 2019

    Redbox Entertainment

    A content-production and acquisition division established in 2019. Redbox had earlier acquired the independent film Benjamin for an exclusive 90-day release period through its kiosks and on-demand service.

Controversies

  • 2024

    Unpaid retail commissions and bankruptcy-related collapse

    Retail partners including 7-Eleven, CVS and Sheetz alleged that Redbox failed to pay contractual commissions. The disputes occurred alongside missed employee payments, severe financial losses and the parent's conversion from Chapter 11 to Chapter 7 liquidation.

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Marketing campaigns

  • 2023Redbox–TikTok kiosk-screen partnership

    United States

    Redbox and TikTok announced an arrangement to display selected TikTok content on screens at at least 3,000 Redbox kiosks. The initiative connected the kiosk network with digital advertising and short-form video promotion.

    Outcome. The partnership was overtaken by Redbox's financial collapse and subsequent liquidation.

Brand decisions

  • 2024

    Parent company enters liquidationOther

    Background

    Chicken Soup for the Soul Entertainment reported large losses, missed employee payments and difficulty obtaining financing.

    Action taken

    The parent filed for Chapter 11 bankruptcy, and a judge converted the case to Chapter 7 liquidation in July.

    Aftermath

    Redbox's online services and app stopped functioning, employees were laid off and the kiosk fleet became subject to removal and liquidation.

    Chicken Soup for the Soul Entertainment reported loss. $636.6 million (2023)

  • 2022

    Acquired by Chicken Soup for the Soul EntertainmentM&A

    Background

    Redbox's public-market business faced pressure as physical-media rental declined and digital competition increased.

    Action taken

    Chicken Soup for the Soul Entertainment agreed to acquire Redbox and completed the transaction in August 2022.

    Aftermath

    Redbox became a wholly owned subsidiary and was no longer an independent publicly traded company.

    Announced acquisition value. $375 million (2022)

  • 2019

    Ends video-game rentalsStrategy

    Background

    The company was responding to changing consumer behavior and the increasing shift toward digital entertainment.

    Action taken

    Redbox announced that it would stop renting video games while continuing to sell used copies through the end of the year.

    Aftermath

    The company focused more heavily on film rentals, digital video and advertising-supported services.

  • 2015

    Exits the Canadian marketStrategy

    Background

    Redbox had installed approximately 1,400 kiosks in Canada but reported that consumer demand was insufficient.

    Action taken

    The company ended Canadian operations and relocated the kiosks to United States retail locations.

    Aftermath

    Redbox concentrated its physical-kiosk business on the United States.

  • 2012

    Acquires Blockbuster ExpressM&A

    Background

    NCR operated a competing kiosk network in partnership with Blockbuster.

    Action taken

    Redbox acquired more than 10,000 Blockbuster Express kiosks, inventory and selected retailer contracts.

    Aftermath

    Redbox strengthened its kiosk footprint and later sold some machines in less competitive markets to third-party providers.

    Acquisition price. $100 million (2012)

  • 2010

    Settles studio distribution disputes with delayed new-release rentalsStrategy

    Background

    Major studios sought to prevent or delay Redbox's access to newly released DVDs, arguing that kiosk rentals threatened studio sales and rental economics.

    Action taken

    Redbox settled litigation with Universal, 20th Century Fox and Warner Bros. and accepted a general 28-day waiting period for affected releases.

    Aftermath

    Redbox retained access to major studio content through distribution agreements, and later deals reduced the delay for some Fox and Warner titles to seven days.

Recent events

  • Redbox partnered with FreeWheel on streaming advertising technology[2]

    Redbox announced a partnership with FreeWheel to integrate programmatic technology across Redbox's free streaming platforms, enabling advertisers to access and buy Redbox inventory and target specific audiences.

  • Reported

    BELFOR Franchise Group announced its acquisition of redbox+[3]

    BELFOR Franchise Group announced its acquisition of redbox+, a waste management solutions company. The article does not state that the acquisition had been completed.

  • Reported

    Redbox Entertainment acquires North American distribution rights to SHE BALL[4]

    Redbox Entertainment acquired North American distribution rights to SHE BALL. Redbox said the film would be released in theaters and made available on demand, including through Redbox, on August 6.

  • Reported

    Redbox Entertainment acquires North American distribution rights to The Last Son[5]

    Redbox Entertainment acquired the North American distribution rights to the film The Last Son. The film was slated for theatrical release and On Demand later in the year.

  • Reported

    Redbox launches Free On Demand streaming service[6]

    Redbox launched Free On Demand, a new ad-supported streaming service offering viewers free access to hundreds of titles each week.

  • Reported

    Red Box announces Conversa voice platform launch[7]

    Red Box announced the launch of Conversa, an enterprise voice platform, with an initial Limited Release. The platform is to be available alongside Red Box's current platform.

  • Reported

    Redbox launches free live TV service[8]

    Redbox launched Redbox Free Live TV, a free, ad-supported live TV service available to some users through its website or mobile app.

  • Unconfirmed

    Reported

    Redbox launches Free Live TV[9]

    Redbox launched Free Live TV, an ad-supported online video streaming service that was in limited release.

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Sources18 sources

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