Redbox owner Chicken Soup for the Soul files for bankruptcy
How many Redbox kiosks are currently operational in the US?
There are currently around 34,000 Redbox kiosks operational in the US, primarily located at grocery and drug stores.
Why has Redbox's parent company filed for bankruptcy?
Redbox's parent company, Chicken Soup for the Soul Entertainment (CSSE), filed for Chapter 11 bankruptcy protection due to financial struggles, including a net loss of $636.6 million in 2023. The company has nearly $1 billion in debt and owes millions to entertainment companies and retailers. The decline in people renting physical DVDs and the impact of Hollywood strikes on content production also contributed to the bankruptcy filing.
How did Hollywood strikes impact CSSE's plans?
The Hollywood strikes hindered CSSE's plans for Redbox by limiting the production of fresh content, which affected their ability to combine the DVD rental business with their free streaming services. This, along with the decline of people renting physical DVDs, contributed to the company's financial struggles and eventual bankruptcy filing.