If you use Redbox’s streaming service, you may have noticed you can’t stream the movies you bought or even the free collection of movies they offer. Now, though, the Redbox app on Roku has not just stopped working but has officially been removed and replaced with a message saying it is no longer offered.
This comes as the Judge overseeing Redbox’s parent company’s bankruptcy has converted it to a Chapter 7 bankruptcy, meaning the company will shut down and sell off all assets. This was first spotted by Lowpass. With this move Redbox DVD rentals will end as will it streaming services. Other streaming services like Crackle and Chicken Soup for the Soul will also shutdown.
It is unknown what this means for people who bought movies from Redbox streaming. For now customers have been locked out of accessing the movies or TV shows they have purchased.
DVDs will reportedly be sold off at some point in the future. Exactly how fast they will pull the plug on the DVD rental kiosks is unknown, but soon, it will happen.
Chicken Soup for The Soul Entertainment was in a tough situation after acquiring Redbox in 2022 for $50 million in stock and assumption of $325 million in debt. Add in a shaky media environment with cratering ad revenue and quarterly losses, and the company’s future is very much in the air. In August, CEO Rouhana said that the company was holding a strategic review to evaluate its opportunities, which is business speak for putting itself up for sale.
Last year, Chicken Soup for The Soul Entertainment announced that it was in active discussions for a potential sale but so far nothing has come from these talks.
Like many media companies, the company has been hit by a soft ad market that has negatively impacted revenues. For a company that heavily relies on ad-supported streaming, this market must negatively impact the service. Right now, the company seems confident that they will be able to work through these issues and pay their partners. We will have to wait and see what happens.
We have been unable to reach Redbox’s parent company for comment as its PR staff no longer work there.