Since 2004, red DVD rental kiosks posted near entrances of grocery stores and the like tempted shoppers with movie (and until 2019, video game) disc rentals. But the last 24,000 of Redbox's kiosks are going away, as Redbox's parent company moved to chapter 7 liquidation bankruptcy this week. The end of Redbox marks another death knell for the DVD industry at a time when volatile streaming services are making physical media appealing again.
Redbox shutting down
Chicken Soup for the Soul Entertainment, which owns Redbox, filed for chapter 11 bankruptcy on June 29. But on Wednesday, Judge Thomas M. Horan of the US Bankruptcy Court for the District of Delaware approved a conversion to chapter 7, signaling the liquidation of business, per Deadline. Redbox's remaining 24,000 kiosks will close, and 1,000 workers will be laid off (severance and back pay eligibility are under review, and a bankruptcy trustee will investigate if trust funds intended for employees were misappropriated).
Chicken Soup bought Redbox for $375 million in 2022 and is $970 million in debt. It will also be shuttering its Redbox, Crackle, and Popcornflix streaming services.
DVDs in decline
As a DVD-centric business, Redbox was living on borrowed time. The convenience of on-demand streaming made it hard to compete, and bankruptcy proceedings revealed that Redbox was paying employees more than it was earning.
Overall, the past year hasn't been a good one for DVD or Blu-ray devotees, as many businesses announced that they're exiting the industry. In August, Netflix quit its original business of mailing out rental DVDs. Now the king of streaming, the remaining DVD business was so menial that Netflix gave away DVDs as it shut down operations.
Once industry disruptors, DVDs and Blu-rays have been further ushered out the door in 2024. In April, Target confirmed that it will only sell DVDs in stores during "key times," like the winter holiday season or the release of a newer movie to DVD. The news hit especially hard considering Best Buy ended DVD and Blu-ray sales in-store and online this year. Disney is outsourcing its DVD and Blu-ray business to Sony, and Sony this month revealed plans to stop selling recordable Blu-rays to consumers (it hasn’t decided when yet).