What Happened to Redbox Kiosks? The Decline Explained

Redbox was once the top choice for renting DVDs. But over the years, it has seen a big drop in popularity. The number of its famous red kiosks has fallen by 8,000. This is about a quarter of its total since Chicken Soup for the Soul Entertainment bought it in mid-2022. The main reason for this decline is a severe lack of funds. Redbox can’t buy new movies for its kiosks or pay its bills anymore.

Key Takeaways

  • Redbox, once the dominant DVD rental giant, has seen a rapid decline in the number of its iconic red kiosks.
  • The company has lost at least 8,000 kiosks, or roughly a quarter of its total footprint, since being acquired by Chicken Soup for the Soul Entertainment.
  • This decline is largely attributed to a severe cash flow crisis that has prevented Redbox from acquiring new movie releases or paying its bills.
  • Redbox’s struggles are indicative of the broader challenges facing the physical media business model, as streaming services have outpaced the demand for traditional DVD rentals.
  • The company’s failed transition to a streaming service and the decline in new movie releases for its kiosks have further contributed to its downfall.

The Rapid Fall of the DVD Rental Giant

Redbox’s red DVD rental kiosks were everywhere. You could find them in front of stores and markets. However, their numbers have dropped a lot lately. Since the merger with Chicken Soup for the Soul Entertainment in mid-2022, Redbox lost around 8,000 kiosks. This is about a quarter of their kiosks worldwide.

Cash Flow Crisis Leads to Unpaid Bills and Lawsuits

The drop in Redbox’s kiosk network came fast. This fall was due to a big lack of money. This made it so they couldn’t pay their bills. They also couldn’t get hands on latest movies for the kiosks they still have. Also, the money problems caused lawsuits from those who provide movies and other business friends. This made everything even harder for Redbox.

Challenges Facing the Physical Media Business Model

The Redbox physical media model is declining due to several challenges. The rise of streaming services like Netflix and Hulu has been a big problem. People now prefer the ease and quick access of digital services over renting DVDs.

Streaming Services Outpace DVD Rentals

Streaming services have become the main choice for entertainment. Their easy access and vast content hurt Redbox’s business. It’s hard for Redbox to keep up because people are moving away from renting DVDs.

Redbox’s Failed Transition to Streaming

Redbox tried to include streaming but failed compared to Netflix and Hulu. It couldn’t attract enough people to subscribe. This meant Redbox couldn’t compete well in the streaming world.

Decline in New Movie Releases for Redbox Kiosks

Less new movies are available for Redbox kiosks. Studios don’t give as many DVDs to Redbox now. This means there are fewer new titles for customers to rent.

Retailers Terminating Kiosk Agreements Due to Non-Payment

Redbox’s cash flow problem has caused many retailers to remove their kiosks. These retailers can’t keep the kiosks since Redbox can’t pay them. This has led to a quick decrease in the number of Redbox kiosks around.

Lawsuits from Content Providers and Business Partners

Redbox’s financial difficulties have led to legal issues with content providers and partners. They are trying to get back money for unpaid fees and royalties. This has made it harder for Redbox to stay in business and get new movies for its kiosks.


Redbox’s story warns us about change in the entertainment world. It was a leader in renting out DVDs and games. But, it couldn’t keep up with streaming. This led to a cash flow crisis.

Because of this crisis, Redbox had to close many kiosks. They couldn’t get new movies or pay their bills. This shows how important it is for companies to change with the times.

Now, Redbox’s fate is unclear. Its journey teaches us how important change is for any business. As the entertainment world changes, staying innovative is key. Companies must adapt quickly to what customers want.


What happened to Redbox kiosks?

Since being sold to Chicken Soup for the Soul Entertainment in mid-2022, Redbox has lost about 8,000 kiosks. This is nearly a quarter of their locations. This happened because the company was facing a big shortage of cash. Because of this money problem, Redbox couldn’t buy new movies or even cover its expenses.

Why has Redbox faced a rapid decline in recent years?

Streaming services like Netflix and Hulu have taken over. People now prefer watching movies instantly online. This trend has hurt Redbox’s business. They couldn’t keep up with the changing times. As a result, they faced a big shortage of money. This made it hard for Redbox to stay in business.

What challenges has Redbox’s physical media business model faced?

Redbox couldn’t easily switch to digital like Netflix has. The lack of new movies for its kiosks, along with retailers stopping their deals, has made things worse. Legal fights with partners and movie makers also added to Redbox’s problems.

Is Redbox going bankrupt?

Recent talks suggest Redbox might go bankrupt. But, the company hasn’t filed for it officially yet. The money problems and business struggles have caused them to close many kiosks. Redbox’s situation is difficult right now, and its future is unclear.