Farewell to Redbox: The End of an Era for DVD Kiosks
Source: Mario Tama / Getty
Ladies and gentlemen, gather ’round for a nostalgic trip down memory lane as we bid adieu to an icon of the early 2000s. Yes, it’s true—the beloved Redbox DVD rental kiosks are set to become a thing of the past. The parent company, Chicken Soup for the Soul Entertainment, has decided to pull the plug on Redbox after filing for Chapter 7 bankruptcy.
After initially filing for Chapter 11 bankruptcy in late June, the company switched gears to Chapter 7, indicating a full liquidation. According to reports from Deadline, the company initially hoped to stay afloat by selling some assets and keeping about 100 employees. However, the final decision was to let all 1,000 employees go and shut down all 24,000 kiosks.
US bankruptcy judge Thomas Horan laid it out plainly, stating that there was no way to continue paying employees or bills. Redbox couldn’t pay employees for nearly a month, prompting a desperate $8 million loan from the parent company just to cover salaries and restore medical benefits.
For those who fondly remember stopping by a Redbox kiosk at the grocery store to snag the latest movie release, this news hits hard. Despite their efforts, Redbox couldn’t keep up with the streaming giants. With Netflix, Hulu, Disney+, and countless others dominating the market, physical rentals lost their charm. Bankruptcy proceedings revealed that Redbox’s payroll obligations exceeded its earnings, sealing its fate.
Nevertheless, Redbox served a niche market—those without reliable internet—who will now miss the joy of picking up a DVD during a grocery run.
RIP Redbox.
