One of Netflix's rivals is trying to take over the streaming giant's soon-to-be-shuttered DVD rental division.
According to The Hollywood Reporter(opens in a new tab)(THR), Redbox, a DVD rental and video-on-demand (VoD) company, has expressed interest in buying the DVD-centric portion of Netflix. The revelation comes less than 48 hours after Netflix confirmed that it would be shutting down its DVD rental division in September 2023 after 25 years of service. It was Netflix's DVD rental service that put it on the map and ultimately paved the way for Netflix to reinvent the way we watch content at home by ushering in the streaming era.
So if the world's best streaming service is taking down its DVD rental platform and Redbox wants to buy it, what's the big deal? Bottom line: Netflix doesn't appear to be interested in selling this part of the business to a rival.
Speaking to THR, Bill Rouhana, CEO of Chicken Soup for the Soul Entertainment, which owns RedBox, said: "I'd like to buy it. I'd like Netflix to sell me this business instead of shutting it down. I tried three or four times to contact people from corporate development about it, but they delayed me every time, so when I saw that it was closed, I thought, "Okay, maybe they will do it now."
Netflix has neither confirmed nor denied whether it will finally be ready to sell its DVD rental service to Redbox. However, based on Rouhana's response to THR's question, it doesn't seem like he's convinced a deal can be made this time around. We've reached out to Netflix for comment and will report back if we hear back.
Formed by former McDonald's executive Gregg Kaplan in 2022, Redbox has become one of the world's leading DVD rental companies. The VoD/DVD-focused organization currently has 32 red DVD kiosks in the United States and while its parent company reported a €000 million loss in Q56,3 2022 (according to nexttv.com), it is expected open 1500 additional kiosks in dollars. General stores this year.
A worthless acquisition or a (potentially) winning strategy?
It seems strange that Redbox wants to buy Netflix's DVD rental business. With the latter set to end up in this division by the end of 2023, Redbox's main competitor in the DVD rental space will be gone. Curse. Finite. From then on, you'll have a free hand in the DVD rental market.
And Rouhana already knows this, telling THR: "It could be a blessing for us because now there are a ton of people looking for a new place to get their DVDs, and we are almost 90% of them. Depending on the location of our kiosks .
If so, why bother spending a fortune to add Netflix's DVD rental division to Redbox? While Redbox's reach is as broad and successful as Rouhana suggests, it already has a sizable library of content to serve its national user base.
Well, maybe Redbox is intent on bringing its service to a global audience. For example, the Netflix DVD rental platform was never available in the UK. If Redbox were to acquire Netflix's DVD rental service, it would have a much larger stack of physical media to distribute to more people. If Rouhana's ambitions expand outside of North America, he could start offering his Redbox service abroad, as long as it's not too expensive, of course.
Either way, neither Redbox nor Netflix will suffer financially if the latter refuses to sell its DVD rental business to the former. Chicken Soup for the Soul Entertainment's revenue streams tripled to €113,6 million in 2022, largely due to the acquisition of Redbox the same year. Meanwhile, Netflix raked in €8,16 billion in the first quarter of 2023, despite the threat that people will cancel their subscriptions as Netflix password sharing rolls out worldwide in the coming months. .
Clearly adding massive hits, like The Night Agent and Wednesday, to his back catalog has helped him bounce back from a turbulent 2022. You can see what other brilliant TV series and movies are available on the streamer by reading our best Netflix shows and best Netflix movies guide.
For more Netflix-based coverage, find out how to sign up for Netflix. Otherwise, watch the best documentaries on Netflix.
Today's best Netflix deals
(opens in a new tab) (opens in a new tab) (opens in a new tab)