If you use the Redbox streaming service, you may have noticed that you are unable to stream the movies that you have purchased or even the free collection of movies that they offer. Earlier today, the Redbox website stopped working. Now it just displays an error message where you would normally find the free movies and movies or TV shows for sale.
For now, the issue is limited to Redbox, as Crackle, which is also owned by the same company, is still working. The exact cause of the issue is unknown, and Cord Cutters News has reached out to Redbox for comment. If we hear back, we will update our story.
But for now, if you have movies on the Redbox streaming services you’ve purchased, you’ll have to wait and see what happens. It’s likely a technical glitch, as the company just secured $8 million in new funding.
Last month, Chicken Soup for The Soul Entertainment, the parent company behind Redbox, Crackel and the eponymous streaming service, announced that the entire board of directors and executives of all of the company’s subsidiaries, except for William J. Rouhana, Jr., had been fired. This was quickly followed by news that Redbox was filing for bankruptcy.
Now, according to a report from Bloomberg, HPS has agreed to give the company an $8 million payday, but as part of the deal, Redbox’s parent company must reinstate independent directors who were fired last month. Now, the judge overseeing the bankruptcy has approved the plan.
Previously, employees were not paid and benefits such as health insurance were canceled. This loan pays employees and also funds health insurance.
The company recently missed a $4 million payment to NBCUniversal as part of a settlement over unpaid royalties. Now, the company faces a potential order to pay all $16.7 million it owes NBCUniversal, amid mounting questions about the company’s future. NBCUniversal filed a lawsuit alleging that Redbox had failed to pay royalties. It agreed to a payment plan but missed its first payment.
Chicken Soup for The Soul Entertainment is in a tough spot after acquiring Redbox in 2022 for $50 million in stock and taking on $325 million in debt. Add to that a shaky media landscape with declining ad revenue and quarterly losses, and the company’s future looks highly uncertain. In August, CEO Rouhana said the company was conducting a strategic review to assess its opportunities, which in business terms means putting itself up for sale.
Last year, Chicken Soup for The Soul Entertainment announced that there were active discussions about a possible sale, but so far nothing has come of these discussions.
Like many media companies, the company has been hit by a soft advertising market that has had a negative impact on revenue. For a company that relies heavily on ad-supported streaming, this market should have a negative impact on the service. At this point, the company seems confident that they can work through these issues and pay their partners. We’ll just have to wait and see what happens.