If you live in a large metropolitan area with high-speed internet access, you will be forgiven for forgetting the existence of Redbox. But a company that rents out new releases from big red kiosks in grocery stores is still alive and kicking, and Variety reports it plans to go public after being acquired by a special purpose vehicle (SPAC), Seaport Global Acquisition Corp. The value of the new company is reported to be $ 693 million.
Redbox has managed to work fully with Netflix, Disney Plus, HBO Max and all the other Behemoth streaming devices that work on set-top boxes, new TVs and robust internet. According to Redbox, about 70 percent of customers are classified as “late adopters.” They’re people who still use CRT TVs, collide with DSL, and if they’re anything like Redbox users, they dazzle cloud-based computing suspiciously.
Despite focusing on what seems to be my mom and her best friend, the company has begun to branch out from the kiosks. In In February 2020, it launched an ad-supported streaming service and added subscription videos in December 2020.
Redbox said Variety it plans to use public trade cash to pay off debt and expand its VOD services. With only 40,000 kiosks and 39 million subscribers, it needs to make a rapid expansion to stay ahead of its competitors. Launched in 2019, Disney Plus is more than 100 million subscribers. Netflix, launched by Redbox as a competitor in 2002, is over 200 million.
Redbox is expected to be announced in the third quarter of this year under the label “RDBX”.