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Business Operations Business Models

How Does Redbox Make Money (Business and Revenue Model)

The Redbox business model

How Does Redbox Make Money?
Here’s what you should know:
  • What is Redbox, and how does Redbox work?
  • How does Redbox make money?
  • Redbox Kiosks (DVD Rentals and Sales)
  • Subscription Service (Redbox Plus)
  • Redbox On Demand
  • Advertising Revenue
  • Installations, Merchandising, and Break-Fixes (Service Revenue)
  • Redbox Subsidiaries, Acquisitions, and Exits
  • Redbox profit and revenue
  • What is the Redbox business and revenue model?
  • Redbox funding, net worth, and market cap

How does Redbox make money? Here is a full, in depth, breakdown of their five (5) revenue streams and the different products and services they offer, as well as the Redbox business model, their profit and revenue, and how Redbox works.

What is Redbox, and how does Redbox work?

Redbox is a movie rental, purchase, and on demand streaming company.

Founded in 2002 by Gregg Kaplan, Redbox began trading on the NASDAQ on October 25, 2021, under the ticker symbol “RDBX”.

Now, Redbox has roughly 41,000 self-service kiosks nationwide and more than 40 million customers across all the services they offer.

How does Redbox work? Users can watch Redbox movies in a few different ways; by finding a nearby kiosk, visiting their website, or by downloading their mobile app on the Apple App Store or Google Play store.

Once done – users can rent, purchase and or stream from more than 8,000 movies in their catalog (depending on the platform).

Some of Redbox’s competitors include NetflixRokuHuluYouTube TV, Pluto TV, Tubi TV, Peacock, Sling TV, and other streaming platforms.

Redbox App in Apple App Store | Redbox Business Model | How Does Redbox Make Money? | How Does Redbox Work?
Source: Apple App Store | Redbox

How does Redbox make money?

According to Redbox, the company has more than 41,000 self-service kiosk locations, as well as over 40 million customers.

So how does Redbox make money off of all those kiosks and customers?

Below is a breakdown of how much money Redbox makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 5 ways of how Redbox makes money (in 2022):

Redbox has a revenue model that makes money in five (5) ways; through the DVD rentals and sales at kiosks, subscription revenue, advertising revenue, Redbox On Demand, and other kiosk B2B services.

#1. Redbox Kiosks (DVD Rentals and Sales)

Redbox makes most of its money through DVD rental fees and sales it makes at its self-serve kiosks around the country.

As noted above, Redbox has more than 150 retail partners that have over 41,000 self-service kiosk locations. Each holding more than 600 DVDs and have between 70 to 200 titles, all varying in price. Which you can see below.

How much do Redbox movies cost?

  • DVD Rentals start at $0.99 per 24 hours (late fees thereafter)
  • Used DVD Purchases start at $3.99
How much do Redbox movies cost? | Redbox Business Model | How Does Redbox Make Money? | How Does Redbox Work?
Source: Redbox

Note: Redbox also makes money from late fees and lost DVDs. According to Redbox, late fees cost the initial rental amount for every day that its late. And lost DVDs cost the inital rental amount x 17 days (the maximum rental period).

#2. Subscription Service (Redbox Plus)

Another kiosk revenue stream that makes money for Redbox is through its subscription service, Redbox Plus.

Redbox Plus is an alternative to “paying per rental” at the kiosk. With Plus, customers can get up to 12 to 24 free 1-night rentals per year (depending on the plan) as well as a 3-hour extended return time at no extra charge.

Redbox Subscription Cost:

  • $9.99 to $19.99 per year depending on the plan

#3. Redbox On Demand

In addition to all of the ways Redbox makes money from its kiosks, they also have an online version of their kiosks they call Redbox On Demand.

Redbox On Demand does not operate much differently than their in-person kiosks, other than a wider selection of movies available and steeper DVD rental / purchase prices. Which you can see below.

Redbox On Demand Price:

  • Rent On Demand starts at $3.99
  • Buy On Demand starts at $9.99
Redbox On Demand Price | Redbox Business Model | How Does Redbox Make Money? | How Does Redbox Work?
Source: Redbox

Note: Redbox On Demand costs more than Redbox kiosks. An estimated 2-3x more.

#4. Advertising Revenue (3 different ways)

Redbox makes money from its ad revenue in three (3) separate ways;

  1. third party ads (through the website, emails, and in-app),

  2. ads from Redbox Free Live TV commercial breaks, and

  3. display and video ads shown at the kiosks

When broken down, each Redbox product / platform generates millions of users and traffic. It is as follows; an estimated 400 million weekly impressions at their kiosks, 45 million mobile app downloads, 45 million e-mail subscribers, and 5 million SMS subscribers.

Note: Collectively, all of that traffic leads to more impressions on their ads. Which results in more ad dollars for Redbox.

#5. Installations, Merchandising, and Break-Fixes (Service Revenue)

Lastly, to add to Redbox’s kiosk revenues, Redbox also makes money by providing B2B kiosk services to its 150+ retail partners.

These services include things like installing the kiosks at the locations, merchandising, and fixing ongoing breaks / maintenance of those kiosks. Although it’s unclear how much money Redbox charges its retailers for these B2B services.

Redbox Subsidiaries, Acquisitions, and Exits

Aside from Redbox being acquired by Chicken Soup for the Soul Entertainment for $375 million, Redbox has had its own fair share of investments as well.

To date, Redbox Automated Retail, LLC. (Redbox) has made a total of 1 investment.

Redbox profit and revenue

In 2021, Redbox reported $288.54 million in revenue.

Note: Because Redbox Automated Retail, LLC. (Redbox) is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Redbox’s publicly released financial reports, including annual reports, through Redbox’s investor section on their website.

What is the Redbox business and revenue model?

Redbox makes money through a few revenue models that they combine within their company, they are:

  • Transaction based business model
  • Subscription business model
  • Advertising revenue model
  • B2B2C (partnerships) business model

Redbox funding, net worth, and market cap

According to Redbox’s Crunchbase profile, Pluto TV has raised $50 million over 1 round and has a market cap of $350 million as of June 2022.

On May 11, 2022, Redbox was acquired by Chicken Soup for the Soul Entertainment for $375 million, per reports.