Established in 2019, the entertainment division of the longtime operator of DVD kiosks is an important part of the company’s expansion plan. It is acquiring, producing and releasing a wide variety of films with plans to reach 36 releases in a year. It relies on data from nearly 20 years of movie transactions since the company’s emergence to inform its buildout.
Lionsgate will take Redbox movies out of the home entertainment window as well as subscription video on demand licensing for select titles.
The deal comes ahead of a planned IPO for Redbox later this month. Pending some final administrative steps and a shareholder vote, the company should begin trading publicly in a SPAC transaction. company has indicated an enterprise value of $693 million Seaport will be the result of a collaboration with Global Acquisition Corp.
Recent releases from Redbox Entertainment include capone with Tom Hardy; shadow in the cloud, starring Chlo Grace Moretz and Nick Robinson; And SAS: Red Notice With Sam Heughan and Ruby Rose. Films on the upcoming slate are The Last Sun, a Western starring Colson Baker (aka composer Machine Gun Kelly) and Heather Graham; Bandit, with Josh Duhamel and Mel Gibson; And Muti Morgan Freeman and Cole Hauser). Movies are pushed to all entertainment distribution points, not just the company’s network of nearly 40,000 kiosks.
Founded in 2002 as a component for DVD and video game discs, Redbox has evolved significantly in recent years. While CEO Galen Smith says Kiosks will continue to play an important role, the company has invested in streaming with its free live TV service. Redbox Entertainment has also become a major area of focus, establishing deals with the likes of john wick Producer Basil Ivanik. His Thunder Road Launched production label Asbury Park Pictures in association with Redbox in 2020, specialist in moderate budget action films.
“Redbox has a great slate of movies coming out in 2022 and beyond, and we are excited to be working with Lionsgate to identify those that are a great fit for their distribution model,” Smith said. “Ron Schwartz and his team have been fantastic partners over the years, and we are excited to expand our relationship to harness their world-class distribution skills to create value for both companies.”
In addition to providing support for Redbox’s growing entertainment division, the agreement also covers licensing of movies and TV series from the 17,000-title Lionsgate library to feed Redbox’s streaming efforts. Redbox has become an emerging player in both ad-supported video on demand, or AVOD, as well as free, ad-supported television, or FAST. In the FAST strategy, linear channels are made available live, a draw for cord-cutters. ViacomCBS outlet Pluto TV is probably the original Fast, and the strategy has been deployed by Roku, Amazon Fire TV, Tubi and NBCUniversal’s Peacock.
“Lionsgate’s long-standing partnership with Redbox has created significant value for both of our companies,” said Schwartz, Lionsgate’s President of Motion Picture Group’s worldwide distribution. “This collaboration has evolved into a multi-faceted distribution relationship across the home entertainment, SVOD and AVOD platforms that allows us to diversify our content offering to our consumers.”