Editing Redbox

Background

Redbox, before bankruptcy, was a company which primarily focused on kiosks, often found in grocery stores or gas stations, where you could rent a DVD or video game. They also offered a streaming app, where customers could purchase and stream content.

The Incident

RedBox found itself bankrupt, largely due to mismanagement from executives, and shut down all of its services, including not just the RedBox kiosks, but also their streaming platform.

From the shutdown, all users who had purchased content could not download or view any content, including one Roku user who claims that they lost approximately $10,000 of media {citation/media}.

RedBox did not redefine terms such as “own” or “purchase” in their terms of service like Sony {hyperlink}. RedBox only limits in their terms of service how many devices purchased content can be downloaded to {citation}.

Broader Implications

Since this content was purchased digitally and nothing is guaranteed through physical ownership, companies are able to revoke, or suddenly fail to provide, legitimately purchased content. Any consumer who bought content on RedBox, using legitimate avenues to view the content, are ultimately punished for viewing content the right way, which incentivizes illegal means of viewing content.

This is not just an issue with RedBox; any company that provides digital media that goes bankrupt or just does not honor terms such as “purchase” or “own”. Every large company that provides digital content engages, or has the capacity to engage, in revoking purchased content, which either were or were not defined in the terms of service.