Redbox

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Redbox

Basic Information
Release Year	2002
Product Type	Video rental and streaming services
In Production	No
Official Website	https://web.archive.org/web/20241001080426/https://www.redbox.com/

Redbox Automated Retail, LLC, was a company founded in 2002 which primarily focused on kiosks, often found in grocery stores or gas stations, where customers could rent DVDs or video games. Redbox also offered a streaming app, where customers could purchase and stream content. In June 2024, its parent company filed for bankruptcy, and the following month, the company was liquidated.

Consumer impact summary

Overview of concerns that arise from the company's conduct regarding (if applicable):

• User Freedom
• User Privacy
• Business Model
• Market Control

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Incidents

Removal of purchased content (2024)

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.

A Roku user who claimed they lost $10,000 worth of content on RedBox.

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

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 issue is not limited to Redbox: a similar result may occur with any digital-media company that either goes bankrupt or 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.

References

1. https://www.reddit.com/r/movies/comments/1dxn7p9/a_redbox_retrospective_from_an_employee/
2. https://www.theverge.com/2024/6/21/24183454/redbox-universal-missed-payment-17-million
3. http://web.archive.org/web/20240927064054/https://www.redbox.com/transactionterms