Redbox finds a buyer
Chicken Soup for the Soul Entertainment, owner of VOD networks Crackle and Popcornflix, has scooped up Redbox Entertainment for $375M in stock and debt. Redbox was once an industry heavyweight in physical DVD rentals through namesake red rental kiosks at grocery and convenience stores. In recent years, Redbox tried pivoting to digital transactional and streaming models. However, after going public in October 2021, the company suffered significant revenue declines driven by pandemic-induced shortage of new release titles.
The NPD Take:
- The Redbox acquisition brings the opportunity for significant advertising revenue gains for Chicken Soup for the Soul and the potential to combine several of their platforms into one mass offering leveraging the recognition and scope of the Redbox brand.
- Leaning into free and ad-supported video continues to gain momentum. However in order to stand out more services may look to consolidate to gain leverage over some of the major players in this space.
Disney+ increases subscriber base while considering new plans
Disney+ grew its subscriber base by 8 million globally, driven by the US and Canada where it added about 7 million. The streamer has nearly 88 million subscribers worldwide of which about half are in North America. The growth is coming at the expense of continued losses due to high production costs and advertising. As such, Disney is exploring new subscription plans including adding an ad-supported tier which could launch later this year. ESPN+ and Hulu also added subscribers in the quarter.
The NPD Take:
- The latest growth in subscriber numbers for Disney+ shows the service remains in high demand, driven by franchises consumers are interested and invested in.
- Offering different tiers of access, including lower-priced ad-supported, seems to be the strategy du-jour to retain and attract cost-conscious consumers.
Netflix exploring live streaming
Netflix is considering adding live streaming capabilities to its service. The move would likely first be tested with unscripted series, such as competition shows and stand-up specials. While the change is still in early development, if the strategy is successful the move could open the door to further content expansion such as sports.
The NPD Take:
- Adding live streaming could help mix-up maturing viewing habits and drive more regular engagement on the service as consumers may be reaching the peak of binge viewing.
- Just as on-demand binge watching uprooted traditional linear viewing, it seems that what’s old is new again as streaming services explore returning to more traditional viewing patterns with weekly releases, ads, and live streaming.