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Redbox’s new owner is the company that saved Crackle from Sony

Redbox has tried to stay relevant over the years with streaming video on demand and free live TV, but it’s still best known as a company offering movie disc rentals at newsstands. However, he may soon have a better chance of shaking that reputation. Chicken Soup for the Soul Entertainment, the company that rebooted Sony’s Crackle service, is acquiring Redbox in an all-stock deal. The move will help Chicken Soup create an ad-supported streaming service for “value-conscious customers” and “accelerate” Redbox’s move from physical to digital.

The deal is expected to close in the second half of 2022. Chicken Soup will own a 76.5% stake, while Redbox will own the remainder. There was no mention of a change in management, but Chicken Soup won’t be changing its name as part of the purchase.

It might seem unusual to buy a company known for supporting dwindling video formats. However, chicken soup has a lot to gain. The new owner will have access to tens of millions of potential customers, including 40 million Redbox Perks members – even if only a fraction embraces streaming, that’s still a large potential audience. While we wouldn’t expect it to challenge heavyweights like Amazon or Netflix, it could help Redbox and Chicken Soup compete with free alternatives like Tubi or The Roku Channel.