Redbox’s free, ad-supported streaming television (FAST) service has reached 100 linear channels, only a few months later than it had originally intended on hitting that mark.
Redbox Free Live TV officially launched with nearly 30 channels in February 2020 and shared plans of totaling 100 channels by the end of last year. After the company’s most recent additions, it has finally achieved its goal. In addition, the company said it added new free VOD content from partners including Shout! Factory, Legendary Television, Magnolia Pictures and Relativity Media.
“We know audiences are hungry for entertainment, and we’ve seen steady growth across Free Live TV and Free On Demand since they were launched in 2020,” said Jason Kwong, chief strategy and digital officer at Redbox, in a statement. “Redbox is building a home for audiences looking for the widest possible selection of entertainment at every price point, including free.”
The expansion of Redbox’s digital business comes as the company is pursuing an agreement to combine with Seaport Global Acquisition Corp. and go public. The transaction is expected to close in the third quarter of 2021 and will result in Redbox being listed on the Nasdaq under the ticker RDBX. The company said it plans to use the capital from the transaction to invest in innovation, pay down debt and accelerate its digital transformation.
Redbox wants to double its revenue over the next two years and it hopes to do so by getting its 40 million customers to move beyond disc rentals and try its streaming platform, according to documents obtained by S&P Global. The company also wants to grow revenue through streaming partnerships with Netflix and Hulu along with a kiosk maintenance business that partners with Amazon's pick-up lockers.
“Streaming analysts questioned the feasibility of Redbox's revenue goals, saying the company would be hard-pressed to achieve such growth through its digital business alone. But they acknowledged the value of Redbox's ready-made customer base,” wrote S&P Global’s Joseph Williams.