Redbox Files for Bankruptcy
(ABC 6 News) – Redbox, once a dominant force in DVD rentals, filed for bankruptcy last month, leaving
customers with questions about the movies they purchased through the service. The company’s
kiosks are no longer operational, and its app has been removed from streaming platforms like
Roku, along with any content users had previously purchased.
In case you weren’t aware, in addition to renting DVDs for $1 (later $1.75) a night, the company
had a streaming platform that allowed customers to purchase movies and watch them using
apps on smart TVs, Roku, and other streaming devices.
Now that Redbox has filed for bankruptcy, none of the apps are working and the libraries of
purchased movies and shows are no longer available.
This situation highlights a common misconception about digital purchases: buying a movie
online doesn’t mean you own it. When purchasing through platforms like Amazon Prime, Apple,
or Google, you’re essentially buying a license to view the content. If the company goes out of
business or their agreement with the movie studio ends, your purchased movie could disappear.
For example, if you buy a movie on Amazon Prime, you can watch it as often as you like, but it
could be removed from your library if Amazon’s deal with the studio expires. The same applies if
you cancel your Amazon Prime subscription.
While major platforms like Amazon and Google are unlikely to go bankrupt, their licensing
agreements can and do change. This means that your digital movie collection is more
vulnerable than you might think.
In the case of Redbox, customers who rented DVDs before the kiosks shut down have no way
to return them. The company has not provided guidance on this issue, and customer support is
unavailable. It is recommended that customers return the DVDs to avoid further credit card
charges. If you can find a working kiosk that is.
This serves as a reminder to consumers to be aware of the terms and conditions when making
digital purchases. It’s also a cautionary tale about the potential pitfalls of relying on digital
content libraries.