“This new deal allows Redbox to lean further into Lionsgate content in a more impactful way across our physical and digital offerings,” Redbox CEO Galen Smith said. “We’re thankful for the continued partnership that allows us to offer consumers more choice when planning a meaningful movie night with friends and family.”
“We greatly value our long-term partnership with Redbox and are happy to be extending our relationship,” said Lionsgate President of Worldwide Home Entertainment Ron Schwartz said. “We remain committed to making our portfolio of premium content available to consumers at the Redbox kiosks and on their digital platform.”
While physical disc sales continue to decline overall, Redbox has a prominent position in the space thanks to its more than 41,500 kiosks nationwide. The kiosks offer DVD, Blu-ray and Video Game rentals and purchases and also enable on-demand streaming across devices.
News of the deal follows word on Tuesday that Lionsgate has set a two-year film output deal with Hulu and FX Networks.
According to the Digital Entertainment Group, the entire physical disc rental market fell 15% to a bit less than $400 million in the first quarter. Revenue in the kiosk segment declined 13% to $244 million.
Digital rentals inched up 3% in the quarter, but physical decline offset the digital growth, with the total rental market off 6% to $963 million.
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