RedBox partners with TikTok for short-form videos on DVD kiosks

Redbox owner Chicken Soup for the Soul has struck a deal with video-centric social media platform TikTok to offer short-form content across digital screens atop 3,000 RedBox DVD kiosks.

The partnership will open up new advertising opportunities for RedBox and TikTok, with marketers able to purchase inventory alongside the kiosk's video content, the companies said in a statement on Wednesday.

Philippe Guelton, the chief revenue officer at Chicken Soup for the Soul's sales division Crackle Connex, said the deal allows it to lure in shoppers with high-quality TikTok content interspersed with ad messaging.

"Our Redbox kiosks are in high-traffic locations where millions of people frequently shop, such as grocery stores or value retailers," Guelton said in a statement. "We look forward to working with TikTok on expanding this partnership as our [digital out-of-home, or DOOH] network expands."

The partnership covers around 10% of the approximately 35,000 Redbox kiosks on the market. Guelton previously told StreamTV Insider that the company had installed around 3,000 high-definition screens on top of kiosks for the purpose of digital advertising for branded content and ads, rather than the screens people interact with to rent DVDs. The announcement released on Wednesday disclose locations for the Redbox kiosks that would get the TikTok content, and it wasn't clear how TikTok was securing the rights to showcase its user-generated videos in public spaces or whether creators would be compensated accordingly.

"People come to TikTok to experience the entertainment, joy, and creativity of our community, and we are excited to expand that experience to Redbox kiosks," Dan Page, a TikTok executive in charge of global distribution across "new screen" experiences, said on Wednesday. "This partnership allows us to bring together the power of our exceptional content with the high-visibility of Redbox kiosk locations, creating an effective and fresh approach to advertising."

The partnership is coming together at a time when marketers are looking for new and novel ways to reach consumers and are increasingly leveraging connected experiences to do so. Earlier this week, Roku said it would soon allow users of its streaming TV hardware to purchase goods through Shopify, with the experience powered by Roku's "Action Ads" feature. The company has similar deals with DoorDash, Instacart, Best Buy and Walmart.

Roku has also focused on increasing user engagement across its free, ad-supported streaming service, the Roku Channel, which is pre-installed on all newer-model Roku devices and smart TV sets, and which recently became available on Android TV-powered devices, too.

RedBox also operates a free streaming service within its app that is supported by ads (parent company Chicken Soup for the Soul also owns the free streaming service Crackle). With its TikTok deal, RedBox can now give marketers the option of targeting consumers in-home through their streaming service, out-of-home through kiosks, or both.

Chicken Soup for the Soul acquired RedBox last August. In May, the company said it lost $38.5 million during the first three months of the year on revenue of $109.6 million.