Redbox links up with Roku, Walmart to offer streaming credits

Redbox has signed a promotional agreement with Roku in hopes of attracting more users to ad-supported and transactional streaming platform.

Starting now through mid-2022, consumers will receive a $5 streaming code on Roku players sold exclusively at Walmart. Consumers can redeem the code—which can be used for movie rentals—by downloading the Redbox app via their Roku player.

“Roku has been a great partner on this unique promotion which gives us the ability to attract a large new audience to our streaming app,” said Redbox CEO Galen Smith in a statement. “We’ve been rapidly expanding our free streaming services, and I know consumers will find a lot of great content to enjoy.”

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Redbox—which is preparing to go public—shared with industry analysts its roadmap for expanding its digital business, which includes launching an integrated channel store for subscription streaming and premium video services by the second quarter of 2022. Redbox plans to partner with third-party services to provide a unified billing and playback platform along with access to its large customer base—which includes 39 million total members and 13 million active members—in exchange for a share of recurring subscription revenues. The company has already market tested bundling Redbox and Showtime OTT together and said the more than 62,000 people bought in.

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.