Redbox And Lionsgate Complete Multi-Year Distribution Agreement, Boosting Entertainment Arm And Filling Streaming Pipeline
EXCLUSIVE: Redbox has signed a multi-year distribution agreement with Lionsgate for the release of RedBox Entertainment titles as well as stocking Red box streaming services with Red Box library fare.
The entertainment division of the longtime operator of DVD kiosks, which was founded in 2019, is an important part of The Companys expansion plan. It is acquiring, producing, and releasing a variety of genre films, with projections of 36 releases yearly. It relies on data from nearly 20 years of movie transactions since the firms inception to guide its development.
Lionsgate will display Redbox films in home entertainment windows as well as subscription video on demand licensing for select titles.
The transaction comes ahead of a planned IPO for Redbox later this month. In the event of a few last administrative steps and re-election of shareholders, the business will likely begin trading publicly in formally as part of the SPAC transaction. The merger with Seaport Global Acquisition Corp will result in an enterprise value of $693 million, according to the firm.
Redbox Entertainments recent releases include Capone with Tom Hardy, Shadow in the Cloud, starring Chlo Grace Moretz and Nick Robinson, and SAS: Red Notice with Sam Heughan and Ruby Rose. The Last Son, a Western starring Colson Baker (aka musician Machine Gun Kelly) and Heather Graham; Bandit, with Josh Duhamel and Mel Gibson; and Muti, which stars Morgan Freeman and Cole Hauser, are among the films on the upcoming slate. Films are released across all entertainment distribution points, not just the companys 40,000 kiosks.
Redbox began in 2002 as a retailer of DVDs and video game discs, but has since grown significantly. While CEO Galen Smith claims the kiosks will continue to be a significant part of the company's operations, the business has invested in streaming with its Free Live TV service. Redbox Entertainment has also become a focus, setting up partnerships with the likes of John Wick producer Basil Iwanyk. His Thunder Road will in 2020 join forces with Redbox to establish Asbury Park Pictures, a studio specializing in modestly priced action films.
Redbox has a wide range of films coming in 2022 and beyond, and were excited to work with Lionsgate to identify those that are suited for their distribution model, Smith said. Ron Schwartz and his team have been wonderful partners throughout the years, and we're delighted to extend our relationship to include their world-class distribution prowess in order to enhance value for both companies, says Schwantz.
In addition to providing support to Redbox's burgeoning entertainment business, the agreement also includes the licensing of films and TV series from the 17,000-title Lionsgate library to support Red Box' streaming efforts. Redbox has quickly become a prominent player in both AVOD and free, amiable television, or FAST. In the FAST strategy, linear channels are made available live, a plus for cord-cutters. Pluto TV, a ViacomCBS station, is perhaps the original FAST, and the method has been adopted by Roku, Amazon Fire TV (Amazon Fire Television), Tubi, as well as NBCUniversals Peacock.
Lionsgates long-standing relationship with Redbox has created significant value for both our businesses, according to Schwartz, Lion's Gate Motion Picture Group president of worldwide distribution. That collaboration has resulted in a multifaceted distribution relationship across home entertainment, SVOD, and AVOD platforms, which allows us to continue to expand our content offerings to our consumers.