Redbox And TikTok Set Deal For Videos To Stream On 3,000 Kiosks

Redbox parent Chicken Soup for the Soul Entertainment has set a deal with TikTok that will see the platform’s short-form videos stream on screens atop some 3,000 Redbox kiosks nationwide.

Third-party brands will also have their ads run alongside the TikTok videos via Chicken Soup’s ad platform Crackle Connex.

The agreement covers roughly 10% of the total network of Redbox kiosks, which are generally located outside of grocery, convenience and big box retail stores. The out-of-home ad deal is part of a growing effort across the industry to identify alternatives to linear TV and place brand messages in venues like gas stations, elevators and other locations.

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For Chicken Soup, the pact comes as the company is laboring to fully integrate Redbox, which it acquired in mid-2022 for $375 million. Most of the acquisition came in the form of assumption of debt. Even though the debt has no repayments in the next several quarters, the amount of it has spooked Wall Street, with shares plunging to near $1 after trading above $12 at the time the transaction closed last summer. While Redbox had expanded into on-demand streaming and FAST prior to the acquisition, its core business of transactional DVD and Blu-ray rentals had suffered along with the rest of the movie business during Covid. Revenue has started to rebound in recent months thanks to potent new-release titles like The Super-Mario Bros. Movie.

As of February 2023, TikTok said it had 150 million monthly active users in the U.S. The subsidiary of China-based ByteDance has drawn scrutiny for its data practices and structural ties to the Chinese government, but its growth has been undeniable. CEO Shou Zi Chew recently installed former longtime Walt Disney Co. communications chief Zenia Mucha in a senior role as the company continues its march on U.S. consumers. TikTok has recently participated in the NewFronts, pitching digital ad buyers on the potency of its platform as it also talks with a number of smart-TV and connected-device makers in a bid to make inroads in the living room.

“TikTok is the go-to destination for short-form video consumption by over a billion people globally,” said Philippe Guelton, chief revenue officer of Crackle Connex. “This new partnership provides advertisers a unique opportunity to reach new audiences and drive engagement. Our Redbox kiosks are in high-traffic locations where millions of people frequently shop, such as grocery stores or value retailers. We look forward to working with TikTok on expanding this partnership as our DOOH network expands.”

Dan Page, Head of Global Distribution, New Screens at TikTok, said the 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.”

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