According to the Wall Street Journal, there are about 24,000 abandoned Redbox kiosks many still containing movies. The company, burdened with significant debt, has found that selling off the movies and scrapping the machines might actually be more expensive than doing nothing at all.
What does this mean for the future of physical media? I explore this in my latest video.
Not all of the machines are collecting dust – some individuals have been able to acquire them, mostly through deals with local junk haulers. There’s even a former Redbox software engineer who has shared backups of the vending machines’ operating systems on a subreddit, allowing people to potentially repurpose the kiosks for their own use.
Interestingly, some kiosks are still powered on and occasionally dispensing movies without charge. One individual documented this phenomenon, walking away with free movies after his credit card wasn’t charged but movies were spit out nonetheless.
Redbox’s financial troubles have also affected businesses that hosted the machines, including Walgreens, which is owed millions in unpaid commissions and operational costs. Despite these machines costing Walgreens about $184,000 a month to keep powered, many haven’t been turned off, potentially in an effort to boost their bankruptcy claim. Other chains face similar issues, as the removal of these kiosks comes with the added cost of safely disposing of their coolant systems.
The broader context here reveals that physical media sales have been in steady decline. According to the Digital Entertainment Group’s market data, sales of DVDs and Blu-rays have dropped by 25% from 2022 to 2023, and the first half of 2024 shows a continuing downward trend. Despite these numbers, there is still a glimmer of hope for physical media fans: sales of 4K Ultra HD Blu-rays have grown by 15%, driven by releases like Oppenheimer and collectible formats such as steelbooks.
This enthusiasm mirrors the rise of LaserDisc in the 1990s. While most consumers opted for the lower-quality VHS format, serious collectors flocked to LaserDisc for its superior video and audio.
The niche market for physical media may shrink, but it’s far from disappearing entirely. Even Nintendo has committed to continuing physical game releases for its new consoles, recognizing that many consumers still prefer tangible products that can be resold.
As Redbox fades, the niche market for physical media soldiers on. There’s still demand, especially from collectors and enthusiasts who value the quality and collectability that digital media just can’t offer. While the era of mass-market DVDs and Blu-rays might be ending, the story of physical media isn’t quite over yet.