Redbox Plans to Run Ads on 4,000 DVD Kiosks

Redbox plans to run digital video ads on nearly 4,000 of its trademark DVD rental kiosks across the U.S. — inventory it hopes to sell to Hollywood studios as well as national and local marketers.

The company announced it has already deployed digital video signage on the top of more than 2,000 kiosks so far, through a partnership with Velocity, a managed information-tech services company that will operate the ad network. Direct ad sales for the new screens are being handled by Redbox in partnership with Screenvision Media, and through connected programmatic exchanges. The 4,000 number represents about 10% of Redbox’s network of 40,000 kiosks across the U.S.

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In October, Redbox Entertainment became a publicly traded company after merging with a special purpose acquisition company (SPAC). Redbox wants to show it can generate incremental revenue from its large kiosk footprint, even as it pivots toward a streaming future.

Velocity, based in Holland, Ohio, entered the digital-out-of-home media in the retail grocery segment through its September 2020 acquisition of Impax Media, a checkout aisle digital signage network.

“The addition of Velocity screens gives us a powerful new way to promote new release titles with our content partners including all major Hollywood studios, as well as provide brands and studios a uniquely customizable out of home campaign, while also promoting our free streaming service and Redbox Entertainment originals in high trafficked locations,” Redbox CEO Galen Smith said in a statement.

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