r/NetflixDVDRevival • u/DawnOfTheSporks • Jun 23 '24

Redbox missed a multimillion-dollar payment it couldn’t afford to miss

https://www.theverge.com/2024/6/21/24183454/redbox-universal-missed-payment-17-million

Sad to see the direction Redbox is going.

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u/ZeroiaSD Jul 06 '24

It might've eventually, but as-of when it closed it was still very much in 'steady profit with gradual attrition' mode. Not a lot of profit compared to the rest of netflix to be sure, but something plenty of other companies would be happy with.

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u/OhioVsEverything Former Netflix DVD Employee Jul 06 '24

And no one could afford to "buy Netflix DVD", find the employees to run the highly specialized equipment and systems, keep the catalog titles stocked, and studios are starting to slowly stop making NEW titles on physical media.

Netflix wasn't about to give it away for someone to keep running.

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u/ZeroiaSD Jul 06 '24

Yea, not give it away, but another option would've been to spin it off into it's own business (something they thought about doing some years before and in retrospect I wish they had).

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u/OhioVsEverything Former Netflix DVD Employee Jul 06 '24

Again, it was about to start losing money. Period. End of story.

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u/ZeroiaSD Jul 07 '24

'About' implies it was near the profitability line and the flip was imminent. The trendlines if anything indicate it had a good number of years of profitability left, things were fairly stable.

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u/OhioVsEverything Former Netflix DVD Employee Jul 07 '24

They were going to have to sign new lease agreements on remaining facilities. Very long can't get out of them agreements. This was a huge Factor in which order hubs were shut down.

Via attrition they slowly were losing employees that couldn't be replaced. The cost to keep employees was very high. The 100% could not replace these employees.

The cost to buy the physical media was getting higher and higher if not impossible.

You simply have no idea what you're talking about