ROKU and Amazon Fire TV fans are set to lose three free streaming apps in the wake of a devastating bankruptcy declaration.
Chicken Soup for the Soul, a U.S.-based media company, will cease all operations after struggling with debt and failing to turn a profit.
The company originally filed for Chapter 11 bankruptcy but now plans to liquidate after a judge granted a request to switch to Chapter 7 proceedings.
The company plans to lay off 1,000 members of staff and shutter completely – taking three free apps on The Roku Channel and FireStick TV with it.
This means the popular streaming appsCrackle, Redbox, and Popcornflix will end service soon.
The Redbox app has already disappeared from the Roku Channel Store, with the others expected to follow.
Crackle launched in 2004 and became one of the first globally recognized free, ad-supported streaming services.
It was acquired by Sony in 2006 and sold to Chicken Soup for the Soul in 2019.
Popcornflix launched in 2010 and was another early player in the world of FAST streaming.
Its parent company, Screen Media Ventures, was snapped up by Chicken Soup for the Soul in 2017.
The company’s best-known venture, Redbox, attracted attention for its kiosks that allowed movie fans to rent flicks in person.
It expanded onto Roku and Amazon Fire TV in 2022 and broke into the world of ad-supported streaming, attracting a new audience.
The three apps mostly had older content and classic films, but also boasted some newer titles.
Customers flocked to social media in the wake of the Chapter 7 bankruptcy announcement.
“They had a good run with Redbox. Found a niche and filled it until it became irrelevant,” wrote one Reddit user, who claimed to be “a frequent user back in the day.”
“Well, Chicken Soup for the Soul acquired Redbox in 2022 and then filed for bankruptcy less than two years later. Not the best run for them.” another user quipped.
A Delaware judge is looking into allegations of missed wages and denied healthcare benefits.
Judge Thomas Horan vowed Wednesday to appoint a trustee to probe whether funds deducted from employees’ paychecks were misappropriated.
Horan himself has stated that the company has “no means to continue to pay employees.”
Free, ad-supported streaming television is a service that delivers programming similar to cable or traditional TV.
You can view FAST content at no cost, with the only condition being the commercials that appear before or during the content.
Depending on the service, you can watch titles on demand or stream prescheduled broadcasts. Some platforms also offer live TV.
FAST providers often have an expansive library of older shows and branded programming in addition to original titles.
Free, ad-supported channels air 24/7 and have scheduled commercial breaks built into their programming.
Content is normally organized by genre in addition to dedicated channels for specific titles or brands.
The company will shut down all 24,000 Redbox kiosks nationwide in addition to its on-demand streaming services.
It is a disastrous end for Chicken Soup for the Soul Entertainment after reporting around $636 million in net losses last year.
This was followed by nearly $53 million in losses in the first quarter of 2024.
