RUTHERFORD COUNTY, TN - A Murfreesboro-based company, DOMATTER, is stepping up to address a growing security concern involving abandoned Redbox DVD rental kiosks scattered across the U.S. After Redbox ceased operations on its DVD rental machines earlier this year, many units have been left unattended, creating potential risks for data theft. DOMATTER, which stands for Discarded Obsolete Machines and Technological Equipment Recovery, is now seeking an emergency court order to take possession of the abandoned kiosks and prevent unauthorized access to sensitive customer information.
Redbox, once a household name for DVD rentals with over 34,000 kiosks nationwide, saw its numbers dwindle to 24,000 by the time its parent company, Chicken Soup for the Soul Entertainment (CSSE), filed for Chapter 7 bankruptcy in July 2024. With the rise of streaming services like Netflix, Apple TV, and Amazon, DVD players have become increasingly obsolete, leading to a sharp decline in demand for physical movie rentals. In response, Redbox ceased operations, leaving behind thousands of kiosks in locations nationwide.
William James Boyd of DOMATTER explained the urgency of the situation in a filing to Judge Mary Walrath in Wilmington, Delaware. “Since the bankruptcy of REDBOX AUTOMATED RETAIL, LLC, these kiosks are no longer being serviced, maintained, or monitored by any normally functional organization,” he wrote. Boyd expressed concern that the kiosks contain critical data, including customers’ credit and debit card information, which could be vulnerable to data thieves.
DOMATTER’s recent request, filed on November 7, 2024, emphasizes the importance of safeguarding this customer data. "We seek this authorization to capture and securely destroy the personally identifiable information these kiosks contain to protect the public from identity theft," Boyd stated. He asked for immediate court permission for DOMATTER and other secure data destruction companies to safely collect and dispose of the data stored within the kiosks.
As of now, the court has not granted DOMATTER the authority to proceed with the recovery and data destruction efforts. WGNS will continue to monitor developments in this story as DOMATTER advocates for consumer data protection amid Redbox’s shutdown and bankruptcy.
