Dvdplay Funding May 2026

The kiosks themselves were ground into plastic pellets. But the funding term sheets—the liquidation preferences, the ratchets, the vendor notes—remain, preserved in SEC filings, a quiet monument to the last time anyone thought renting a disc from a parking lot was a winning bet.

The funding was deployed to launch (a kiosk that also rented Blu-rays) and a doomed pilot program with 7-Eleven to put mini-kiosks (200 discs) on convenience store counters. Both failed. The 7-Eleven pilot cost $800,000 and generated $42,000 in revenue over six months. Act V: The Death Spiral – Convertible Notes and Fire Sales By early 2011, DVDPlay was burning $400,000 per month. Redbox’s market share hit 38% of all physical rentals. Netflix’s streaming service had 23 million subscribers. DVDPlay had no strategic buyer—Redbox didn’t want the technology, and Coinstar wasn’t interested. dvdplay funding

| Round | Year | Amount | Lead Investor | Notable Terms | Outcome | |-------|------|--------|---------------|----------------|---------| | Series A | 2006 | $4.5M | Voyager Capital | Full ratchet, board seat | Burned for expansion | | Mezzanine debt | 2008 | $3.0M | Wellington Financial | 14.5% interest, convertible | Defaulted | | Studio rev-share | 2008 | $2.0M (imputed) | Lionsgate/Warner | 15% of revenue | Raised COGS to 47% | | Series B | 2009 | $12.0M | Oak Investment | 2x liquidation pref, pay-to-play | Lost on streaming pivot | | Convertible notes | 2011 | $2.5M | Portland angels | 20% discount, $0.25 floor | Converted to zero | | | | $24.0M | | | Recovery: $3.1M | The kiosks themselves were ground into plastic pellets