So, they are trying to speed run the failure of McDonald's experiment with Redbox. Instead of creating a massively successful brand that eventually gets bought up and run into the ground by Christian nutjobs, the Christian nutjobs are starting a video business to crater on their own.
Redbox wasn't a failure. It was actually quite profitable in its day. It just got outclassed by streaming, as did every physical media rental service. I don't know if Netflix even sends discs out anymore, if they do I'd bet money that it's severely less than what it once was.