Print 17 comment(s) - last by Akrovah.. on Dec 17 at 5:46 PM

Redbox streaming video service enters beta this month and undercuts Netflix

Movie rental kiosk service Redbox and Verizon Wireless are set to launch a new streaming video service to rival Netflix this month. The streaming video service will be called “Redbox Instant by Verizon” and will offer monthly subscriptions for six dollars per month. That streaming only price will undercut the price of Netflix by two dollars.

The Redbox streaming service will also have an eight-dollar monthly plan that includes unlimited streaming and four single night DVD rentals per month from Redbox kiosks. The service will go on sale in a limited beta later in the month.

The Redbox physical DVD and streaming plan for eight dollars per month is significantly cheaper than the Netflix plan that allows consumers to rent DVDs and costs $16 per month. Another significant benefit the Redbox service is that users can rent the DVDs immediately at any Redbox kiosk.

Redbox Instant subscribers will be able watch streaming movies from Paramount Pictures, Lions Gate Entertainment, Warner Bros. and MGM. Streaming will be available via smart TVs, smartphones, and tablets.

"They don't need everything Netflix has," said B. Riley & Co analyst Eric Wold. "I think it's going to be a big draw for consumers."

Redbox recently started selling concert tickets at some of its kiosks and is making plans to significantly expand its footprint.

Source: Reuters

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analyst is wrong
By MadMan007 on 12/14/2012 10:16:58 AM , Rating: 5
The analyst is wrong. It is ALL about the content. If a service has much smaller selection, or is missing someone's favorite shows, they aren't going to subscribe. I like using Redbox kiosks but I sometimes don't use it because the only available movies are ones I don't really want to watch. Streaming is no different.

(OK, general service quality and video quality matters too up to a point, but those are technical issues.)

RE: analyst is wrong
By kattanna on 12/14/2012 10:46:27 AM , Rating: 3
"They don't need everything Netflix has," said Wold, who has a "buy" rating on Coinstar and a "sell" on Netflix. "I think it's going to be a big draw for consumers."

hmm.. bias much?

thats from the actual article.

RE: analyst is wrong
By kingmotley on 12/14/12, Rating: 0
RE: analyst is wrong
By menting on 12/14/2012 11:02:14 AM , Rating: 2
i dont have netflix because it has barely any new movies that I want to watch. I suspect redbox will be the same. Now, if they stream the same movies that they have in DVD/Bluray in the kiosks, then I'll be signing up.

RE: analyst is wrong
By Ammohunt on 12/14/2012 11:24:26 AM , Rating: 2
I use Neflix primarily for old TV shows of which they have an awesome selection. New Release movies i get from iTunes or buy them on blue-ray. We quit the physical disk rental piece from Netflix becasue we never used it.

RE: analyst is wrong
By RufusM on 12/14/2012 12:00:40 PM , Rating: 2
At home we use both Netflix streaming + DVD. Basically, if it's on streaming we do that, if not we get the DVD. Netflix replaces the cable on-demand services we received with cable before dropping it. Our "regular" TV is all TiVo + OTA antenna.

(We tried Hulu+ but it didn't have many things of interest and wasn't worth it for us.)

RE: analyst is wrong
By Ammohunt on 12/14/2012 3:36:48 PM , Rating: 2
Did the same thing with Hulu+ there is nothing there that is worth watching or another service doesn't provide unless you are into obscure foreign shows.

RE: analyst is wrong
By Moishe on 12/14/2012 3:27:09 PM , Rating: 2
I use Redbox, Hulu, and Netflix and I definitely agree that content is the key. Price can overcome content if the price is low enough.

Netflix has enough content to keep my queues full. Hulu helps for certain things. Redbox is the "overflow" method for me. It's the means of getting something *now* that I can't find anywhere else.

I get that they're trying to expand past that, and I hope it works.

But content is key.

RE: analyst is wrong
By V-Money on 12/14/2012 4:49:27 PM , Rating: 2
I think there is a different market as well that you kind of touched on. I use Netflix and Amazon prime right now for shows and movies (I stopped using tv years ago) and I occasionally brush with Hulu, but I don't pay for premium because I can't see paying for commercials.

Anyways, at 6 bucks a month if they have any content that Netflix doesn't I might think about adding it. I wouldn't replace Netflix with it but I would definitely use it to supplement it. I mean I already buy prime for shipping so the video service is an added benefit, and the price of both netflix and this is only 14 bucks a month, I lose more a month in the washing machine.

Good time to do this
By Mitch101 on 12/14/2012 10:14:23 AM , Rating: 2
Good time to do this as its gotten cold outside and all these red box's around me are outside.

The downside is I hope the devices I have around the home will be able to add the streaming service. Im not interested in picking up another device but I suspect Im safe with the X-Box 360 downstairs and the Roku upstairs. Devices like my BLU-RAY player and HDTV that have some channel support might not get it. Guess I can just brave the cold every now and then.

Hope they don't have the same mistakes that made me quit Netflix like Ghost Busters 1 was available for streaming but to watch the second one its only available on disc. WTF? You get the idea. Ever since Netflix broke up the 1 disc/streaming service to separate programs its never been the same.

RE: Good time to do this
By Moishe on 12/14/2012 3:29:34 PM , Rating: 2
I've only seen the disc 1 - streaming issue on a few, and that was awhile ago. In the past year or so, if it's on streaming, it's all there, which is nice.

I agree that the device support is kind of a drawback. I use netflix on the PC, Wii, and bluray player. I don't want to (I will not) get a new bluray player just for Redbox streaming. If my firmware updates and includes it though, I might consider it.

Realities of Netflix DVD service
By westrock2000 on 12/15/2012 9:48:11 AM , Rating: 2
I have both Netflix stream and DVD service and love them both.

With Redbox offering 4 discs per month for $2 additional, that is extremely good compared to Netflix. Even though Netflix is $8 a month for 1 "unlimited" DVD, the phyiscal transportation of the disc puts some very real limitations on the amount of discs you can get each month.

If Netflix ships Disc 1 on Monday, you recieve Disc 1 on Tuesday. You ship back Disc 1 on Wednesday and they ship Disc 2 on Friday so you get Disc 2 on Saturday. You can't send it back out until Monday so now your a day behind going into the next week. And of course neither Netflix or the USPS will ship/process the discs on Sunday.

At the VERY BEST you can get 8 discs per month per "disc" subscription from Netflix, but in reality your looking at about 6. So the cost is $1 to $1.33 per actual DVD if you get them out as quick as possible.

So while Netflix DVD selection is vastly superior, if you are interested in the newer releases that would be likely to be in the Redbox kiosk then its a much better deal at $0.50 per disc.

RE: Realities of Netflix DVD service
By Akrovah on 12/17/2012 5:46:02 PM , Rating: 2
This right here is what I am looking at. But they do need to offer the streaming on a variety of devices. PC alone isn't going to cut it.

Hopefully they have a better selection
By GatoRat on 12/16/2012 9:57:11 PM , Rating: 2
Netflix is okay, but were it not for a specific TV show--Monk--I'd cancel since their selection stinks. The other day, my daughter and I got tired of watching Monk for the day and Netflix didn't have a single movie or TV series we wanted to watch.

If RedBox simply concentrates on streaming popular movies instead of weird junk, they'll be successful.

(Heck, if they carry all of "Dexter", they'll get my money. My daughter adds "Chuck.")

By GatoRat on 12/16/2012 10:03:21 PM , Rating: 2
BTW, lest anyone think I'm not appreciating all movies, I've rated over 2500 movies on IMDB and that's mainly just ones I've watched since joining it around 2000. I actually enjoy a lot of of older films (I'm a major Cary Grant fan, but Netflix has relatively few of his films.)

Good news for me
By bupkus on 12/14/2012 10:55:38 AM , Rating: 2
I will carry both until I decide which to keep. If there is little overlap and both carry titles of interest I may even keep both... for a while.

Delivery is a big issue
By StanO360 on 12/14/2012 2:30:23 PM , Rating: 2
There are millions of XBoxes, PS3's, Blu-Ray's and TV's that can stream Netflix to televisions. They have to have a full array of smartphone apps, Xbox apps etc, to be successful. Yes, a lot of viewing is done on laptops, but people expect more now.

"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
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