Print 10 comment(s) - last by YashBudini.. on Feb 21 at 10:38 PM

Kiosk rental company Redbox is looking to directly compete with Netflix

Redbox will be stepping up to Netflix's level by offering a new digital option, which will be a subscription-based internet streaming service. 

Up until now, Redbox has been a kiosk-only DVD and video game rental company. With more and more consumers choosing to watch movies over the internet instead of on DVD, and three studios not providing new releases to the company until nearly a month after they go on sale, Redbox has been hurting. Also, the company recently took a hard hit when Disney raised wholesale prices on its DVD's sold to Redbox.

According to Redbox President Mitch Lowe, the subscription-based internet streaming service will only require a single monthly fee, which will allow users to obtain movies via the internet as well as kiosks.  

The Los Angeles Times reports that Redbox previously mentioned that it would start a digital service with a partner, but the partner has not been identified yet. Insiders have note that Amazon has been talking about launching an online movie service that will rival Netflix, which makes Amazon a "likely candidate" as a partner to Redbox.  

While introducing subscription-based internet streaming will make Redbox a strong competitor to Netflix, the kiosk rental company has some big shoes to fill. Currently, Netflix has over 20 million subscribers to its rental-by-mail and internet streaming subscription services. 

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Only if...
By Jeff7181 on 2/17/2011 11:00:54 AM , Rating: 1
It'll only work if new releases are available for streaming. That's my #1 complaint about Netflix... all the movies available to stream are either not worth watching, or so old they've been played for 48 hours straight on a TBS marathon.

RE: Only if...
By bighairycamel on 2/17/2011 11:35:35 AM , Rating: 2
I agree completely. The only new releases netflix streams were theater flops... The Gamer, case in point.

I still like Netflix's huge selection of older streaming movies, so I could see myself subscribing to redbox if they offer new releases and changing my Netflix subscription to streaming only for $8 or whatever it is.

RE: Only if...
By Adonlude on 2/17/2011 12:39:20 PM , Rating: 2
Redbox, make your 1$ low def new movies available for streaming on tv and I'll have so many dollar bills for you you will think you're working the pole at a strip club.

I dont know about you but if Redbox charged the same prices for streaming new movies, a buck for a DVD or a buck fiddy for high def, as they do at the redbox then I would definately be renting from them. I can stream movies through VUDU and Amazon or the PS3 on my TV but they want the typical $5 rental fee.

RE: Only if...
By Suntan on 2/17/2011 1:35:37 PM , Rating: 3
I can stream movies through VUDU and Amazon or the PS3 on my TV but they want the typical $5 rental fee.

What secret sauce do you think Redbox has that will net them deals like that with the content holders when Amazon and Vudu have to pay up much higher royalties to stream first run content?


RE: Only if...
By kattanna on 2/17/2011 12:09:14 PM , Rating: 2
and if netflix could.. they would.

its the studios not allowing it that is preventing you from streaming the new movies via netflix cause they want the pay per view money.

RE: Only if...
By Jeff7181 on 2/17/2011 2:09:59 PM , Rating: 2
I'm sure they would... but why would anyone pay for a brand new same old service? It has to be cheaper or better or both if they expect to succeed.

RE: Only if...
By MrBlastman on 2/17/2011 4:13:36 PM , Rating: 2
They aren't all that bad. Netflix has quite a large number of independent films available for streaming. Being a film snob, I've come to find there is much to be found worth watching when you look outside of Hollywood.

RE: Only if...
By YashBudini on 2/21/2011 10:38:59 PM , Rating: 2
or so old they've been played for 48 hours straight on a TBS marathon.

Do you ever wonder if Spike is a real station or just a couple of carousel DVD players hooked up to an RF transmitter?

By StevoLincolnite on 2/17/2011 9:18:18 AM , Rating: 2
Hopefully it's world wide instead of US only.
I tire of movie companies here complaining about Pirates, that the sky is falling and such yet... They offer absolutely NO online streaming services in my country.

Good to hear
By Suntan on 2/17/2011 11:18:57 AM , Rating: 2
I question if they can get enough “different” content than Netflix to make a big impact.

I won’t knock the quality of Netflix’s streaming as I can always find something to watch. But I don’t really turn to Netflix streaming if I just have to see this or that specific title (if I really want to see it, I’ll likely want to watch the BR of it anyway.) More so it is ideal if I want to watch something fitting this or that category, but what it is exactly isn’t overly important.

So given that Netflix streaming is best targeted to someone looking for “something in this or that genre,” how is Redbox going to have a “different enough” selection to get people interested in switching?

That said, I am glad to hear more companies trying on the “Monthly Buffet” model instead of just the “a la Cart” model.


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