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