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  (Source: yorkblog.com)
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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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.

-Suntan




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