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.