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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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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
quote:
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?

-Suntan


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