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Redbox streaming video service enters beta this month and undercuts Netflix

Movie rental kiosk service Redbox and Verizon Wireless are set to launch a new streaming video service to rival Netflix this month. The streaming video service will be called “Redbox Instant by Verizon” and will offer monthly subscriptions for six dollars per month. That streaming only price will undercut the price of Netflix by two dollars.

The Redbox streaming service will also have an eight-dollar monthly plan that includes unlimited streaming and four single night DVD rentals per month from Redbox kiosks. The service will go on sale in a limited beta later in the month.

The Redbox physical DVD and streaming plan for eight dollars per month is significantly cheaper than the Netflix plan that allows consumers to rent DVDs and costs $16 per month. Another significant benefit the Redbox service is that users can rent the DVDs immediately at any Redbox kiosk.

Redbox Instant subscribers will be able watch streaming movies from Paramount Pictures, Lions Gate Entertainment, Warner Bros. and MGM. Streaming will be available via smart TVs, smartphones, and tablets.

"They don't need everything Netflix has," said B. Riley & Co analyst Eric Wold. "I think it's going to be a big draw for consumers."

Redbox recently started selling concert tickets at some of its kiosks and is making plans to significantly expand its footprint.

Source: Reuters

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analyst is wrong
By MadMan007 on 12/14/2012 10:16:58 AM , Rating: 5
The analyst is wrong. It is ALL about the content. If a service has much smaller selection, or is missing someone's favorite shows, they aren't going to subscribe. I like using Redbox kiosks but I sometimes don't use it because the only available movies are ones I don't really want to watch. Streaming is no different.

(OK, general service quality and video quality matters too up to a point, but those are technical issues.)

RE: analyst is wrong
By kattanna on 12/14/2012 10:46:27 AM , Rating: 3
"They don't need everything Netflix has," said Wold, who has a "buy" rating on Coinstar and a "sell" on Netflix. "I think it's going to be a big draw for consumers."

hmm.. bias much?

thats from the actual article.

RE: analyst is wrong
By kingmotley on 12/14/12, Rating: 0
RE: analyst is wrong
By menting on 12/14/2012 11:02:14 AM , Rating: 2
i dont have netflix because it has barely any new movies that I want to watch. I suspect redbox will be the same. Now, if they stream the same movies that they have in DVD/Bluray in the kiosks, then I'll be signing up.

RE: analyst is wrong
By Ammohunt on 12/14/2012 11:24:26 AM , Rating: 2
I use Neflix primarily for old TV shows of which they have an awesome selection. New Release movies i get from iTunes or buy them on blue-ray. We quit the physical disk rental piece from Netflix becasue we never used it.

RE: analyst is wrong
By RufusM on 12/14/2012 12:00:40 PM , Rating: 2
At home we use both Netflix streaming + DVD. Basically, if it's on streaming we do that, if not we get the DVD. Netflix replaces the cable on-demand services we received with cable before dropping it. Our "regular" TV is all TiVo + OTA antenna.

(We tried Hulu+ but it didn't have many things of interest and wasn't worth it for us.)

RE: analyst is wrong
By Ammohunt on 12/14/2012 3:36:48 PM , Rating: 2
Did the same thing with Hulu+ there is nothing there that is worth watching or another service doesn't provide unless you are into obscure foreign shows.

RE: analyst is wrong
By Moishe on 12/14/2012 3:27:09 PM , Rating: 2
I use Redbox, Hulu, and Netflix and I definitely agree that content is the key. Price can overcome content if the price is low enough.

Netflix has enough content to keep my queues full. Hulu helps for certain things. Redbox is the "overflow" method for me. It's the means of getting something *now* that I can't find anywhere else.

I get that they're trying to expand past that, and I hope it works.

But content is key.

RE: analyst is wrong
By V-Money on 12/14/2012 4:49:27 PM , Rating: 2
I think there is a different market as well that you kind of touched on. I use Netflix and Amazon prime right now for shows and movies (I stopped using tv years ago) and I occasionally brush with Hulu, but I don't pay for premium because I can't see paying for commercials.

Anyways, at 6 bucks a month if they have any content that Netflix doesn't I might think about adding it. I wouldn't replace Netflix with it but I would definitely use it to supplement it. I mean I already buy prime for shipping so the video service is an added benefit, and the price of both netflix and this is only 14 bucks a month, I lose more a month in the washing machine.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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