The rumors are true and Redbox & Verizon have formally announced a joint venture to compete directly with Netflix in DVD and streaming. From the press release:
The joint venture plans to introduce the product portfolio in the second half of 2012. It will offer subscription services and more in an easy-to-use, flexible and affordable service that will allow all consumers across the U.S. to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer. Additional brand and product information will be revealed in the coming months.
...By offering instantly available online and mobile content with immediate access to physical media through rental kiosks, Verizon and Redbox will be uniquely positioned to deliver the best of both worlds – digital and physical – to consumers across the country.
Verizon will own 65% and Redbox will own the remainder of the company.
It'll be interesting to see how they price and position the services, which are expected to launch later this year.
via Engadget.
If the price and content are right I'll definitely keep an eye on this service. Claiming to compete directly w/ NF might not be totally accurate however. NF has already pretty much ceded dominance over the disc market in favor of streaming. And they have publicly stated many times their plan for streaming is to focus on past, whole seasons of popular TV series with as many movies thrown in they can get their hands on.
From this press release it seems Verizon/RB are looking to offer "new and popular entertainment". What that means we don't know yet. However it sounds like they want to offer more new release titles via disc and streaming. It remains to be seen if they can price their subscription competitive with the on demand services already in existence: RoxioNow, Vudu, Amazon, Direct TV and so on. Plus which where and how will consumers get their streaming app.? Short of software updates for the thousands of devices already out there, it might be tough getting people to buy yet another set top box.
Posted by: ts | February 06, 2012 at 01:48 PM
@ts The press release above clearly states "using the media and devices they prefer." So according to this they will try to get on as many devices as possible.
Posted by: Donald | February 06, 2012 at 02:17 PM
The devices could also mean PC and mobile devices, I doubt it will be available to watch on TV via a set-top box.
Posted by: moviegeek | February 06, 2012 at 02:25 PM
Way too short on details. Will it be an app, a box, require FIOS or Verizon wireless, will streaming and DVD rentals be separate or one plan? I wonder if they even know what they are going to offer "in the second half of 2012". Microsoft talked about offering streaming but then when they found out how expensive it would be to get content they decided against it.
Oh, and Verizon is evil.
Posted by: Robert Emmerich | February 06, 2012 at 02:31 PM
"It will offer subscription services and more..."
Their streaming titles will not be different than what Netflix has (and definitely fewer in terms of the back catalog - especially since they've taken a shot across the bow of WB), but they will most likely offer PPV options for new releases. It will cost more, but offer mobile options for streams like iTunes does. Not direct competition for Netflix, but still another option for the marketplace.
Posted by: Former Netflix Employee | February 06, 2012 at 02:42 PM
I think no one is going to be able to compete with Netflix on breadth of streaming catalog, not because NF is so comprehensive, but because NF has a big head start. Also the studios are going to be wary of cutting deals with any streaming company going forward.
I really see Redbox as a complement to NF streaming rather than a competitor. Their offerings barely overlap, and the delivery mechanisms are completely different. With NF bowing out of disc-by-mail, Redbox/Verizon are going up against Netflix on its own home ground, and with no clear advantages as they do it. I'm skeptical of this move.
Posted by: jheartney | February 06, 2012 at 03:12 PM
What we heard more than anything over at Netflix was folks screaming about not having access to new arrivals on the streaming service. Netflix can't control that, and aren't about to enter in to the PPV business. There is obviously a market segment that will take advantage of it.
Apple has iTunes that works in a similar fashion, but with Verizon's market-share of providing for mobile devices, they may be a stronger competitor for iTunes than Netflix.
Posted by: Former Netflix Employee | February 06, 2012 at 03:39 PM
@Donald. You're right. I overlooked that sentence. I have no idea how easy or difficult it would be to get all the various device manufactures to roll out a software update w/ their new app. It doesn't seem like it would be easy though. I assume everyone will want a piece of the pie to make it worth their while. Heck I have an LG TV less than a year old that still doesn't offer an Amazon app. Everything has an Amazon app! I've got it thru a BR player so not a big deal, but software updates are few and far between w/ internet ready devices in my experience. We'll see if Verizon has the juice to push one out en masse.
Posted by: ts | February 06, 2012 at 06:05 PM
Ive long said that Redbox needs a subscription model.
I have my doubts that this combo is going to offer what Im looking for which is netflix style streaming to my TV combined with DVDs.
But, as a consumer, I welcome the competition. Maybe netflix will drop their combo price a few bucks.
It will be interesting.
Whodathunk netflix was going to turn their back on their bread & butter DVD business ?
ive actually just dropped DVDs for the first time in about 8 years. The top 10 on my queue constantly have long waits and the available content isnt great. Reminds me of the "throttling" they used to do.
I will probably start it up in a month or so again at a lower plan.
Hate that I cant manage my DVD queue in the meantime.
Posted by: RJM | February 06, 2012 at 10:46 PM
From this press release it seems Verizon/RB are looking to offer "new and popular entertainment". What that means we don't know yet.
Posted by: cheap north face jackets | February 07, 2012 at 04:26 AM
ts, I have about a year old LG Smart TV and it came stock with Amazon. At work right now so I can't get you the model #. Have you updated the firmware? If it's up-to-date I would think about contacting LG's customer service. Pandora and another app or two (pulling a blank right now), are available on LG's set-top box but not TVs. Amazon, should be available to you.
Posted by: Nate | February 07, 2012 at 05:53 AM
screw Verizon
Posted by: the troll | February 07, 2012 at 07:56 AM
blah blah blah.
I don't get it. What would Verizon need Redbox for? Redbox may have deals with studios for buying discs, but they have zippo in place for streaming. If verizon is going to get into the streaming business they could do it without Redbox.
I also agree about all of the hardware that is already out there that has a Netflix app, but no verizon or Amazon apps. Hell I have 4 streaming devices in the house and only one of them has Amazon! I am not going to hold my breath that any of them is going to do a firmware update anytime soon. It is more likely they would prefer I buy a new device. (not going to happen)
Netflix is the only app that is on ALL devices capable of streaming. The head start is waaaaaaaaaaaaaaay to big.
Posted by: Mrmanmac | February 07, 2012 at 04:59 PM
Nate, the model that was produced immediately following my model has Amazon. I don't have my model # handy but I've done a bit of online research and the model I bought is no longer in production so I prob got one of the last ones before yours came out. The apps available on mine are: NF, Vudu, CinemaNow, Yahoo, Picasa and MLB. I've done a firmware check, and I'm up to date. Anyway as mentioned I have access to Amazon and much more on one of my BR players so no biggie.
Posted by: ts | February 07, 2012 at 08:39 PM
Until Redbox has older movies, classic, cult films, and LOTS MORE non-new releases in their machines, they'll continue to fail with me.
I don't like 90% of the new movies coming out. There's a lot of crap out there, and I don't care for remakes when I can see an original.
Redbox's selection is ALWAYS disappointing to me. Until that changes, they won't beat Netflix.
Posted by: Jack | February 07, 2012 at 09:28 PM
I am not a fan of Redbox when I have to go out to a kiosk to get a DVD. Really love the comfort of having the DVD's delivered to my mailbox. Not into streaming content. Don't have the capability. Now if Redbox wants to start with deliveries......
Posted by: Greg | February 07, 2012 at 10:51 PM
Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment.
Posted by: Viral Videos Development | February 08, 2012 at 12:25 AM
Lots of companies have touted that they are going to compete with Netflix, but so far nobody has. Even the Redbox/Verizon deal sounds more like iTunes or On Demand than Netflix. So until someone actually provides a streaming service with a large selection and hundreds of devices to access it I'm not a believer. Why should we believe that Redbox/Verizon is any more capable of pulling it off than Amazon, Hulu or any of the others who have already tried. Even Microsoft gave up before they got started.
Posted by: Show Me The Movies | February 08, 2012 at 01:43 AM
That sucks ts, I've received numerous firmware updates since I've purchased mine. I probably have 20 apps, all the standard HuluPlus/Netflix/Amazon/Vudu etc. and even less well known ones like Viewster.
Posted by: Nate | February 08, 2012 at 05:50 AM