Redbox Instant Streaming in Beta & Launch By End of 2012

Bloomberg (via Inside Redbox) reports that Redbox will be launching Redbox Instant, a Netflix competitor, by the end of the year.

Coinstar Inc. (CSTR)’s Redbox and Verizon Communications Inc. (VZ), providing details of their challenge to Netflix Inc. (NFLX), will offer subscription streaming, movie sales and rentals by Christmas, along with DVDs from the local kiosk.

Redbox Instant by Verizon, being tested in the homes of about 500 Verizon employees, initially will focus solely on newer movies that have been available for sale and rental, Eric Bruno, Verizon’s vice president of strategy and planning for consumer and mass business markets, said yesterday in an interview.

It'll be interesting to see the quality and quantity of titles at launch.

Comments

[iPhone Application Developer]

Definitely, this services make some noise for those who are willing to buy movies and other stuff by this service.

[Sam]

Do they really hope to take on netflix? It's going to take them years to have a comparable library.

I think it would be more interesting for the cable and other broadcast companies to lower their PPV costs. They should at least match Itunes' pricing, if not making it a buck cheaper.

[rjejr]

This would make them a true competitor to nf monthly subscriptions so I'm interested in seeing the details. Redbox has games in it's box so I'm of course wondering if they'll have a plan similar to Blockbuster that includes those. I think I have 2 or 3 kiosks within walking distance of my house so I'll be watching this closely.
Ithought Barnes and Noble might be offering up some competition but it looks like they are going non-subscription like iTunes.

[Niraj]

To answer some of the questions above, Fast Company had an interview with Coinstar's CEO about a month ago that revealed some more of their strategy. Specifically they're focusing on fewer, high-quality titles since they can't compete on quantity (and may exclude TV shows entirely).

http://www.fastcompany.com/3000589/coinstar-ceo-hints-anti-netflix-content-strategy-redbox-verizon-streaming-service

"I think there's a point where as consumers, I mean, do you really need 100,000 titles? I mean, really?" Davis says. "We want to keep it very simple, with movies that matter. I think trying to win the war on, you know, here's another 10,000 titles--we have to focus on what's going to be really important for us."

Of Netflix's expansive streaming catalogue, Davis says, "It's overwhelming, and so much of Netflix's offering is TV."

[D]

i recently cancelled my DVD plan & NF went & cancelled BOTH my DVD & streaming plans....WTF.....this happen to anyone else?

[Steve Forman]

They will fail like all the others. Unless you can offer good titles in an "all you can eat" subscription model (and they won't most likely), they are doomed. People may complain all they want about the lack of newer titles but nothing beats Netflix Instant Streaming quality in my opinion.

[D]

PS...now i'm trying to 'restart' my membership & it keeps saying 'the payment system is unavailable...please try again later'...do they want my money or not??

[ts]

When it comes to the "title war" I don't see how they will have anymore luck than NF. Studios already do not make new release titles "that matter" available for streaming on NF so why should it be any different for RB? Plus which when they say they are partnering w/ Verizon I'm assuming they are talking about the FIOS service. Reports I've read indicate they are not a major player nor is the service reliable. Could be wrong about this but how else would RB get content to your TV? Or are they just thinking about PC access which many would not find desirable? Seems like many hurdles to clear but it will be interesting to follow.

[Crow550]

@D CALL NETFLIX!

Back on topic. Well see how this pans out when it comes out.

If the people that run RedBox can do a good job streaming....

[Frank22]

I suspect they will not be able to charge the 1.05 for movies as in the kiosks. The producers have more pricing control. Although it is much more expensive to buy the DVD's, ship them, and stock and maintained the machines, the streaming will cost 3-5 times as much.

[who your daddy]

i would like to see an xbox app to stream movies and a app to rent games to play it can be done

[moviegeek]

This is only for Verizon home customers which is only in the NE US, most of the US won't have access(no mention if it will be available for wireless customers). Nice try Redbox/Verizon but I can watch Netflix on any device anywhere in the US for $7.99 a month.

[Ethan]

@D

i recently cancelled my DVD plan & NF went & cancelled BOTH my DVD & streaming plans....WTF.....this happen to anyone else?

Check if you were charged for streaming. Same thing happened to me and I was. I called in and they said it had happened to quite a few people, but once they knew my acct was one it was fixed in a couple hours without charging me again.

Their billing system was down today for awhile, so that's probably what your other post was. It's back up now.

[Ethan]

@who your daddy. Yes it could be done, but not through streamin... at least not viably with most internet connections. Would have to be a full download taht expires after x amount of time, which does make the DRM harder. Game companies pretty much want you to buy the game though, because most games that aren't online don't have a playtime of more than 6-10 hours anyway.

So they won't sell digital rights to anyone except for sale purposes ie buying games.

Or at least that is my 2 cents.

[EZ]

I hope we have an alternative to Netflix soon.

The DVD supply has become a joke with everything worth looking at now on forever waits.

[moviegeek]

"I hope we have an alternative to Netflix soon.

The DVD supply has become a joke with everything worth looking at now on forever waits."

If you think Netflix is bad you should try Blockbuster, they are the closest competition but their DVD service is a real joke. Redbox/Verizon will be more expensive because it will be PPV, besides you still have to drive to a Redbox to get a DVD. IMO Netflix streaming+DVD is still the best value and they mail it to your house.

[Bill Cartwright]

I've said it before, no one is going to want to stand at one of those Redbox Kiosks all night watching streaming movies, it just won't work

[devin]

Did someone really think that you'd have to stand at the kiosk to get the streaming? LOL . :) It's going to be the same model as netflix but maybe not the same devices/ We'll see. I don't see how they are going to get better content when netflix can't. Or maybe they just won't pay. I personally would pay a buck or two more to get the dvd movies to stream. Would you?

[bigqueue]

Steve Forman:
>They will fail like all the others. Unless you can offer good titles in
>an "all you can eat" subscription model (and they won't most likely)

If you read the article, it mentions "monthly subscription" as well as individual purchases. So, that theoretically could be "You get X movies for $Y/month", but I hope it means an all you can eat model.

(BTW, I'm currently on DVD only from Netflix. I have vaguely considered getting Amazon Prime for the video primarily, and shipping secondarily.. But I have enough Tivoed stuff that I'm only watching about 1 DVD/week lately.)

[repdetect]

I have Amazon Prime, as well as Netflix streaming and Hulu+. Netflix certainly has the lead in # of titles and subtitling, Hulu+ has a lot of current tv but no CC, and Amazon Prime has newer movie & tv selections and the best HD video and sound (5.1) but no subtitles or CC.
With all 3 at about $25/mo and an occasional rental from a local video store, we are happy.
Looking forward to all having 5.1 and CC or subtitles.

[yobagoya]

It sounds like NF is the only service providing subtitles, so why are they the ones being sued?