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Redbox readies online streaming service to battle Netflix

02.18.2011

Redbox reluctantly entered into a deal with the major studios last year which would only allow them to stock new release DVDs and Blu-rays in their popular kiosks after a 28-day window from when the film was released for resale. This lack of new releases kept Redbox in business with the likes of Warner Bros, Fox and Universal but it didn't do much for business with the likes of Tom, Dick or Harry as sales were down by as much as $50 million in the fourth quarter. Unwilling to sit by and let Netflix have all the fun, Redbox has a new strategy to survive: streaming online.

The company confirmed that they're developing a digital option that will be subscription-based and allow consumers to watch a variety of movies through multiple devices. Redbox said that it would be launching a digital service with a well-known partner but would not reveal who the partner was. Many are speculating that because of recent news Amazon was gearing up a instant streaming services, Redbox will be teaming with the leading online retailer to fight Netflix.

Right now it seems the audience for watching movies through the internet is a dedicated but limited audience that seems entrenched with Netflix, who has had the option for years. How will Amazon and Redbox lure away subscribers? Can the industry support this many online options? It didn't exactly help Blockbuster...

Source: LA Times

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4:30PM on 02/19/2011
I use netflix steaming service only and redbox for the new releases. Netflix sucks when it comes to getting new releases in blu ray or dvd format quickly. THat being said, the only way netflix coul be in trouble is if some other company can steam new movies the same day as dvd release or at the least shortly there after. Streaming is the future of movies, and once all the companies can figure out a way to profit from it they will do it.
I use netflix steaming service only and redbox for the new releases. Netflix sucks when it comes to getting new releases in blu ray or dvd format quickly. THat being said, the only way netflix coul be in trouble is if some other company can steam new movies the same day as dvd release or at the least shortly there after. Streaming is the future of movies, and once all the companies can figure out a way to profit from it they will do it.
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5:59PM on 02/18/2011
I would switch if Redbox had a family option. I use Netflix on my PC, PS3 and the kids use it on the Wii. So when the kids watch kiddie movies Netflix thinks I like kiddie movies. So in the "suggestions for you" I have Wonderpets to Zombie movies listed. It would be nice to have a TAB or a user login per member so it knows who is watching what.
I would switch if Redbox had a family option. I use Netflix on my PC, PS3 and the kids use it on the Wii. So when the kids watch kiddie movies Netflix thinks I like kiddie movies. So in the "suggestions for you" I have Wonderpets to Zombie movies listed. It would be nice to have a TAB or a user login per member so it knows who is watching what.
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4:57PM on 02/18/2011
fail.
fail.
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4:47PM on 02/18/2011

And the winner is...

Netflix cant be competed with! Bottom line.
Netflix cant be competed with! Bottom line.
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3:26PM on 02/18/2011

Streaming is limited and WILL NOT replace physical media choices!

I have been watching movies, tv shows, adult content, etc. online for years now. And the image quality is mediocre at best. There are so many limiting factors that make actually receiving High Definition video via streaming impossible that it's basically a lie. Everything from inadequate server capabilities and substandard cabling nationwide to the bandwidth limitations of Netfilx and Internet Service Providers are factors that cause the myth of 1080p High Definition streaming content. And
I have been watching movies, tv shows, adult content, etc. online for years now. And the image quality is mediocre at best. There are so many limiting factors that make actually receiving High Definition video via streaming impossible that it's basically a lie. Everything from inadequate server capabilities and substandard cabling nationwide to the bandwidth limitations of Netfilx and Internet Service Providers are factors that cause the myth of 1080p High Definition streaming content. And that’s just the technical side. The product side is just as bad when (or if, in some cases) you get a High Definition film to play via Netflix Streaming.
I have been using Netflix Streaming for over a year now (originally via XBOX Live and now a combination of XBOX Live and NetCast) and I am constantly, I repeat, constantly disappointed by their presentation of film and television shows. I cannot even count how many times I’ve been kicked out of Netflix via NetCast or had to sit through a “buffering” marathon that it’s ridiculous. In fact, that is more common than watching a film uninterrupted. Yet, my biggest issue with streaming content is that I don’t get to choose the presentation I want. I have to settle for NetFlix’s choice of how I am to watch a film. Seeing a High Definition film via Netflix Streaming in the 2.40: 1 is virtually impossible. If I wanted to watch a film in Pan & Scan I would have gotten the VHS player out of the closet and bought the tape on Amazon. Also, there are no frills with streaming content. I like having the bells and whistles that come with a Blu-Ray Disc. And I know I am not alone. Just look at the way Laser Discs have been traded on E-Bay for all these years. Why did that happen? Because you got an amazing picture quality and supplemental materials not found anywhere else. Netflix Streaming does not and cannot offer those materials.
This is just another option for the masses to receive entertainment and it will do damage to physical media but it won’t kill it; at least not while the United States’ telecommunications infrastructure is still substandard. When, or if, that gets fixed then High Definition streaming content will be viable. But that is years away. Till then it’s just crappy looking movies via Netflix or excellent looking ones via Blu-Ray Disc. It’s your call, People.
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2:10PM on 02/18/2011
That idea won't last. Blockbuster and movie studios will end Netflix and Redbox soon!
That idea won't last. Blockbuster and movie studios will end Netflix and Redbox soon!
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3:18PM on 02/18/2011
You mean the Blockbuster that is slowly going out of business?
You mean the Blockbuster that is slowly going out of business?
12:54PM on 02/18/2011
netflix streaming is awesome. the only way i would ever consider a switch is if redbox offered movies available for streaming as soon as soon as they are available for rental. usually you have to wait a few months on netflix before something becomes available for streaming. Its doubtful that redbox will be able to pose a threat to netflix though
netflix streaming is awesome. the only way i would ever consider a switch is if redbox offered movies available for streaming as soon as soon as they are available for rental. usually you have to wait a few months on netflix before something becomes available for streaming. Its doubtful that redbox will be able to pose a threat to netflix though
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+7
12:10PM on 02/18/2011
Redbox may be able to get consumers who haven't yet gotten into the whole streaming movies thing but converting current Netflix users into Redbox users might prove to be extremely difficult unless they're able to offer something Netflix doesn't.
Redbox may be able to get consumers who haven't yet gotten into the whole streaming movies thing but converting current Netflix users into Redbox users might prove to be extremely difficult unless they're able to offer something Netflix doesn't.
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