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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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