Redbox to launch video streaming service in 2011

By on October 29, 2010, 6:16 PM
As reported in July, Redbox has announced plans to partner with an undetermined company to compete alongside established rivals like Netflix in the video streaming business. Although no deals have been inked just yet, Coinstar CEO Paul Davis said Redbox is in "detailed negotiations with a number of highly interested parties" to launch a "Redbox-branded" online service in 2011. Prospective collaborators include Sonic Solutions (the firm behind Blockbuster and Best Buy's streaming service), as well as Amazon and Walmart.


Although the DVD rental service hopes to go digital sometime next year, the company hasn't decided on a subscription model yet. Earlier this year, Redbox asked customers if they'd be interested in a monthly plan that included unlimited video streaming and four DVD rentals for $3.95 -- a bargain to be sure, but again, nothing is set in stone so don't get your hopes up. Despite its foray into streaming, patrons of Redbox's curbside DVD dispensers have nothing to fear. Davis said he sees a "long, profitable life ahead" for the kiosk business.




User Comments: 42

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Se7enVII said:

This would be cool. I know of some people who use Redbox already as an offline alternative. An online solution/competitor would be great for everyone.

klepto12 klepto12, TechSpot Paladin, said:

i love redbox hope they can compete with netflix.

IAMTHESTIG said:

Cool! I don't know about the rest of you but true HD content streaming streaming (720p/1080p) is important to me, along with a good selection.

Glad to see some competition is coming, although it's not like Netflix's prices are insane, but still any competition is good for the consumer.

JMMD JMMD, TechSpot Chancellor, said:

Glad to see more competition in this area. I got a chance to use Netflix streaming last weekend and it was awesome.

poertner_1274 poertner_1274, secroF laicepS topShceT, said:

Healthy competition is great for everyone. I like this idea very much, even though I don't use these types of services. Not enough time for me at the moment.

princeton princeton said:

IAMTHESTIG said:

Cool! I don't know about the rest of you but true HD content streaming streaming (720p/1080p) is important to me, along with a good selection.

Glad to see some competition is coming, although it's not like Netflix's prices are insane, but still any competition is good for the consumer.

Couldn't have said it any better.

miska_man said:

I'm glad they plan on keeping the boxes too. I only have 768k internet which doesn't stream movies so well...

oasis789 said:

competition is always a good thing. if they're gonna charge less than the 8 bucks per month than netflix does, and give me the same good movie streaming, why not?

ruzveh said:

I am not so keen on video streaming. I dont know whats so special in streamings, whats so fun in it?

Scshadow said:

I'm not sure redbox really needs to try to compete with netflix. Netflix is a great value. I'm not even sure how Netflix can turn a profit, between buying and replacing broken DVDs and Blu-rays, shipping and handling costs, purchasing rights to rent out content, and maintaining the streaming servers, I just don't know how in the world do you make profit. Netflix is the one service I know of that doesn't need competition. Well... good luck redbox, you'll need it.

omega00 said:

If or when Redbox goes public on Wall Street, I'm going to pick up a few shares. I was following Netflix the year it went public and could have bought shares then... now I wish had bought some. Netflix's performance within the past year has been amazing.

Recipe7 Recipe7 said:

Why try and fix what isn't broken? Netflix does everything perfectly, I don't see Redbox being a real competitor of Netflix.

Relic Relic, TechSpot Chancellor, said:

Recipe7 said:

Why try and fix what isn't broken? Netflix does everything perfectly, I don't see Redbox being a real competitor of Netflix.

They're just adding a new service which imo is great. Netflix only had one major competitor and that was Blockbuster whose future is very much in question. Considering Netflix is the Steam of video streaming I don't think we consumers have much to worry about, maybe this will bring more streaming content since compared the DVD's they are lacking.

hitech0101 said:

Finally a competitor for netfix & seems like a tough one.

customcarvin customcarvin said:

Why try and fix what isn't broken? Netflix does everything perfectly, I don't see Redbox being a real competitor of Netflix.

Wha? I completely disagree! If i were Netflix I would see Redbox as a real threat. They already are in the DVD market.This competition only benefits us; each company will now try to out best each other to have the most movies with the lowest prices. This is great news for movie watchers such as myself!

danteoz said:

I use redbox on occasion to get a quick movie for cheap for a night. I'm not keen on subscription services though...

Stacey0313 said:

I think this is smart, it widens the customer base a bit. I've never used Redbox because of my Netflix subscription. But I think with streaming I might check it out, see what they have available to stream.

klepto12 klepto12, TechSpot Paladin, said:

If redbox can do something great here we may all get a great service at an amazing price

gwailo247, TechSpot Chancellor, said:

The one downside I ultimately see is that sooner or later you will have some movies get exclusively distributed through either service, which could see some people having to have subscriptions to several different outlets in order to see all the movies they want. Ultimately subscription is the better price model for companies, the majority of low volume users subsidize the high volume users, and help the company be profitable.

mtrenal said:

This is a great sign for online movie renting- more suppliers indicates that the market is taking off, and suppliers competing with each other always drives prices down for the consumer. It will be interesting to see how this plays out.

TomSEA TomSEA, TechSpot Chancellor, said:

I was offered a job at Coinstar when it was first starting up. I turned it down because it didn't pay quite enough. Man, am I kicking myself now...

Vrmithrax Vrmithrax, TechSpot Paladin, said:

Honestly, this is a great move for RedBox, but it's a huge investment in the streaming infrastructure, and I don't see them giving the consumer much more than Netflix already does (as far as streaming content). That price is definitely attractive from Redbox, but I would imagine their streaming library will be a bit shallow, at least in the beginning. With Netflix claiming they are moving more towards streaming, and hinting at a lower cost streaming-only subscription soon, it seems like Redbox might stand to make more on the physical media side for a while yet.

I still think a Redbox/Netflix merger would be absolutely ideal for consumers. Stream to your heart's content, have the option of DVDs by mail, or use the kiosks to pickup/return movies. And you get the consumers who don't want the subscription.

Guest said:

I am not so keen on video streaming. I dont know whats so special in streamings, whats so fun in it?

The thing is, we live in a time of "I want it and I want it right now." Hence the introduction of the on-demand service. Why bother leaving your house when you can just click a button on the remote or visit a website? It uses gas to go pick up a movie and then return it. And if you forget to return it, you pay for another night. With video streaming, you don't have to go anywhere and there are no late fees. Streaming is a time/money saver.

Sure you can ask "but how many movies am I actually going watch?" You can pay $4 a month for one movie streaming (assuming you only watch a movie a month), or you can pay $1 + tax + gas for the trip both ways for one movie. Either way, it evens out...depending on how far away you live from a redbox kiosk. And of course there are other arguments for and against this, but I can only type so much on my phone before I want to throw it against the wall, lol.

ruzveh said:

When will an Indian company open such service here in India as Bollywood movies touching new heights every year it is as good as hollywood.

highlander84 said:

Well because im in Germany I normally don't have access to this type of thing. However i recently set up a VPN so I can use services like this and im amazed at the section netflix has. Glad to see some more coming in the future.

codefeenix codefeenix said:

In my experience netflix has been flawless. I dont think the redbox thing will get many users.

spyx said:

Canada's bandwith is 95% Netfilx O.o....i thought i could throw that in...anywho not sure than someone already loyal to netfilx would swtich over....i doubt they can beat the price netfilx has to offer....the online netfilx is pretty sweat and they are switching over pretty quickly..

poertner_1274 poertner_1274, secroF laicepS topShceT, said:

95%...Nothing better to do on line in Canada than watch movies?

Personally I don't think that users will likely switch from Netflix to Redbox for quite some time. Just as it took Netflix a long time to get their quantity of movies, I'm sure it will take Redbox quite a while as well. It's not going to flip a switch overnight and have the same, or better, content.

ryan29121 said:

Redbox has such a solid business, its only a matter of time before redbox starts to take over the movie rental business. In my city 5 years ago there use to be 6 movie rental companies, most of which were chains. Now only two exist, Family video and redbox.

Afenix said:

Netflix isn't available in my country, maybe Redbox will consider integrating their services here.. hmm

brianmsu said:

didnt know about redbox til i saw my roommate come home with dvds from them all the time. I definitely know more people with netflix, but I SEE rebox around me on campus much more... they should be able to keep with netflix, me thinks

Jibberish18 said:

Well if Redbox is going to do it, they better plan their attack well. I can tell you that I love Netflix but there are a few things I wish they'd change, which they haven't in a while, but they're not deal breakers. For being as busy as they are, they offer pretty damn good service for what you pay. I've never really had a problem streaming movies over my Roku box and I've had them for about 2 years now. That's pretty impressive. It's usually the box that you're using to stream with that gives you problems or your internet connection.

hattrk10 said:

I have been a redbox user for a while now and it's great because you can't rent a movie anywhere else for $1.00! My local redbox now also offers blu-ray rentals and has just begun renting video games as well. I have never had any issues with their movies and service. If they enter the streaming market I would be willing to join if they have the lowest price and still offer quality service. I have not joined netflix yet because I can not guarantee how often I will watch movies so I'm not interested in a subscription service. If I would get unlimited streaming and 4 rentals for 3.95 a month I'd be sold.

AbsolutGaloot said:

I'd definitely get in on that kind of a deal. I love netflix, but only end up having time for one movie a week anyway so the 4/mo for less than half the price would definitely be appealing.

Cryptopsy said:

Netflix is nice but there's not every single series because of licensing issue. Canadians residents can't watch particular american TV show and vice-versa.

TorturedChaos, TechSpot Chancellor, said:

Sounds like a great idea to me. I'm not a netflix subscriber yet, just haven't had the time recently but have been batting around the idea. Another option is something I wouldn't complain about .

RebelFlag said:

I would like to see this, as long as the streaming quality is good. It should also help lower the price for Netflix, which while not outrageous, has about doubled in the last few years.

frodough said:

Redbox should work with the porn industry, that will surely give them an edge or 2

dmoore44 said:

The only way I see this becoming a competition is if Redbox can somehow out negotiate Netflix for new release streaming rights...

silvershad0w said:

3.95 a month for unlimited video streaming & four dvd rentals is a very nice sounding deal. however, if their video streaming content, not to mention the speed of the service, is nothing to speak of then i would not go for it. you can rent a redbox movie currently for 1.09 per night. i wonder if they will charge late fees for returning the dvd rentals even for subscribers of the service? i'm currently using netflix for $9 a month. my personal favorite of the netflix service is that you can watch all of your tv series on their. i love the office

jazboy said:

This will be really cool. Its also good if Netflix gets good competitor. Its win win situation for consumer. If Redbox comes up with this plan and they have good titles to watch online .. Definitely i would like it to try..

fluxcapacitor said:

These people are very shrewd at business. They have killed Blockbuster. I work retail and on a Friday night the line for our Redbox gets really ridiculous. I've seen people wait for almost an hour. When they get into streaming, it's gonna be war between them and Netflix. If they can get the deals for tie-ins that Netflix has, they're gonna KILL...

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