Redbox to launch video streaming service in 2011

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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.

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