Redbox to compete with Netflix in video streamingBy Matthew DeCarlo
Tired of life on the streets, Redbox pledges to expand its curbside rental service and compete with Netflix in the increasingly crowded video streaming business, according to Bloomberg. In an interview, Redbox president Mitch Lowe suggested a Web service would allow the company to build out its existing library of 200 or so titles, which are currently stuffed inside 24,000 automated DVD kiosks outside retailers across the US.
Despite its interest in going digital, analysts say the Coinstar subsidiary lacks the knowledge to pull it off without some outside help from a firm like Sonic Solutions, who partnered with Best Buy last year to develop an on-demand TV show and movie business.
There's not much to share about the service itself at this point, but Redbox is expected to announce more details in October. Rumors say the company's implementation would cut Netflix's price of $9 a month by more than half, and given its current $1 rental scheme, that's not entirely inconceivable. Some have also mentioned the possibility of a multi-device strategy.