Redbox, the purveyors of DVD kiosks near drugstores around the country, is looking to compete directly with Netflix by launching its own video streaming subscription services priced at $8/month — just a penny more than Netflix.In addition to unlimited movie streaming, subscribers will get four one-night credits per month for Redbox machines in order to check out the latest DVD movie releases not available via streaming. And for $1 more dollar a month, they can get Blu-Ray versions.But most conveniently, non-subscribers can still use the service for impromptu rentals, even reserving them online and then picking them up from a nearby kiosk. With both physical locations and online streaming, Redbox seems to have found a value proposition that harnesses the advantages of Netflix and Blockbuster (but with lower overhead than the latter by eliminating employees).While most commentators have not said so, this is the sort of “disruptive” business strategy that may catapult Redbox to the head of the movie rental pack. They haven’t invented a new technology — they’ve just re-invented their business model to match consumer behavior today.The new subscription service, called Redbox Instant, is set to launch in the second quarter of 2013, and will be available online, through Android and iOS devices, the Xbox 360 and select Samsung TVs and Blu-ray players. Redbox Instant is 65% owned by Verizon Communications Inc. and 35% by Coinstar.
Redbox Gets In On the Video Streaming and Subscription Business
Redbox, the purveyors of DVD kiosks near drugstores around the country, is looking to compete directly with Netflix by launching its own video streaming