Redbox goes streaming

[Smokey]

http://www.wired.com/images_blogs/gadgetlab/2012/12/1212_redbox_1200-660x440.jpg

The streaming-video market is getting streamier as Redbox Instant, the Redbox/Verizon mashup aimed squarely at the Netflix juggernaut, goes into the public beta phase by the end of December.

For $8 a month, in addition to streaming videos like Netflix, subscribers get as many as four DVDs a month at the giant red box in their local convenience store or supermarket. They’ll have to fork over another buck a month for Blu-ray. And $6 bucks for a streaming-only account.

Redbox provides access to flicks from Warner Bros., Sony and Epix (who partners with Paramount Pictures, Lionsgate and MGM). But Redbox Instant will have fewer streaming titles than Netflix.

When the Redbox Instant service does launch to the masses (sometime in 2013) it will be available on iOS, Android and Google TV devices in addition to smart TVs and Blu-ray players form LG and Samsung.

Redbox Instant Enters Crowded Instant Streaming Field with Beta | Gadget Lab | Wired.com (http://www.wired.com/gadgetlab/2012/12/redbox-instant-beta/)

[Sir Terrence the Terrible]

They are so behind the curve with the competition, they really are going to be no competition at all. I cannot see anyone who has Netflix right now dropping them for four Blurays a month, and a meager streaming catalog.

[E-Stat]

The streaming-video market is getting streamier as Redbox Instant, the Redbox/Verizon mashup aimed squarely at the Netflix juggernaut, goes into the public beta phase by the end of December.
Which will most likely convert another segment of movie renters to kick the disc.

[Smokey]

They are so behind the curve with the competition, they really are going to be no competition at all. I cannot see anyone who has Netflix right now dropping them for four Blurays a month, and a meager streaming catalog.I bet with Verizon as their partner, they probably aiming for mobil video share of the market. As you said they won't have as many titles as Netflix, but unlike Netflix-one don't have to wait on the mail man for their disc. They get it instantly at local kiosk.
Which will most likely convert another segment of movie renters to kick the disc.Or maybe not as their $8 a month service also offer four disc rental per month.

[Sir Terrence the Terrible]

Which will most likely convert another segment of movie renters to kick the disc.

Based on the comments I have read on the internet, this is not likely. Their streaming catalog would have to be much larger for that scenario.

[E-Stat]

IOr maybe not as their $8 a month service also offer four disc rental per month.
Isn't their normal rental only a buck?

[Sir Terrence the Terrible]

I bet with Verizon as their partner, they probably aiming for mobil video share of the market. As you said they won't have as many titles as Netflix, but unlike Netflix-one don't have to wait on the mail man for their disc. They get it instantly at local kiosk.

The problem with this partnership of Redbox and Verizon is that it does not solved one of Netflix's biggest issues. Content costs. When Netflix got their first studio agreements, it cost them $300 million dollars. The next contracts will likely cost them an estimate $1.2 billion. So Verizon opening price of $8 dollars cannot, and will not last, and everyone knows(even if Netflix won't admit it) that Netflix current cost will rise. This is especially after the New Disney agreement that will cost them $350 million.

Have you noticed that Netflix has backed off their streaming only pursuit? That is because they realized the disc for rental market is still lucrative, and is currently doing much better than streaming. They also realized they would not be able to fund more streaming titles without the help of the disc renters.

At this point, I see no benefit in any Netflix subscriber switching over to this. It does not offer anything different, and it offers quite a bit less for that matter. They came to late in the game IMO.

[Smokey]

The problem with this partnership of Redbox and Verizon is that it does not solved one of Netflix's biggest issues. Content costs. When Netflix got their first studio agreements, it cost them $300 million dollars. The next contracts will likely cost them an estimate $1.2 billion. So Verizon opening price of $8 dollars cannot, and will not last, and everyone knows(even if Netflix won't admit it) that Netflix current cost will rise. This is especially after the New Disney agreement that will cost them $350 million.If Netflix $8 price do rise as you said, their main excuse probably be that they offer exclusive contents such as Arrested Development and House of Cards over other streaming services. Along with Disney exclusive contracting.

Maybe Redbox strategy is that once Netflix prices do go up, their $6 and $8 subscription fee look attractive. The big question here might be what does Verizon partnership with Redbox bring to the table. I don't know how many customers Verizon have, but it provide an already potential existing base for Redbox.

[Sir Terrence the Terrible]

If Netflix $8 price do rise as you said, their main excuse probably be that they offer exclusive contents such as Arrested Development and House of Cards over other streaming services. Along with Disney exclusive contracting.

Maybe Redbox strategy is that once Netflix prices do go up, their $6 and $8 subscription fee look attractive. The big question here might be what does Verizon partnership with Redbox bring to the table. I don't know how many customers Verizon have, but it provide an already potential existing base for Redbox.

If Netflix gets the quality content, then the price increase won't matter much. I would certainly pay it because - quite frankly I am addicted to all the great documentaries I find
on there.

If Redrizon does not have the content, their cheap price will not benefit them one bit. Content is king, and he who has the most of it will come out the leader in the streaming of content - regardless of what it costs.

[kendra_03]

Along with Netflix, Redbox kiosks have all but ruined the movie rental business that Blockbuster created. Now Redbox has trained its sites on yet another part of the consumer entertainment sector: event ticket sales. Consumers will soon be able to purchase event seats for concerts, theater and other shows at any Redbox kiosk, reports The Wall Street Journal.