Redbox To Begin Streaming Movies

Redbox To Begin Streaming Movies

Redbox has announced plans to roll out a movie streaming service later this year.  Yep, the DVD kiosk company is ready to take on the almighty Netflix.  Their service will include access to online streaming movies as well as DVDs from their friendly neighborhood kiosks.

There have been many recent rumors of a Redbox streaming Service.  Back in April, Redbox asked in a poll, how people would feel about paying $3.95 per month for unlimited video streaming and 4 DVD rentals from their kiosks.  More recently, in October, during a quarterly earnings call, the company strongly hinted it was pursuing a streaming service.

Redbox has stated that they will launch the new service with a partner.  There is a lot of speculation that they will partner with Amazon.   A partnership between the two would make sense for two reasons:

First of all, Amazon recently leaked plans for an online streaming service, so we know they’re ready to play.  They could sweeten their offerings and attract more customers by offering access to Redbox’s DVD kiosks.

Secondly, Redbox is broke!  Coinstar, Redbox’s parent company is $390 million in debt.  They don’t have the capitol to acquire the movie licensing rights needed to take on Netflix. Partnering with Amazon could provide them access streaming content and attract more business to their popular red boxes.

Netflix has 350 million in cash and over 20 million subscribers  Their CEO, Reed Hastings recently stated that the company will invest significant resources towards international expansion later this year.  Netflix recently purchased movie streaming rights from Lionsgate, MGM and Paramount. They are also in negations to extend their licensing deal with Starz.  Needless to say, I think Redbox and Amazon need all the help they can get.

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