Redbox Mulls Low-Cost Video Streaming Service

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News Posted: Fri, Apr 9 2010 1:33 AM
Does Redbox have its eyes on the video streaming market? A survey being sent to Redbox customers suggests the company may be considering a streaming service that would cost a fraction of what Netflix charges. According to High-Def Digest, the survey asks customers to rate their interest in a plan that would cost $3.95 per month and provide access to unlimited streaming as well as four free rentals from Redbox kiosks. Considering a Redbox rental costs a dollar, anyone who rents four movies or more per month would essentially get the streaming service for free.

A Redbox spokesman confirmed that a survey had been sent to customers with questions regarding a low-cost streaming service option. Even so, he told PC Magazine the survey shouldn't be interpreted to mean Redbox is planning to launch a streaming service: "It's not necessarily an indication of something that Redbox is interested in doing…. Redbox certainly understands that the entertainment model is continually evolving."

Netflix's competitive offering costs $8.99 per month for unlimited streaming and unlimited DVD rentals with one disc out at a time. Netflix currently supports streaming to Wii, PS3, and Xbox 360 consoles as well as PCs and Macs.

The survey did not say whether the Redbox streaming service would work with video game consoles, PCs, or other devices.
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3vi1 replied on Fri, Apr 9 2010 8:53 AM

It wouldn't surprise me if they supported streaming to consoles, as they're also testing video game rentals in a few locations.

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3vi1:

It wouldn't surprise me if they supported streaming to consoles, as they're also testing video game rentals in a few locations.

It wouldn't surprise me either, if Redbox offers better service to all three consoles, AND a lower monthly price, then I can see a major dent in Netflix. I don't use Netflix at all, personally because I don't have a credit card haha. 

These streaming services have always confused me though. They have thousands of movies on demand in stock, but what process do they go through to retrieve all of this data? 

I guess I can't wrap my head around it, but it just seems like it wouldn't be a profitable business. But I know that it is due to Netflix's success. 

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Dun dun duuuuuun.   I guess I'm not surprised by this if they want to get more of the market.  I really wonder how they're going to do it though, because even Netflix is having a hard time trying to get licenses to be able to offer video via streaming. Only time will tell

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RyuGTX replied on Fri, Apr 9 2010 5:08 PM

Is there any sort of deal on contract between Netflix and the consoles that would keep competitors from getting onto services like Xbox Live? If not, I wonder how much it would cost to get your video streaming service onto Xbox Live and the other online networks.

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RyuGTX:

Is there any sort of deal on contract between Netflix and the consoles that would keep competitors from getting onto services like Xbox Live? If not, I wonder how much it would cost to get your video streaming service onto Xbox Live and the other online networks.

You know I often wonder that myself. Microsoft probably has the initial contract and therefore leeway over it. The problem is that so many people have already settled in with Netflix that they would probably cause a commotion if their services were suddenly switched. 

You and I know that the Netflix customers wouldn't take the time to terminate their Netflix service and switch to the cheaper alternative. 

 

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These Redboxs are SOO cool!

The concept of renting a movie for a dollar when you go to get your Ice cream it great. I actually see lines of people to these machines. Plus it keeps people from destroying the rentals, because there is an electronic log.

It will be interesting to see if they can parlay that into a streaming service. Although they might not have the hardware in place like Netflixs does. I am still wondering how they are going to make this whole streaming/ downloading thing actually work. The rights will have to be on a per site basis, so essentially you will have many sites that will be like an online blockbuster.

I think we are seeing Apple lead the way in content protection, by how they are trying to download your library to check its content. Also with Apple they have multiple apps and a constant conection, so they can get past your protections as long as their apps are allowed.

I would like to see Redbox start an online video store where you can buy H264 files instead of getting a BR disc, and rentals.

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Netflix also has a contract with Starz, allowing them to stream all the Starz on Demand content.

Another company offering streaming movies is a welcome change, but I don't see them competing with Netflix any time soon. It will take them a long time to build up their content library.

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realneil replied on Sat, Apr 10 2010 9:29 PM

I use Netflix and I like their service and selection.

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AKwyn replied on Sat, Apr 10 2010 10:37 PM

I just love redbox, I can rent DVD's of movies that I didn't get to watch and then I can return them. Simple as that.

Although redbox entering the steaming business is interesting, they do have some backlash due to the fact that renting doesn't really fit in with Hollywood's view of content protection and it's going to be tough for redbox to gain support for their streaming service.

 

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