Redbox Plans Website To Compete With Netflix

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News Posted: Tue, Jul 20 2010 12:18 PM

Redbox may announce a website for movie rentals in October in an attempt to challenge rival Netflix. At this point, it's still unclear whether this website would offer a DVD-by-mail service, direct downloads, streaming videos, or a combination of these services.

According to a report from Bloomberg, Redbox COO and former Netflix guy Mitch Lowe said his company may try to offer a greater variety of titles through an online service than it is able to offer at its 24,000 retail dispenser kiosks. Each of these kiosks holds only about 200 titles. Netflix offers 100,000 titles by mail and 20,000 older films online.

“The way we look at it is, How can it help us deliver to our customers things we can’t do in our kiosks?” Lowe said. “What role might it play in expanding our selection?”

Although it offers more titles than a Redbox kiosk, Netflix's DVD-by-mail service certainly has a drawback—users must wait multiple days between choosing a film and being able to watch it. For users who desire instant gratification, Netflix also offers an online streaming service with access to a wide variety of titles. In fact, Netflix's online stream service offers 100 times the number of titles in Redbox kiosks. To that end, Netflix seems to have the upper hand in comparison to Redbox. However, Netflix still has a challenge of getting devices that support its streaming service into the living rooms of users who don't care to watch video on their computer. Thus far, Netflix has had success in getting its Watch Instantly streaming service supported on a number of devices. Currently, all major game consoles as well as many set-top boxes, HDTVs, and Blu-ray players support Netflix streaming.

If Redbox decides to offer a streaming service, one solution to help the company get a jump start with the process may be to sign a deal with a company such as Sonic Solutions, which already has deals with many consumer electronics companies. Sonic Solutions has also negotiated Web rights with studios.

It will be interesting to see which route Redbox decides to go.

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acarzt replied on Tue, Jul 20 2010 5:02 PM

It seems like everyone is trying to get a chunk of Netflix's business.

I'm pretty happy with netflix tho. They are doing a lot of things right.

I hope they add support for 1080p tho and higher quality audio.

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AKwyn replied on Tue, Jul 20 2010 9:49 PM

acarzt I'm basically hoping the same thing here though Hulu Plus also has HD video so I'm sorta split between whether Redbox can hook my attention with their new website. If the movies are in HD then I'm all for it.

 

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3vi1 replied on Tue, Jul 20 2010 9:57 PM

NetFlix needs to switch to a DRM that doesn't prevent it from working with MoonLight, or even better they could switch from SilverLight to something that's actually cross-platform. Then, I will use it.

If Redbox releases an OS-agnostic solution first, I'll give them a shot. Until then I'll stick with Boxee, XBMC, and the billion on-demand movies my cable provider wants me to watch.

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acarzt replied on Wed, Jul 21 2010 12:44 AM

Hulu Plus is only tempting because of the few shows I would love to catch up on(and I can't find torrents for lol)

They need more content tho to get my vote.

I'm interested in this new service coming from lion's gate/whatever that companies name is.

The features sound nice... but i'd like to see what kind of content they offer.

Red box.... i'm not really that excited about them. But i'm curious what they can bring to the table... and competition is always a good thing :-)

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realneil replied on Wed, Jul 21 2010 6:49 PM

RedBox will have to an outrageous service to beat my Netflix account. I get three movies at a time sent to my door as well as no cost movies streamed to my Roku set-top box. I usually end up with 10 or more movies delivered in a month, and I don't even have a streaming count, but it's no small number. $16.95 per month is what I pay and that's a drop in the bucket for what I'm getting out of the service.

Redbox has their work cut out for them.

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acarzt replied on Wed, Jul 21 2010 8:56 PM

Yea no kidding Neil!

I friggin LOVE my netflix. So much so that I canceled my cable cuz I wasn't using it lol

Now I try to get everyone I know to get netflix. It's just.... so great!

Definitely beats renting DVDs from BlockBusted and Hollywad Video :-)

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