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Redbox Confirms Streaming Service To Rival Netflix

February 17, 2011 by Brandon Comments Off on Redbox Confirms Streaming Service To Rival Netflix divider image

For a long time, it has been rumored that Rexbox would diverge from solely offering rentals in order to bring consumers even more media. The service that has revolutionized the way movies are rented has recently made the announcement that they will be offering a streaming service that would be similar to Netflix.

According to ZDNet, the company’s president has announced that they will be extending their brand by offering this online video streaming service. The service will be a streaming service that requires a subscription, rather than using the pay-per-transaction that the Redbox Kiosks currently use.

Their competition in Netflix will not be easy, as reports show that Netflix has already collected more than 20 million subscribers to their mailing and Internet streaming subscription plans.

In order to float their service, Redbox has said that they will be partnering with another service. It has been rumored that Amazon will be the service partnering with Redbox in order to deliver the streaming media service. While these are still rumors, there has been a limited amount of evidence to prove that this is a possibility. Amazon has reportedly been in talks with studios to offer their own Netflix-esque streaming service.

Redbox, a subsidiary of Coinstar, ended up dropping in revenue in the last quarter of 2010, which may be the primary drive behind Redbox expanding to the Internet in order to deliver streaming service. The revenue generated by the kiosks had slipped a whopping 26 percent in the fourth quarter. Analysts blame the 28-day waiting period for the reduced revenue, as has the Chief Executive of Coinstar.

Blockbuster rental kiosks have seemingly been taking some of the revenue, as Blockbuster’s advertisements have been pushing the fact that they get movies quicker than the Redbox service.

Delivery of the streaming service has been a debate, and it is questionable whether it would over video game consoles, such as the PlayStation 3, or exclusive to computers and televisions that are capable of delivering Internet based streaming.

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