DVD rental company Redbox has started to test a new movie streaming and download service with some of its customers, according to Variety.

Known for its DVD rental kiosks, Redbox has dubbed its latest online service "Redbox Digital", which comes two years after the company shut down Redbox Instant, the ill-fated joint venture with Verizon that officially launched in early 2013.

redboxThe subscription-based service was patently unable to compete with the likes of Netflix, and Redbox has reportedly learned from the experience: it's staying away from subscriptions in order to concentrate on transactional video on demand, according to sources familiar with the company's plans.

An app for the service similar in appearance to Netflix showed up on the App Store last week, allowing trial users to stream or download content from the company's digital catalog. A company spokesmen contacted Variety via email to confirm the news:

We are testing a potential new transactional digital VOD and EST offering, with a small subset of our customers, designed to complement our core kiosk rental business. As we test and learn from our customers, we will make evaluations that determine any future course of action.

The Redbox Digital catalog is said to be dependent on the company's deals with movie studios, meaning some movies could be available at kiosks when they're not available for streaming. However, the digital catalog will have a much larger offering than kiosks, which usually only hold a few hundred titles.

No word was given on pricing, but typical one-off streaming costs are likely work out more expensive than the $1.50 Redbox customers currently pay for physical disc rentals.

Tag: Redbox

Top Rated Comments

jermy4 Avatar
100 months ago
I guess they're comparing with similar digital rentals already offered by iTunes and whatnot. Although I agree they should undercut existing services if they expect to it to survive this time round.
If they can match the prices the kiosks are charging it could be a success just based on convenience alone.
Score: 6 Votes (Like | Disagree)
cyberlocke Avatar
100 months ago
It's simple economics that how. There is a premium on convenience. It takes more time and effort to go to a kiosk & then have to return it next day. That diminishes it's value compared to streaming which is "on demand," even at 1am, doesn't have to be returned w/i 24hrs.

Also streaming permits a larger library than a physical RedBox can hold so in many instances streaming is the only way to rent a video which also allows for a higher price.

I don't see where RedBox can compete in this space though unless they undercut Apple and Amazon. I'm unsure the movie companies will allow it unless maybe RedBox only gets titles 30 or 60 days after Apple and Amazon.
I think this is where supply and demand doesn't quite fit the digital economy. It's done simply to maximize profit. And technically the supply is greater with digital streaming, therefore if demand remains the same, cost should actually go down.

Convenience should have nothing to do with it. Digital is all about convenience, it's inherent. By your logic, everything digital should cost more. That's not the future I was promised. Otherwise we'd just be adding layers of luxury, not actually improving anything.
Score: 3 Votes (Like | Disagree)
furi0usbee Avatar
100 months ago
How can streaming be MORE expensive than physical media rentals?
Score: 2 Votes (Like | Disagree)
Telos101 Avatar
100 months ago
How can streaming be MORE expensive than physical media rentals?
I guess they're comparing with similar digital rentals already offered by iTunes and whatnot. Although I agree they should undercut existing services if they expect to it to survive this time round.
Score: 2 Votes (Like | Disagree)
DogHouseDub Avatar
100 months ago
Seeing people lined up at the local Redbox always feels like a statement on the US socioeconomic chasm...
Score: 2 Votes (Like | Disagree)
ArtOfWarfare Avatar
100 months ago
How can streaming be MORE expensive than physical media rentals?
I think that with physical media, Redbox counts on you losing the disk or forgetting to return it quickly enough.

So though they advertise prices as low as $1-2, they're counting on the fact that, on average, someone will have the disk for say, 2.5 days, so actually, on average they're making $2.50-$5 per rental.

I wonder if they could have the same kind of model with a streaming service, where you have to explicitly press a "return" button somewhere on the website, and they don't offer any reminders that that button has to be pressed after the movie is watched.

It'd seem sleazy and apparent that the're counting on users forgetting to hit that button, but they've always been counting on users forgetting to return the disk, so this is no different morally... it's just a bit more transparent that that's how they subsidize the service for people who actually remember.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...