Redbox to start streaming in 2011

[Nick]

"...a Redbox survey last April that asked customers how
they'd feel about a $3.95-a-month plan that would include
unlimited video streaming plus four free DVD rentals."

From Yahoo News:.After months of speculation, executives for Redbox owner Coinstar have confirmed that the wildly popular DVD kiosk company will, indeed, be going into the streaming business next year — and that it'll do so with the help of a partner, although no deals have been struck yet.

During the company's quarterly earnings call Thursday, Coinstar CEO Paul Davis said that Redbox is in "detailed negotiations with a number of highly interested parties" looking to join forces on movie streaming, and that the company hopes to launch a "Redbox-branded" online service sometime in 2011. >>>More @ Yahoo.com (http://news.yahoo.com/s/yblog_technews/20101028/tc_yblog_technews/redbox-to-start-streaming-in-2011-with-a-partner-to-be-named-later)

[SayWhat?]

Stream, no, not interested.

Download overnight (when bandwidth isn't monitored) and watch later, maybe.

[Islandguy43]

Hey for $3.50 a month, I am sure Netflix will take notice and may have to adjust their pricing too. This could end up a Win Win for consumers.:)

[photostudent]

This and Netflix are a form of a la carte delivery. Like Itunes it is the way people would really prefer their media. In a free market it is a paradigm that will be successful. There will be some pushback from the studios and "others". When that happened to Blockbuster some years ago they just started investing in productions so they could not be excluded from the distribution process. I am sure Netflix and RedBox have the financial resources to do the same.

[Phil T]

FYI,Netflix streaming has been down most of the day. Not a good way to attract new customers.

[Gloria_Chavez]

Netflix will have to increase prices next year, when they reup with Starz. Right now, it's paying 25M a year to Starz, which features half of the 30 most popular streams. Two months ago, it inked a deal with Epix for 200M, for fewer new titles. The upshot? Starz will demand, and probably get, at least 250M a year, from Netflix.

What can Redbox provide at 3.95 a month? No se. But it and its partner may be willing to sustain operating losses for a long time in order to establish market share. If so, the 3.95 makes sense.

I agree with SayWhat about streaming movies overnight to watch later, for which a hard drive would be necessary. I've been told by engineers here at DBStalk.com that shortens the life of the set-top box, which may be an issue.

Also, you'd have to consider whether the content owner would feel comfortable with hard drive storage.

About a year ago, Redbox was considering dowloading movies to USB drivers in their kiosks. Perhaps it still is.