Redbox Instant Streaming Plan Takes on Netflix
DVD kiosk operator Redbox is launching a challenge to Netflix’s streaming-video supremacy.
Later this month, Redbox will offer an unlimited streaming-video plan that includes movies from Warner Bros. and pay TV channel Epix, along with four nights of physical DVD rentals, for $8 a month, or $9 a month if customers want Blu-ray discs.
The offering is a direct attack on Netflix Inc. and is priced even lower than the $10-a-month DVD and streaming plan that Netflix abandoned a year ago. The lowest price plan from Netflix that combines DVDs-by-mail and streaming is now $16 a month.
The new service, called Redbox Instant by Verizon, is "targeted squarely at movie lovers," said Shawn Strickland, the chief executive of the joint venture between Redbox parent Coinstar Inc., which is based in Bellevue, Wash., and New York-based Verizon Communications Inc.
The service won’t include TV shows when it launches on an invitation-only basis before the end of the year. Video game disc rentals, which cost $2 a night, are also not included in the plan.
While the price and features of the Redbox service are similar to what’s offered by Netflix, its library is smaller and focused mainly on the most popular Hollywood fare, which Strickland says are the movies that "really matter in the marketplace."
Redbox kiosks carry the top 200 recent movies from the major studios and rent DVDs out for $1.20 per night and Blu-ray discs for $1.50 per night with the swipe of a credit card. The streaming plan will feature about 5,500 movies from the libraries of Warner Bros. and Epix, which is owned by Paramount Pictures, MGM and Lionsgate.