Redbox launches new On Demand service for movie and TV streaming

Redbox On Demand: What You Need To Know

Redbox is taking another shot at a streaming video service with the launch of its new transactional video platform that will allow customers to rent and buy movies from home. The service will include content from all the major studios, including Warner Bros., Paramount Pictures, Lionsgate, Sony Pictures Entertainment, 20th Century Fox and Universal Pictures. Titles can be rented or purchased for streaming with prices starting at $3.99 for 48-hour VOD rentals and $9.99 for EST transactions.

Right now the services does not include any Disney movies as Disney and Redbox are currently in a lawsuit over Redbox selling digital download codes to Disney movies.

"Redbox customers have asked, and today we're delivering an On Demand option that offers them the best of both the physical and digital worlds", said Galen Smith, CEO of Redbox.

Last year, Redbox began testing it transactional service. Speaking to Variety, Redbox CEO Galen Smith described the new service as a "natural extension" of the company's rental kiosks.

This is not the first foray into digital streaming for Redbox, which three years ago rolled out a service called Redbox Instant. With mostly older content, it failed to gain traction and the partners folded the JV in October 2014.

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That was in 2013, when Redbox's then-parent company Outerwall - in a joint venture with Verizon - launched Redbox Instant, a Netflix-style subscription service with about 6,000 movies. He believes the new offering, which doesn't require a subscription and includes more new releases, will resonate with consumers.

"It's really, really important to understand that there's segmentation in the market", said Smith.

Have you tested out the new service?

At the same time, the lower price point of the physical video rentals - DVDs start at $1.50 per night - provides a value proposition that will continue to have its place in the Redbox business model for the foreseeable future, he said.

Indeed, after paring back its kiosk footprint in recent years, Redbox will have added a 1,750 net new kiosks in 2017 with Dollar General locations making up the large majority of the new installs. The company has more than 41,500 kiosks in all, which each house about 700 titles.

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