Redbox Instant to launch at $6 per month
Michelle Clancy | 03-12-2012
Redbox Instant by Verizon, the joint over-the-top (OTT) streaming service from the US telco giant and physical DVD rental company Redbox, is set to launch by the end of the year, priced at a Netflix-killing $6 per month.
The details of the service come via an exclusive report in GigaOm, which reports that the companies have set 17 December as a launch date. In addition to Web streaming, the service will launch with dedicated apps for Android, iOS and Xbox 360.
The $6 per month pricing is for unlimited access to Rebox Instant's whole library, but unlike Netflix it can only be accessed on up to five registered devices. For those who still enjoy the physical movie rental experience, an extra $2 will get two rentals per month from the 42,400 Redbox kiosks in the field, familiar across retail sites like grocery stores and drugstores nationwide (34,600 locations).
Unlike Netflix and other streaming services, customers also can rent or buy digital titles on demand, with prices starting at $0.99.
The companies have been working on the content profile for the service and in October they announced a deal with Warner Bros Home Entertainment to provide content for the service with a 28-day release window.
Redbox Instant, a joint venture between the telco and the Redbox kiosk-based physical disc rental company, will make Warner Bros titles available via subscription VOD and electronic sell-through (EST), and will support and distribute Warner Bros' Ultraviolet-enabled movies.
Verizon will be taking on a variety of competitors, most notably Netflix, which leads the domestic market. But it will also compete with cable's TV Everywhere strategies and, potentially, its own FiOS TV service. It appears that the telco is taking a multi-level approach to capturing the video opportunity: Verizon's wireless arm is marketing a quad-play bundle that includes cable TV service from Comcast, Cox and Time Warner Cable.
The Warner Bros deal is significant for Redbox Instant's ability to compete with Netflix specifically thanks to the fact that titles will be available 28 days after their retail release dates. Earlier in the year Warner Bros doubled the amount of time between the day that DVD and Blu-ray discs go on sale to the general public and movies' appearance on Netflix, to eight weeks.