Friday, July 22, 2016

Redbox Tries Streaming Again

When Redbox first partnered with Verizon three years ago, their joint venture, titled Redbox Instant, was seen as a possible competitor to Netflix and Hulu.  It was a strategy to expand from the DVD kiosk business toward a streaming one with a partner with a great deal of experience in mobile.  For whatever reason, that venture failed and Redbox Instant died last year. 

Since then, Verizon has been experimenting with their own subscription streaming mobile service. And now Redbox has decided to go it alone too with a new venture dubbed Redbox Digital.  But rather than be a monthly license fee subscription business, it appears that this new venture will attempt a transactional model.  According to Variety, "Redbox hasn’t said anything about pricing or catalog for Redbox Digital, but one can assume that it will largely mirror that of other services that allow users to pay to rent or own individual titles, including iTunes, Vudu and Google Play. That means that streaming rentals will likely be significantly more expensive than the $1.50 Redbox customers currently pay for physical disc rentals."

Why did the Verizon - Redbox Instant partnership fail?  What did each side learn as they independently create other digital streaming businesses?    And can either of these two succeed against the respective incumbents.  The opportunity is there as long as each can learn from their past mistakes. I'd love to help.

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