Skip to main content

Streaming Shutdown: Redbox, Verizon give up on Redbox Instant

redbox-instant
Calling it quits after less than two years in operation, Redbox and Verizon are closing down the streaming subscription component of Redbox’s rental business. Likely attributed to a lack of subscribers as well as rumors of subscriber credit card information being used for fraudulent purchases, Redbox struggled significantly to pull market share away from competitors like Netflix, Amazon Instant Video and Hulu Plus. According to the timeline of the shutdown process, Redbox will allow subscribers to continue streaming up until 11:59 p.m. October 7 and will issue refunds to customers that recently renewed their subscription.

Admittedly, Redbox entered the crowded market of streaming video services at a late date during December 2012. While services like Netflix and Hulu Plus were already heavily investing money in creating original content, Redbox was attempting to compete against the existing catalog of content available on other services. Redbox originally launched with a small percentage of the same competing content, but included a number of physical rentals each month in the deal. Hypothetically, it was arguably a good deal for existing Redbox users that rented multiple discs per month, assuming those users were savvy to streaming video.

Related Videos

As Redbox and Verizon attempted to improve the library of streaming content on Redbox Instant over the last 18 months, competitors were gaining accolades from critics and subscribers for original programming. In addition, the credit card fraud issue caused Redbox to shut down the ability to subscribe to Redbox Instant (as a new subscriber) approximately three months ago. According to company insiders, the streaming service has been operating at a loss and wasn’t increasing subscribers at a rate that would have brought the service to a porfitable point in the near future.

It’s likely that Redbox Instant applications on various hardware platforms will be removed in the near future. The application has been available on the PS4 and Roku 3 since late 2013 as well as the Xbox One since early 2014. The application has also been available for Android and iOS users as well.

Editors' Recommendations

Netflix admits it has been throttling its streams on AT&T and Verizon for years
Netflix-Android

In November, T-Mobile introduced Binge On, which offered unlimited video streaming from certain services like Netflix and Hulu without affecting users' data caps, but it quickly drew ire from all sides. Some claimed the new feature violated Net neutrality, and while this would continue to be debated, customers weren't happy that the video was capped at 480p.

Since the introduction of Binge On, T-Mobile CEO John Legere has been adamantly defending the feature, taking things to a new level last week when he accused rivals of capping Netflix streams for their users. While it turned out that the streams were indeed being throttled, wireless providers weren't the ones doing the throttling. Netflix was, and, by it's own admission, the company has been doing so for a long time.

Read more
The Yahoo Video Guide App for Streaming Sites Helps You Decide What to Watch
Yahoo Logo

Back in the day, before the dawn of the Internet, when we were all glued to our television sets, the humble TV guide was the go-to source for all our entertainment needs. Flipping through its pages revealed a treasure trove of listings and recommendations, allowing us to plan our viewing schedules accordingly.

But with the proliferation of streaming sites, who shall we turn to for guidance amidst this abundance of riches? Worry not cord-cutters; Yahoo has got you covered with its new Video Guide app.

Read more
Amazon will launch Prime Instant Video in Japan next month
amazon vr instant video platform year in review prime

Following Netflix's September 2 launch in Japan, Amazon is pushing forward to launch Prime Instant Video during September as well. Providing unlimited access to selected videos within the Prime Instant Video section, Japanese consumers will have to be subscribed to Amazon Prime in order to access the content. Amazon Prime currently costs 3,900 yen a year in Japan, roughly $32.50.

Alternatively, Netflix will be launching two plans for SD and HD streaming that will cost less than $65 a year and less than $95 a year respectively. Of course, the content library is likely to be significantly larger on Netflix compared to Amazon Prime Instant Video, similar to the two competing content libraries accessible to North American users. However, Amazon's core advantage over Netflix is the company has been running Amazon Prime in Japan for 10 years and already has an existing base of subscribers.

Read more