iPad News: Redbox Streaming Headed for the iPad?

Posted Feb 17, 2011 at 1:47PM EST by QJ Staff

Listed in: iPad News Tags: netflix ipad, Netflix streaming, streaming video

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Every time I pass my neighborhood Blockbuster, I think to myself, “Why are they still there?” The store sits on a large, obviously expensive piece of rental property in the middle of an area where many people have some connection to show business and almost all of them subscribe to Netflix. I can’t even remember how many years it’s been since I actually walked in there to rent a movie. But Netflix isn’t the only rival cleaning Blockbuster’s clock—there’s also a Redbox kiosk in every mall, offering $1 per night movie rentals for those who want their DVD rentals cheap and fast. Now Redbox is planning to go up against Netflix in another area—streaming video for the iPad and other devices. Netflix now offers a streaming-only subscription for $8 per month, with thousands of choices. To compete, Redbox would have to undercut Netflix pricing or offer more/newer films. Since Redbox already has a 28-day delay on new releases from studios, Netflix can beat them on new product—unless they partner with a more powerful ally. That could be Amazon, which has already expressed interest in starting its own video streaming service. If Redbox really wants to compete with Netflix, I have a suggestion for them—$1 one-night streaming rentals on recent films.

Apple’s iTunes Store does $3.99 movie rentals on newer films, with older ones for $.99. On Demand movies from cable companies are about the same for recent films. If Redbox could offer $1 one-time streaming rentals on films not yet available from Netflix Watch Instantly, that would definitely attract an audience. If they’re just going to offer what’s already available elsewhere, why bother?

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