It looks like Netflix has knocked out a computer in the streaming movies and tv show market. Redbox Instant, a service partnered with Verizon, emailed current customers and post a note on its website saying the service would officially shut down Oct. 7. Yes that’s only a few days away, which leaves us wondering why Redbox wanted to close the service so quickly.
Amazon, Hulu, Netflix are all strong competition with the massive amount of movies, tv shows, and other original content they’ve managed to create. Also Redbox Instant was caught in the middle of credit card fraud which made it even harder to gain more subscribers. The idea they had to combine online streaming with their massive network of Kiosk, but the online catalog lacked content compared to others. And for 7 dollars a month their wasn’t much incentive to sign up when you were able to get better tv shows and movies from Netflix.
While Redbox Instant is only shutting down, it begs the question of how well Redbox is doing overall. The company closed hundred of kiosk earlier this year, and they recently were purchased by Outerwall the company behind Coinstar. If Netflix continues to grow Redbox could be effected even more, and DVD sells could be affected. This also means great news for cord cutters who want access to more current movies on Netflix.
Overall it looks like all physical media is continue to take a fall while streaming and digital rentals continue to grow each year. I almost look forward to the death of Redbox, because Netflix will get even more deals with movie studios. Tell us in the comments below if you were one of the maybe 30 subscribers to Redbox Instant and if you weren’t tell us what you think about the closing of the service.