The popular DVD and Blu-ray kiosk company Redbox, Verizon Communications Inc. and Coinstar have decided to come together for a joint venture, which remains unnamed, and will launch later this year.
There are no details yet concerning how much money it will cost or what type of movies or TV shows they will have. Members of the companies have been tight-lipped about the information for the project.
Parties involved are pleased with the business decisions and excited about expanding boundaries further than just the little red machine that sits outside of a local Wal-Mart or a CVS Pharmacy.
Officials from the companies are sure they will be able to provide people with convenience and more possibilities when it comes to choosing which way they want to watch a movie. They are also confident that streaming videos will give Redbox a much needed platform to reach consumers all around the world.
The partnership will combine the easy rental of movies from Redbox, along with streaming the movies online, and on -demand services from Verizon as well.
Customers will have to pay a somewhat affordable price for a monthly subscription, but it will still be cheaper than its rival company, Netflix.
Although there has been a slight increase in price at the kiosks, it has not slowed down consumers’ desires to continue doing business with the company. Redbox offers a selection of newer DVDs versus Netflix, which, due to regulations, has a larger selection of older movies.
In the future, Redbox will also have a larger selection of older movies which will have streaming capabilities.
Netflix, once the leading place for renting movies has now begun to struggle, especially in 2011. Many consumers are getting turned off by the fact that after they finish one movie and then return it, they have to wait an additional two days to receive another movie from their list.
The company has split its streaming and mailing DVD services, which resulted in hiking customers’ bills. Since Netflix has agreed to extend its 28-day wait for new releases to a 56-day wait for Warner Bros., the anticipation for others has driven them to visit the nearest Redbox.
Considering the convenience that both companies offer, their decision to combine their effort may be a success.
With all the rumors and speculation, only time will tell if this joint venture will prove to be better than Netflix.