Redbox Instant Goes Live

Screen shot 2013-03-17 at 3.47.56 PMAlthough it was hardly unexpected news, I’m intrigued by news that Redbox has launched a subscription video-on-demand (SVOD) service to compete with Netflix, Redbox Instant, in collaboration with Verizon. Like Netflix, the service will cost $8 per month, but the selection for the streaming service, at least for now, is slightly smaller at 4,600 titles, although that also includes the right to rent four DVDs per month from the company’s ubiquitous kiosks. In addition, consumers can rent or buy up to 4,000 titles from the website, providing users with a fairly wide variety of choices when it comes to accessing content.

Redbox’s selections in both their kiosks and on streaming heavily favor movie titles, and they continue to have access to movies that are not yet available through Netflix. The public release took place after a beta test saw tens of thousands of participants continuing their membership after the first month, when their free access to the service ended. So how might this news shape the evolving SVOD landscape? I have a few tentative hunches.

First, like the Consumer Reports reviewer, I think Redbox Instant will have to be made available on more devices before it achieves widespread popularity. Although the service supports Apple and iOS users, you currently cannot access Redbox Instant through a Roku player (although I imagine that will happen soon). But that’s a minor technological or logistical hurdle, for the most part.

More crucially, I think Redbox Instant provides a further illustration of our a la carte, menu-driven future when it comes to media consumption. Due to the fact that streaming services are competing for (often exclusive) streaming rights to movies and TV shows, my hunch is that this launch will contribute to the practice of combining multiple streaming accounts, turning Redbox Intant into something like another cable channel alongside of Netflix, Hulu Plus, and regular channels such as HBO or Comedy Central. As Redbox Instant CEO Shawn Strickland confirmed in the New Tee Vee article, “We think that the over-the-top space will evolve very similarly to the cable and network space,” although unlike Netflix, it’s worth noting that Redbox continues to report that they have no plans to invest in original content, and given the popularity of their existing model, I don’t see a particularly strong incentive for them to change directions on that.

Access to multiple SVOD services could contribute to slight increases in cord cutting, although given the popularity of live sports in particular, my hunch is that cord cutting will remain a somewhat limited phenomenon. And instead of a single “celestial multiplex” as Chris Anderson described it, in his discussion of the long tail, we will have instead–a series of competing, but often complementary, “cloud miniplexes” where we can go in different situations depending on the content  we want to see at any given time.

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