While only a year and half old, Redbox Instant, the online moving streaming service from DVD-rental kiosk chain Redbox, will be shutting down next week on October 7th. Having launched in March 2013, in partnership with Verizon, Redbox Instant tried to differentiate itself from movie streaming giants Netflix and Hulu by offering dirt-cheap subscriptions plans, one of which combined streaming and DVD rentals.
Unfortunately it looks like customers just weren’t that interested, as a Redbox Instant spokesperson said that both they and Verizon made the decision to close the service after feeling it wasn’t as successful as they hoped. In a statement posted to the Redbox Instant website, the company says its customers can continue using the streaming service and their coupons for the DVD kiosks until 11:59 PM Pacific on October 7th. It was added that customers are being emailed about possible refunds, with more information to be posted on the site on October 10th.
Redbox Instant’s plans were priced at $6 and $8 per month, each offering streaming access to a rotating selection of some 4,500 movies, with the second plan also including monthly coupons that could be redeemed at the kiosks for DVD rentals. Redbox was wise in not trying to go head-to-head with Netflix’s unlimited, all-encompassing library, however, while the later, and fellow rival Hulu, found great success in expanding to TV shows, Redbox stuck almost strictly to movies.
This is certainly the nail in the coffin for Redbox Instant, but the end comes as no surprise to many, as the service has had new customer sign-ups disabled for the last three months. This is was because of an ongoing issue with credit card fraud, but it also resulted in existing customers with expiring cards being unable to update payment information and continue their subscription. As for Redbox’s existing DVD kiosks, it appears they will continue to operate without change.
SOURCE Redbox Instant