Redbox developing online subscription-based streaming service

Summary:Watch out, Netflix. Redbox is finally looking to give the online rental giant some more competition.

Watch out, Netflix. Redbox is finally looking to give the online rental giant some more competition.

We actually should have seen this one coming a long time ago given that Redbox sent out a survey to its customer base last spring regarding an online video service for $3.95 per month.

According to Bloomberg, "Redbox film-rental division is working to develop a subscription streaming service, setting up potential competition with Netflix Inc. and Hulu LLC."

Bloomberg also cites that Redbox has a partner with an "an existing digital player" already lined up. Given that Amazon has already announced its plans launch a subscription-based streaming program itself, that would seem like the obvious answer. But the obvious is never much fun, so maybe we're in for a real surprise.

However, Redbox hasn't announced price points or a launch date just yet. If Redbox really sticks to that $3.95 per month plan for unlimited streaming (compared to Netflix's $7.95 monthly fee for Watch Instantly), we'll have a real battle going.

Redbox already has 30,000 DVD rental kiosks nationwide, but the days of going out to rent a movie are all but gone. If Redbox wants to stay in the rental game, it's time to get that content online where Americans don't have to run around for it.

Topics: Amazon


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider,, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for, Irish Americ... Full Bio

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