Published: Fri, December 15, 2017
IT | By Lester Massey

Redbox is Launching a New Streaming Service

Redbox is Launching a New Streaming Service

Redbox, which built its business on renting DVDs from storefront kiosks, is thinking outside the box with the launch of a new video streaming service Wednesday.

A few years ago Redbox and Verizon teamed up for a movie streaming service called Redbox Instant. Purchased content can be downloaded for offline, on-the-go viewing.

"This is really about expanding the options for our consumers", said CEO Galen Smith. The new service isn't like Netflix or HBO: there are no subscription fees, and customers just pay for each movie or show they rent or buy.

Smith became CEO of Redbox past year after Apollo Global Management bought the struggling company for about $1.6 billion.

Taking on Netflix, Amazon and a growing list of competitors, Redbox On Demand offers more than 7,000 movie and TV titles, including new releases. The hottest new movie releases including Dunkirk, The Lego Ninjago Movie and Flatliners now on EST and Kingsman: The Golden Circle, Home Again, Detroit and All Saints now on VOD, and more are now available.

Indeed, after paring back its kiosk footprint in recent years, Redbox will have added a 1,750 net new kiosks in 2017 with Dollar General locations making up the large majority of the new installs. The short-lived subscription offering was aimed more squarely at the Netflix model, but it failed to gain traction.

Technically, Redbox On Demand is still in beta, but this marks the broader launch of the streaming service that Redbox has been testing for over a year. "(That) is a subscription service, and they do not offer new releases".

The service, which is still in beta, is available via, the Redbox app for Android and iOS-enabled devices, as well as on Apple TV, Chromecast, and LG and Samsung smart TVs.

"We still see opportunity, that there is incremental demand for physical rental out there", Smith said. That includes 45 million active email subscribers, 35 million app users and 27 million loyalty club members.

"We have a powerful ability to connect with and transact with consumers", Smith said. Smith believes Redbox On Demand can help drive up revenue for itself and its studio partners.

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