Redbox To Launch Streaming Service

Published by: Frank Galvano on 17th Feb 2011 | View all blogs by Frank Galvano

Redbox To Launch Streaming Service

According to a report in the Los Angeles Times' Company Town section, Redbox President Mitch Lowe told analysts Thursday that its soon-to-be-unveiled online movie service will function on a subscription basis much like the services offered by Netflix and Hulu Plus. When Redbox first hinted at an online service, it wasn't clear whether they would go with the subscription service or with a pay-per-view model, like those offered by iTunes, Zune, and Amazon Video.

Under the subscription model, users will pay a monthly fee, which will allow them to not only stream content to various devices, but also allow them to check out DVDs at Redbox kiosks. Lowe mentioned that the company would take on a partner for the new service, but didn't specify who that would be. CinemaNow was rumored as a potential partner several weeks ago, but the Seattle Times has suggested it could be Wal-Mart or Amazon.

In other Redbox-related news, Walt Disney is rumored to be considering a rise in the amount it charges Redbox and Netflix up to the full wholesale value. Word is that the two companies still would not have access to titles until the day DVDs go on sale.

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