Light Reading
Parent company Outerwall says rental streaming service Redbox Instant is growing, but it won't share subscriber numbers just yet.

Redbox Instant Grows, But How Much?

Mari Silbey
2/7/2014
50%
50%

Redbox Instant by Verizon appears to be growing. But Outerwall, the parent company for Redbox and partner with Verizon in the joint venture behind the subscription rental service, won't say by how much.

The Outerwall Inc. executive team says it isn't ready to disclose subscriber numbers or revenue gains just yet. However, Outerwall did say in its earnings call late Thursday that it will work closely with Verizon Communications Inc. (NYSE: VZ) to figure out how best to disclose more details as the service matures.

Although it didn't share much data, Outerwall did report that Redbox Instant continued to add new customers throughout 2013. Overall rental transactions rose, and average streaming times increased each month.

In addition, company executives took pains to point out that Redbox Instant has expanded to more devices faster than its competitors. In the fourth quarter, the streaming service launched on Xbox One, PS3 and PS4, Kindle Fire, and Windows 8. It's also available on the Xbox 360, iPhones and iPads, Android phones and tablets, Roku boxes, Google TV, Samsung smart TVs and Blu-ray players, and LG smart TVs.

While there are positive signs for Redbox Instant, the service still faces an uphill battle against such online video market leaders as Netflix Inc. (Nasdaq: NFLX) and Amazon.com Inc. (Nasdaq: AMZN). For $8 per month, Redbox offers subscribers streaming access to its online video library, along with four credits toward DVD rentals at Redbox kiosks. However, while Netflix and Amazon include TV show episodes and original content in their catalogs, Redbox offers just movies and video games. (See Verizon/Redbox Take a Swing at Netflix.)

— Mari Silbey, special to Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
2/12/2014 | 4:19:18 PM
Re: Redbox Instant Numbers
No doubt as the industry matures we'll end up with the usual scenario of several large players running the game and lots of startups enhancing their products or nipping at their heels!    There is so much media available now and at such low cost, it seems too good to be true.  I keep waiting for the Big Chill when they decide to clamp down and charge everyone $15 per movie.   Should that happen, I guess I'll be doing a lot more hanging out on Facebook.
TaraSeals
50%
50%
TaraSeals,
User Rank: Light Sabre
2/11/2014 | 1:44:34 PM
Re: Redbox Instant Numbers
That is such a horrific specter to consider--and after that last court decision it could all very well become reality. I like to think that the FCC will just re-classify broadband service so it falls under the same rubric as other telecom services (and therefore they can apply Net neutrality enforcement to it), but you're right, it remains to be seen.

I do think though that the OTT model in your scenario will just evolve--Netflix et al will cut pay-to-play delivery deals, possibly as part of overall cableco arrangements in which it becomes more of a premium network, like HBO, distributed via triple-play operators.
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
2/10/2014 | 10:41:58 PM
Re: Redbox Instant Numbers
Maybe they are waiting to see how the net neutrality debate plays out.

Imagine a day when Internet providers all become more like cable companies.  They offer the conduit, but also control the content offerings.  

Verizon would then have a combo of 4G wireless broadband and optical fiber, and it would have "bundles" of media services like streaming video channels.

At that point, Netflix would be left out in the cold as an isolated, content only service because the Verizon network would favor Redbox and reduce access to Netflix.

Then bring in sports events and so on and suddenly you have to sign up with the big boys to get the entertainment services you expect.
TaraSeals
100%
0%
TaraSeals,
User Rank: Light Sabre
2/10/2014 | 4:24:41 PM
Re: Redbox Instant Numbers
Well exactly-- it's like they're hiding it away in the attic. Not sure why...but they don't seem to want to make a lot of noise about it, that's for sure.
KBode
50%
50%
KBode,
User Rank: Light Sabre
2/9/2014 | 11:15:09 AM
Re: Redbox Instant Numbers
I expected to see much more attention paid to this on the marketing front by Verizon, but I very rarely see any real noise made about it, or any buzz on the consumer side. Streaming catalog still also seems skimpy when compared to Amazon and Netflix, despite what you'd think would be greater licensing leverage as a traditional TV provider. One of those things where they thought it would be a good idea, but are too afraid of cannibalizing traditional TV to give the effort the attention it really needs to succeed?
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
2/7/2014 | 5:23:05 PM
Re: Redbox Instant Numbers
The combination of streaming video with the convenience of Redbox DVD rental makes this potentially a winning combination. 
TaraSeals
50%
50%
TaraSeals,
User Rank: Light Sabre
2/7/2014 | 1:46:29 PM
Redbox Instant Numbers
I'm very, very curious to see what kind of traction Verizon is getting with this. Other online streamers are reporting giganto gains--but VzW is conspicuously silent when it comes to touting market wins. The obvious conclusion would be that it's not going very well. Is this Verizon not putting marketing resources into it? Is it too crowded of a market already? Does its need to avoid cannibalizing FiOS make Redbox Instant ultimateely untenable? I would love to hear what they had to say on any of that.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Paul Bunyan's Giant Gigabit Plans

12|22|14   |   03:26   |   (0) comments


Gary Johnson, the CEO and GM of Minnesota rural operator Paul Bunyan Communications, discusses the company's 5,000-square-mile gigabit network rollout.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
Google Steering Android Towards Cars – Report
Dan Jones, Mobile Editor, 12/19/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
Like Us on Facebook
Twitter Feed
Webinar Archive