Light Reading

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        ADD A COMMENT
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
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
Between the CEOs
Affirmed Networks CEO: Digging Into NFV

5|28|15   |   40:26   |   (2) comments


Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Charter Seals Deals for TWC, Bright House
Mari Silbey, Senior Editor, Cable/Video, 5/26/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Charter Plans Business Services, Wireless Push
Alan Breznick, Cable/Video Practice Leader, 5/27/2015
Will Carriers Follow Facebook's Networking Lead?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/28/2015
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
On May 29th 10 AM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
Cats with Phones