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.
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?