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 Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, 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
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed