With Netflix, Hulu and Amazon Instant Video dominating the streaming movie/TV arena, there are bound to be some casualties. Tomorrow will see one of the often forgotten about services close down as Redbox Instant calls it a day.
Redbox Instant was formed out of a team up between Outerwall and Verizon. Earlier this year, Redbox Instant closed new sign ups because it was hit by hackers which just shaved more of the appeal off the service. On top of that, the union hasn’t been fruitful as it never really gave Netflix or Amazon a run for their money and has struggled to make a profit. As a matter of fact, it has struggled to make an impact on streaming video period.
It could be said that Redbox Instant choosing not be aggressive against Netflix was a flaw in its plan. The service went the “bare bones” Netflix/Amazon Instant approach by offering a smaller selection,and a $6 plan to start. It also didn’t go into original content or push the technology around the service.
It offered just enough, but it wasn’t a total package streaming service. In a way, the demise of Redbox’s online services in a market dominated by Netflix and Amazon mirrors the demise of Blockbuster with physical media at the hands of the company and Netflix.
Even though Redbox Instant will be closing down, the primary Redbox service of kiosks offering DVDs and Blu-rays will remain in operation.