Redbox Instant... should Netflix be worried?

So Redbox Instant finally unveiled their monthly streaming service pricing at $8 a month. That's the same price as Netflix so is it better? Well.. it also includes 4 one-night DVD rentals per month from any of their kiosks... and for $1 more a month, you can upgrade to BluRay discs.

I think it will hinge on what kind of offerings Redbox has in their streaming catalog... and if they can get penetration on Smart TVs, streaming devices and so forth. It's not going to go live until early 2012 but with Netflix signing deals with Disney, it might be harder than Redbox thinks.
http://www.engadget.com/2012/12/12/redbox-instant-pricing/

I may try Redbox Instant just for the DVDs... at $2, that's a decent price that includes streaming... but I'll keep Netflix too.

They're all the same with different plus/minus points.  Netflix rules with kid's content.  Amazon Prime has free 2 day shipping.  Hulu has better/more recent TV programming.  Now Redbox will add DVD/Blu-Ray from kiosks for a minimal fee.  But they all suck in terms of streaming selection.  Yes, you might be able to find something watchable, but I keep Blu-Ray rentals with Netflix cuz I want recent blockbusters and don't like going back and forth to kiosks.  I also hate commercials so won't ever subscribe to Hulu.  I would pay extra for no commercials and emailed Hulu about this and got the runaround.

Netflix should be worried, not cuz of Redbox, but because they're losing customers and money.  All that content and licenses cost money.  Will Redbox worsen Netflix's situation?  I dunno, different consumers, but who knows.  Everyone wants a piece of this pie.  I think the bigger threat to all of these companies is the one that hasn't launched yet.  There's rumors galore on Apple in negotiations with content providers for a streaming solution, either an Apple HDTV or another iteration of AppleTV set top device.  Will it ever see the light of day?  I have no idea.  But I'm sure Cable, Satellite, and these streaming online companies are very concerned about the possibility. 

Just to clarify, Redbox is $8 INCLUDING 4 DVDs per month... the extra $1 is for BluRays. So for the same price of Netflix you get DVD service too.

irvinehomeowner said:

Just to clarify, Redbox is $8 INCLUDING 4 DVDs per month... the extra $1 is for BluRays. So for the same price of Netflix you get DVD service too.

Click to expand...

I can't ever go back to standard DVD, it's a non-starter for me.  It's like watching a football game in hi def and switching to standard def on accident.  Once you go blu-ray, you don't go back.  Not only for the better picture quality but the better sound codecs in blu-ray for surround.  $1 is nothing, so essentially redbox is throwing in 4 free movie rentals a month.  That undercuts Netflix by a fair margin, except for us lazy folk that don't wanna go to the supermarket to get a blu-ray and then return it the next day.  Standard def is ok for my daughter watching cartoons tho and Netflix has a great selection of kids content.

Upscaled DVD is okay... esp compared to streaming content.

What would make the Redbox deal better is if the DVD rentals had rollover that expired every 3 or 6 months (so if you didn't you use 4 rentals in January, you could use 8 in February).

Too bad you can't mail back the DVD after you're done (although I understand that breaks the whole Redbox 1-day rental model).

But I'm a big proponent of the death of optical media anyways... either stream it or buy the digital copy. If those DVD rentals were game rentals instead... that would be a no-brainer for my kid.