Redbox Confirms Streaming in 2011, May Not Follow Netflix

Movie kiosk operator Redbox has confirmed in a conference call late this week that it's planning to offer Internet movie streaming in 2011. The CEO of parent company Coinstar, Paul Davis, explained that there were talks with a "number of highly interested parties" hoping to start a Redbox Internet service in 2011. Physical rentals were still to be a core feature, but Internet video was a "significant opportunity," Davis said.   The executive warned investors not to presume that it would follow the $4 monthly subscription model proposed in a survey earlier this year. It was a "bit premature" to assume that Redbox would follow this model, made popular by Netflix, versus the pay-per-title approach taken by Amazon Video On Demand or Apple's iTunes. In the early suggestion, viewers would have had both unlimited movie streaming as well as four free DVD rentals each month, effectively giving users free Internet access for the same cost as using ordinary Redbox service once a week.

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