Redbox's Streaming Media Service To Rival Netflix Still In The Works
Redbox, whose brick-red DVD vending machines are scattered across the country, is aiming to have a Netflix-like video streaming subscription service up and running by the end of 2011, company executives told investors this week. The development of the service has taken longer than expected because it has involved negotiations with several potential go-to-market partners, according to Coinstar CEO Paul Davis, speaking at a Feb. 16 analyst day. Coinstar is Redbox's parent company. "So we could have moved a lot quicker quite a few months ago had we decided to do this on our own," Davis said, according to a transcript of the presentation. "But we made a conscious decision as a team to not do it on our own because the price tag of doing that was prohibitive. We also didn't feel like we could have an offering working on our own that would distinguish ourselves and be a real winning proposition." Davis did not disclose which companies Redbox has been approaching about a partnernship. Separately, Amazon.com reportedly is readying a service that would stream 5,000 movies and TV shows members of its $79-per-year Prime free-shipping membership program.
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