Do you remember back in 2013 when Redbox (the movie rental company) tried to create a video streaming service? Do you also remember how badly that attempt failed? Well, Redbox is at it again.
This time around, the company claims that the streaming offer that may be offered in the U.S. soon will be different - will it?
It’s somewhat amazing that Redbox still exists. Yet, the company thrives because some people don’t like the idea of subscribing to a streaming service or signing up at a rental store (yes, some still exist). Redbox gives people the option to rent a movie with really no strings attached, and that’s exactly what the company thrives on. So in some ways, it makes sense that a Redbox streaming service didn’t and might not work.
This time around, Redbox will offer a different kind of streaming service, though. Instead of setting up a streaming service like Netflix, for example, the company plans to offer movie rentals on the spot. Customers would be able to rent a movie directly from a TV or computer, and payments would be on a per-rental basis only.
This is in stark contrast to regular movie streaming options that do not provide the chance for users to rent just one movie at a time. While some other companies do offer an a la carte streaming service, Redbox execs believe that the company has a leg up on its competitors.
Will It Work?
There has to be some logic in trying something once and failing and then trying it all again in a different manner. I’m going to assume that the company has learned its lesson the last time around, and this time will set up a streaming service option that does work for everyone that may use a Redbox option.
This time around, Redbox might actually be able to snag a piece of the streaming video pie. On the flip side, that market is already fairly crowded. Redbox is entering into territory currently occupied by Amazon and Netflix, and that’s some fairly stiff competition. It is possible that Redbox might have a unique audience, but that remains to be seen.
Redbox is surviving in the video rental sphere currently, but the company’s annual revenues have been sliding. Annual revenue has declined nearly 32%, and that means that users might actually be getting sick of Redbox or may not be into renting from the red box as much as they used to be. As far as timing goes, Redbox’s timing couldn’t be better, but hopefully the new streaming options are enough.
If the new streaming setup for Redbox doesn’t work this time around, the company might be headed into a deep revenue decline. Trying to get into the streaming space with Amazon and Netflix is hard to do, but Redbox does already have a market. Then again, were Redbox to fold, I’m not entirely sure that the world would miss it. Some companies hang on by a thread and this is one of them.