Redbox has taken a chunk out of the brick and mortar rental stores. Now it’s looking to stake its claim in the world of streaming content.
According to the Hollywood Reporter, the movie rental company is in conversations to start up its own streaming video service that would be similar to Netflix’s service.
Redbox president Mitch Lowe told analysts Thursday that the kiosk DVD rental company’s new digital option will be subscription-based Internet streaming, which means the company will compete directly with Netflix, the Los Angeles Times reports.
A monthly fee will give consumers access movies to on multiple devices as well as discs through kiosks.
Netflix has more than 20 million subscribers to its DVD-by-mail and Internet streaming subscription plans.
The news comes the same day a report surfaced that Disney has raised wholesale prices on DVDs it sells to both Redbox and Netflix.
OK. Netflix works, is a known streaming entity, and has lots of high-level contracts. Redbox will have to come up with something extremely competitive, we’re talking price and extreme bandwidth here, in order to even think of taking a bite out of Netflix’s pie.