Amazon a Possible Redbox Streaming Partner

TechCrunch is reporting that Coinstar‘s (CSTR) Redbox, which is is gearing up to challenge Netflix‘s (NFLX) web movie-streaming empire head-on by expanding the popular DVD rental brand to the web with a movie streaming service of its own, could partner with Amazon.com (AMZN) to launch its new venture. At a meeting with analysts, Redbox President Mitch Lowe stated his company’s forthcoming digital option will be subscription-based rather pay-to-play service through which consumers pay separately for each movie.

Is Redbox’s new venture a Netflix killer? Not likely, but the upcoming Redbox media service means the co. will be competing directly with Netflix, which has amassed more than 20 million subscribers (they had projected to add  nearly 4 million subscribers in fiscal 2010, but ended up doubling that figure due to the massive growth in popularity of their instant streaming model) to its DVD-by-mail and Internet streaming subscription plans.

During Thursday’s trading session, NFLX shares have gained 30 cents, or 0.13% to $238.02. CSTR is up $1.95, or 4.50%, to $45.25 and AMZN has added $1.09, or 0.58% to $187.71.

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About Ron Haruni 1036 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

1 Comment on Amazon a Possible Redbox Streaming Partner

  1. This is irresponsible reporting. If history proves correct everytime some negative press comes out about Redbox (like Disney raising rates) Mitch announces a streaming service (2years running now).
    And if you listened to the analyst event they announced nothing other then we are in talks. Well of course they are because they have been plugging this for 2 years now and are no closer today then two years ago. The fact reamins Amazon would not need Redbox for a streaming service and it’s rediculous to believe that any studio would be willing to give redbox any content for a streaming service.

    This whole story is fluff!!!!

    Read more internet tv news: Redbox Goes Digital In Netflix Pursuit http://www.worldtvpc.com/blog/redbox-digital-netflix-persuit/#ixzz1EEivzMaz

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