Redbox Instant Sets Price at $8 Month

by Christopher Freeburn | December 12, 2012 1:10 pm

redbox instant Redbox Instant Sets Price at $8 Month[1]A new video streaming service from DVD rental kiosk maker Redbox will be priced to compete directly[2] with Netflix (NASDAQ:NFLX[3]).

Redbox Instant by Verizon, a partnership between Verizon (NYSE:VZ[4]) and Redbox parent company Coinstar (NASDAQ:CSTR[5]) will beging beta-testing this month. The service will be priced at $8 a month, matching Netflix’s monthly streaming-only option, Forbes notes.

Shares of Coinstar surged more than 4% in Wednesday trading, while Verizon rose about 1%. Netflix shares soared about 7% despite the Redbox news.

The service will feature unlimited streaming of titles in the Redbox library. Redbox has acquired streaming rights to content from Viacom‘s (NASDAQ:VIAB[6]) Paramount Pictures, Comcast’s (NASDAQ:CMCSA[7]) NBCUniversal, Lionsgate (NYSE:LGF[8]), Sony Home Entertainment (NYSE:SNE[9]), Time Warner‘s (NYSE:TWX[10]) Warner Brothers and the EPIX TV channel.

Available through a web-based platform, the service will also issue apps for mobile devices running Apple‘s (NASDAQ:AAPL[11]) iOS and Google‘s (NASDAQ:GOOG[12]) Android operating systems.

Subscribers will also receive four kiosk DVD rental credits per month. For $1 more a month, Redbox Instant subscribers will be able to use those credits to rent Blu-Ray disks.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/11/redbox-instant.jpg
  2. priced to compete directly: http://www.forbes.com/sites/ericsavitz/2012/12/12/coinstarverizon-venture-to-price-streaming-service-at-8month/
  3. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  4. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  5. CSTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSTR
  6. VIAB: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIAB
  7. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA
  8. LGF: http://studio-5.financialcontent.com/investplace/quote?Symbol=LGF
  9. SNE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNE
  10. TWX: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWX
  11. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  12. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG

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