Netflix (NASDAQ:NFLX) and Amazon Prime (NASDAQ:AMZN) have new competition in the form of Redbox Digital now.
Rather than using its traditional method of offering movie rentals in kiosks, the company is now offering an online streaming service that will start off small, and grow steadily.
“We are testing a potential new transactional digital VOD and EST offering, with a small subset of our customers, designed to complement our core kiosk rental business,” a Redbox spokesperson said.
The move will help to determine whether or not customers will pay a little extra for digital offerings from the comfort of your home. Redbox kiosks currently charge $1.50 per rental.
The digital library will be considerably larger than your average kiosk, which can only handle a few hundred films.
The company tried its hand in the streaming market three years ago as part of a partnership with Verizon (NYSE:VZ), but it shut down after a year and a half.
Redbox first launched in 2002, helping to facilitate the movie rental process at a time when companies like Blockbuster were still around.
New Blu-Ray and DVD films in the kiosks include My Big Fat Greek Wedding 2, The Perfect Match and Bling.
Meanwhile, Netflix recently announced that the company has acquired exclusive rights to the new Star Trek series, produced by CBS.
NFLX stock slipped 0.1% Friday. AMZN shares rose 0.1%.
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