You've probably heard of Redbox Instant, the video streaming service from DVD-rental chain Redbox and Verizon right? No? Well, you're not alone. Apparently, not a lot of people heard of it too or were interested in getting the service, hence the announcement that it will be shutting down for good by October 7, just barely a year and a half old.
Redbox Instant was created in partnership with carrier Verizon and tried to offer cheaper streaming services combined with DVD rentals (who knew people still rented actual DVDs???). But it looks like this business model was a spectacular failure, as the official statement was honest enough to admit that the service was not as successful as they initially hoped it would be. They will be offering possible refunds to subscribers after the official closure on October 7.
This comes as no surprise to those who were aware that for the past three months, Redbox Instant hasn't been able to accept new customer sign-ups, although that was for a different reason at the time. There were some issues with credit card fraud, not a good sign for a business that relies on credit card payments right? The $6-$8 a month fee gave subscribers access to around 4,500 movies, which is not a lot as compared to competitors like Netflix with its unlimited access to a huge library of videos or Hulu with its TV shows streaming service.
Subscribers will only be able to access the streaming service and use their coupons at the DVD-rental kiosks only until 11:59PM Pacific time on October 7. More announcements will be made regarding the refund and other details by October 10 on the official Redbox Instant site.
VIA: SlashGear