Boston, MA 10/06/2014 (wallstreetpr) – Verizon Communications Inc. (NYSE:VZ) and Outerwall Inc (NASDAQ:OUTR) together operates a streaming video service Redbox Instant. Verizon already had a substantial presence in network operation and entered into the video streaming services through this alliance.
The venture integrates Verizon’s streaming video services with Redbox DVD rental kiosk business to compete with the leading online video company Netflix, Inc. (NASDAQ:NFLX). However, the venture was unsuccessful in attracting the customers in video streaming services that lead to shutting down the operation of Redbox Instant and Verizon.
Redbox Instant
As of now, Redbox is offering its rental services in 35,900 locations across the U.S. and 100 locations in Canada. Verizon Communications Inc. (NYSE:VZ) offers the rental services including new releases on video games and movies to its customer’s at their convenience as well as at an affordable price. Redbox rents video games and movies through its kiosk and provides an easy access to more than 68% of the U.S. population.
Failed to impress
Redbox partnered with Verizon Communications Inc. (NYSE:VZ) to offer streaming services to its existing, as well as new customers. In 2013, Verizon launched Redbox Instant (streaming service) to compete with the video streaming operators such as Netflix, Hulu Plus and Amazon.com, Inc. (NASDAQ:AMZN).
In addition, Verizon Communications Inc. (NYSE:VZ) offered video streaming to its subscribers as Web video services through FiOS TV. It participates in the competition with leading cable operators like Time Warner Cable Inc (NYSE:TWC) and Comcast Corporation (NASDAQ:CMCSA).
Redbox failed to create an image over consumers compared to its competitors in video streaming services. Therefore, both the companies decided to shut down the operation of Redbox.
According to a joint statement, the service was not successful and hence, Redbox will shut down its operation from October 7, 2014. The statement also said that the subscribers will receive an email on the termination of Redbox’ video streaming services. It will also provide the details on their refunds.
