Red Paint Blog

Redbox wants to start streaming before Santa comes

Jay:

Finally, a story not about the new iPhone. Question: is Netflix and Amazon Prime successful enough to warrant another player in that space?

Originally posted on Gigaom:

The Redbox Instant by Verizon joint venture wants to have its Netflix (s NFLX) competitor up and running in time for the holidays, according to a Bloomberg report. A Verizon (s VZ) exec told the news agency that the service is currently being tested by 500 of its employees, and that there is going to be a short public beta test before it finally launches between late November and mid-December.

The Bloomberg story also revealed a few more interesting details about the joint venture’s business model. Apparently, Redbox and Verizon are going to pay rights holders per subscriber. That’s different from Netflix, which regularly spends many millions of dollars to license titles for a set amount of time.

Paying per subscriber will minimize the the startup costs of the new venture, but it also means that customers likely will have fewer content options. Netflix is now regularly betting big…

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