Why Did Redbox End Its Streaming Service?


Quick Answer

Redbox ended its streaming service after its joint venture partners decided the service had not lived up to expectations for success. The service ended on October 7, 2014.

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Full Answer

Gigaom states that the streaming service shut down came after Redbox had to reject new sign-ups after a security issue that left the doors open to credit card fraud. The sign-up block was in effect for three months. During that time, Redbox Instant could not gain new customers, and existing customers were sometimes kicked out of the service. A general nervousness about using Redbox Instant after the credit card fraud issue also kept many members from using the service.

The catalog was also an issue. Redbox Instant focused on movies instead of television, setting it apart from competitors such as Netflix, but the catalog was significantly smaller. Credit card issues aside, Redbox Instant never became as popular as the joint venture partners had hoped it would. Redbox and Verizon were both displeased with the number of subscribers.

The advertising for Redbox Instant was poor as well, according to Gigaom. If a user went to Redbox's website to look for a movie, the website would show the title's availability on Blu-Ray or DVD, but would say nothing about its availability on Redbox Instant. Gigaom also states that the only promotional page for Redbox Instant on Redbox's website did not include a link to the service.

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