Redbox, the DVD rental service with kiosks outside of stores all over the country, is shutting down its streaming service October 7th. According to Yahoo News earlier today, Verizon Communications stated that due to poor sales figures, they would no longer offer digital streaming of movies.
In its effort to compete with other sites such as Netflix, Hulu, and Amazon Prime, Outerwall Inc. (OUTR), owner of the Redbox franchise, partnered with Verizon Communications to offer the movies available in their trademark red kiosks over the net waves. The service was initially offered last year but, with consistently few subscriptions, brought in very little revenue.
Subscribers are expected to receive official notifications via email. A second email will be sent October 10th pertaining to refund options.
The streaming service is only available through Verizon’s FiOS TV, directly competing with the likes of Comcast and Time Warner.
Outerwall is also the creator of Coinstar kiosks. It offers over 60,00 Coinstar and Redbox kiosks across the U.S. and around the globe.
Did you even know Redbox had this service available? As always let us know, in the comments below.