Lovers of streaming content from the internet got some good news yesterday. Movie lending giant Redbox made an announcement that they will enter the world of streaming media in 2011.
The streaming media market is growing rapidly with the likes of Netflix and Hulu leading the way. Redbox is owned by the same company that owns and operates the Coinstar machines found at thousands of locations. Redbox and Coinstar CEO Paul Davis Said negotiations with various companies about launching a streaming movie service next year were going well and that they aim to be up and running with the service in 2011. CEO of Redbox, Paul Davis went on to say that they understood the demand the growth of the streaming media world. Paul Davis did go on to say that Redbox will not be getting out of the kiosk business as there is still a long profitable life ahead for their iconic red dispensing kiosks.
Redbox has over 22,000 throughout the United States. They have also recently entered the world of video game rentals from their kiosks. While still in the early test stages it seems to be going well for Redbox. Redbox was founded in 2003 and is operated out of Oakbrook Terrace, IL
In my opinion, the days of physical media such as DVD’s Blu Rays and CD’s are surely coming to an end. While they will not disappear overnight and will still be around for years, Consumers desires for physical media seems to be dwindling. Why have objects in your home that can get broken, scratched or just take up room, when you can just watch the content online? With more and more people having access to high speed internet these days, the transition from physical media to streaming media will be an easy one.
I am sure both Netflix and Hulu will be looking on in great interest as Redbox looks to break into the streaming media segment and take some of their market share. One thing for sure is if Redbox does indeed enter this market, consumers will be spoilt for choice, which can only be good as this market will become very competitive, which will almost certainly mean there will be some pricing wars.
Sources: Engadget.com, Wikipedia.com