Redbox Poses New Challenge to Netflix’s Supremacy
Netflix (NASDAQ:NFLX) exploded when it came onto the movie-rental scene, especially with the addition of its streaming service, and gave a beating to many traditional rental stores, like Blockbuster. But now, another non-traditional competitor, Redbox, is edging in on the movie streaming market with a Netflix-esque service that combines both video and Blu-ray streaming and mail delivery services, all for a fraction of Netflix’s price.
Redbox — a subsidiary of Coinstar (NASDAQ:CSTR) — has arranged to offer streaming of around 5,500 titles from Warner Bros. (NYSE:TWX) and Epix on its new Redbox Instant platform. Redbox has typically focused on mainstream, popular films and may continue on this path with its currently limited movie selection. For comparison, Netflix still outguns Redbox by more than 50,000 titles for streaming, and offers over 100,000 DVDs for delivery.
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Netflix also recently signed an exclusive streaming deal with Disney, giving it a powerful tool in the streaming market and boosting share prices nearly 15 percent last week. While Netflix still stands as the powerhouse in the streaming market, Redbox may become a solid contender in the future. Amazon (NASDAQ:AMZN) is also fighting its way into the market with a streaming service via Amazon Prime.