Netflix’ ‘Watch Instantly’ has been a phenomenal success, and is likely to get even more popular and successful as we all move to a digital future.
But could Netflix about to gain some competition in the form of Redbox, with the kiosk rental company preparing to launch its own rival streaming video service?
A Digital Future
All signs point towards the fact we’re heading for a digital future. Physical media is slowly but surely falling out of favor, with music, movies, television, and games now available as downloads or via streaming.
If one product sums up this shift, it’s the recently-released Apple iPad. This tablet device, the first of many similar products due to launch over the next year or so, will prove its worth only via the content available for it. All delivered digitally via iTunes and third-party apps.
A few companies are taking advantage of this shift in consumer habits. One of which is Netflix.
Netflix ‘Watch Instantly’
Netflix started as a by-mail video company. And its core business is still delivering DVDs and Blu-ray discs in this way. But anyone who subscribes also gets access to the full library of content on Netflix’ ‘Watch Instantly’ streaming service. Which currently stands at around 17,000 titles.
‘Watch Instantly’ is available on an ever-increasing number of consumer electronics, including the PS3, Xbox 360, Wii, Roku, TiVo, and the aforementioned iPad. The latter of which it beat Hulu and other similar streaming video services to the punch.
But Netflix could soon have a competitor in this space, in the form of Redbox.
Redbox Streaming
is a company which offers cheap DVD rentals via kiosks around the United States. And this strategy has proved pretty successful so far. But after eating into Blockbuster’s market share, it now looks to be turning its attention to Netflix.
According to High-Def Digest, Redbox recently sent out a survey to customers asking how interested they’d be in a streaming video service. A price of just $3,95 is quoted, which would buy customers four kiosk rentals and unlimited streaming. Which, with kiosk rentals costing $1 each, would see the streaming service effectively being free. And it would also undercut the price of a Netflix subscription ($8) by 100 percent.
Conclusions
A survey obviously doesn’t mean such a move is guaranteed, but gaging opinion in this way surely suggests it’s a real possibility.
Netflix has a huge head start in this sector, but with the low price, Redbox could soon build a customer base. If the company could also secure content then an interesting battle could be set to emerge.
