Last month, the people behind everyone’s favorite thing about 7-11 convenience stores announced it would be getting into the online video streaming game with Redbox Instant. This move came as a shock to many (myself included) who thought Redbox didn’t need to do anything other than keep up those wonderful $1.20-a-night DVD kiosks. And in a market already oversaturated by instant streaming services (including Netflix, Hulu Plus, Amazon Prime, Comcast Xfinity, Walmart Vudu and Warner Archive, the new major-studio attempt to screw over consumers), this move seemed especially puzzling for a company that really seemed to have found its niche (and brought down Blockbuster in the process).
Look closer at Redbox’s deal though, and it starts to make a little more sense; for $8 a month, along with unlimited streaming on a variety of devices, you also get four DVD rental credits. Not a bad deal if you like to rent lots of movies.
But therein lies the issue—Redbox Instant has no intention of offering anything aside from movies, which gives Netflix a huge advantage. To illustrate this: Of the 40 “popular titles” on Netflix, only two are feature-length films. It’s clear, then, that on Netflix, a streaming service which already has a rather extensive film library, most people are logging in to watch content in episode-length chunks (or go on the occasional “Breaking Bad” or “Office” binge after midterms are over). Redbox Instant’s pure filmgoer approach certainly injects a nice bit of simplicity into this convoluted market, but one can’t help but feel like the Redbox execs are missing a huge opportunity by ignoring the opportunities of the television market.
What’s more, Redbox Instant also fails (at this point) to even match up to Netflix on pure movie titles alone. According to TechCrunch, Netflix (U.S.) offers around 9,000 feature films, nearly doubling Redbox Instant’s starting catalogue of 4,600. Obviously, Redbox Instant is a newcomer, and its catalogue will grow over time, but it’s difficult to see it offering anything in its current state that Netflix doesn’t already do.
In a business such as this, whoever makes the first move often gains a huge advantage. Netflix adopted instant streaming services when the market was still relatively fresh, and as a result has managed to gain a huge base of loyal consumers. Redbox Instant might be a great approach for those who only want to watch movies, but that seems like a pretty limited consumer base. We’ll see if the service can grow over time, but one can’t help but wonder if it’s too little too late. Redbox, you know I love your kiosks, but I think I’ll be sticking with your older comrade for the time being.
