Redbox

Verizon and Redbox create new partnership to rival Netflix

Today Verizon and Coinstar’s Redbox service have announced their joint venture combining streaming content with physical media rentals.

This new venture will launch the second half of 2012. Though you don’t have to be on Verizon to use this product, this combined service will be marketed to Verizon’s 109 million wireless and 9 million broadband customers as well as Redbox’s 30 million rental customers. 

That’s what makes this partnership so powerful.

Blockbuster on the verge of defeat in battle against Netflix, technology

Once-dominant video rental chain Blockbuster is trying its hardest to
prove that it can compete in the 21st century. It is closing down
stores, and has been bulking up its on-demand offering.

But it looks like it may be too little, too late. Last Thursday, the New
York Stock Exchange announced that the company would be delisted from
the exchange after the company failed to win shareholder approval for a measure that would boost the company’s stock price above $1, the
exchange’s minimum. More often than not, a company’s delisting is signal of impending demise.

Will Netflix throw its customers under the bus for higher profits?

Imagine for a moment that you’re the CEO of Netflix. The movie studios don’t really like you. They think low-cost rental services like Netflix are cutting into DVD sales, which have declined. So they come up with a plan to block rentals of new releases for a short time, perhaps a month.

The question: do you oppose this plan or do you look to negotiate with the studios for some sort of benefit?

Warner Bros. keeps Netflix at arms length, at its own risk

Film studios are working pretty hard to make sure that new online rental services don’t steal all their profits. But outside of movie theaters, they aren’t entirely in control of the distribution of their content. And if the studios aren’t careful, in the process of negotiating revenue deals, they might further choke off their own revenue streams.

This week, Warner Bros., Universal Pictures and 20th Century Fox announced they would withhold new releases from RedBox for 28 days or more after videos go on sale. In addition to delayed access to the video kiosk service, Warner is now seeking new deals with Netflix and will impose the same restrictions on the online rental site unless they give the studio “a day-and-date revenue-sharing option.”

Warner is trying to tap into Netflix’s increasing revenue potential. If Netflix gives in to Warner’s demands, other studios will follow suit. And if the studios are too greedy in their demands, they might lose out on even more money.