The movie streaming space is about to become a little bit more crowded. Redbox has announced plans to officially launch its new movie streaming and video rental service before the end of the year.
Redbox Instant by Verizon will go live at a cost of $8 per month. The service will include unlimited video streaming alongside four Redbox physical DVD rentals per month. In comparison a similar Netflix plan runs $16 when streaming and DVD rentals are included.
Redbox will also include a $9 option which allows for Blu-ray rentals in place of DVDs.
Unlike competitors Netflix and Amazon Instant Video this new offer focuses squarely on movie streaming and includes 5,500 titles.
Redbox is coming out the gate with a strong showing that includes movies from Warner Bros. and movie channel Epix, along with other offerings that will be revealed soon.
The new service will first launch on the web and through several carefully selected Blu-Ray and Smart TV options. As the service grows Redbox will likely reach out to video game console providers, tablet manufacturers and smartphone makers in order to fully compete in the growing video streaming marketplace.
According to Shawn Strickland, the chief executive of the joint venture, the company has chosen to focus on new movies because market research has found that movie streaming customers are most interested in popular recent Hollywood films that people are still talking about.
Redbox Instant by Verizon is expected to launch on December 17 and will be offered as an invite-only program as Redbox attempts to beta test the platform ahead of a full release in 2013.
While Redbox will offer customers yet another option in a crowding market it could also mean higher cost of content acquisition. As more company’s fight for publishing rights to various movies and TV shows studios are provided with the opportunity to sell content to the highest bidder.