The Demise of Redbox Instant: A Failure to Deliver on Promises

Redbox rentals, once touted as a revolutionary way to rent movies and TV shows, has ultimately failed to deliver on its promises. The joint venture between Outerwall and Verizon, known as Redbox Instant by Verizon, is shutting down after barely 20 months. This decision comes as no surprise, given the service's lack of progress in attracting consumers.

One of the major issues with Redbox Instant was its inability to create a robust and deep streaming catalog. Despite investing up to $450 million, the service failed to deliver on this promise. The idea behind the joint venture was that the kiosk approach would complement the streaming side, but unfortunately, neither component lived up to expectations.

The decline of DVD rentals was already underway when Redbox Instant launched, and by 2013, kiosk rentals were also in decline. The company's reliance on physical media made it difficult for them to compete with Netflix, which had separated its streaming video plan from DVD rentals over a year earlier.

As a longtime subscriber to the service, I have often wondered why I continue to pay $9.79 a month (including four Blu-ray disc rentals a month). In hindsight, I should have bailed months ago. The service failed to attract consumers in any quantity, and its poor performance is likely due to its inability to deliver on its promises.

In conclusion, the demise of Redbox Instant serves as a cautionary tale for companies looking to enter the streaming market. Failing to invest in a strong content catalog and relying too heavily on physical media can lead to failure. As the market continues to evolve, it will be interesting to see how other companies adapt and learn from Redbox's mistakes.