Tuesday, December 4, 2012

Netflix, Inc. (NASDAQ:NFLX): The Redbox-Verizon Streaming Service Might give Competition in terms of Pricing

Although, Netflix, Inc.(NASDAQ:NFLX)has a huge number of movies and shows, which are not present in abundance in Redbox and Verizon’s streaming video service, the latter might cost users $2 less per month. As per GigaOM’s Janko Roettgers, who studied publicly available support documents, the so-called “Redbox Instant by Verizon comes at $6 a month.

The service includes unlimited video streaming like Netflix, and also provides optional features. Subscribers can avail of four nights of DVD rentals through Redbox kiosks if they pay $2 extra. There is an offer for on-demand rentals of newer movies, starting at $0.99, with offline access to those videos available on some devices. After the service is unveiled, it can be accessed on web browsers, iOS and Android devices, Microsoft’s Xbox 360 and select TVs and Blu-ray players from Samsung. The service is not limited to Verizon subscribers – anyone can sign up.

There are chances that final pricing might differ since the service is in closed beta now, but even then Redbox Instant by Verizon still stands as the cheapest substitute for Netflix till now. If you calculate annually, it is $24 and $9 less expensive than Netflix and Amazon Prime respectively. The pricing is not the only difference. Paul Davis, CEO of Redbox operator Coinstar, told Fast Company some time back that it will have a smaller but better collection of movies than Netflix. They will focus more on movies instead of TV shows.

However, the Redbox-Verizon service might be a tad hesitant to include newer and better content due to cord cutting or cord shaving, unlike Netflix. This is because they would want to hamper Verizon’s existing FiOS TV and on-demand video services. But then again, it is not possible to predict what the service will be like, till it goes up in the 3rd week of December, according to GigaOM.
Share sof the company slumped 7% in Monday’s session.

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