Redbox to Go Streaming Next Year

Redbox, which has operated DVD rental kiosks at convenient shopping centers across the country, has announced that the company will be entering the movie streaming business in 2011. Redbox didn’t name a partner yet to host and manage its streaming business, and the company is uncertain whether it would adopt a subscription plan, like Netflix which offers unlimited streaming for a fixed monthly price, or an a la carte model similar to iTunes and Blockbuster. Speculation of the company entering the streaming arena spurred in April when a survey from the company asked consumers their thoughts for a $3.95 monthly plan that would include unlimited streaming in addition to four free DVD rentals; right now, four DVD rentals would cost $4 alone.

Some potential partners for Redbox’s streaming service include Sonic Solutions, which helps to host Blockbuster and Best Buy’s streaming efforts, Amazon, which has its own Amazon on Demand a la carte streaming service, and WalMart, which owns Vudu. If Redbox can manage to pull off a $4-$6 per month DVD streaming plan with a finite number of rentals, it could gain competitive advantage over market incumbent Netflix, which is exploring a streaming-only subscription plan for the U.S. market.