Redbox Thinks Outside the Box, Plans Streaming Video Service

Redbox, the DVD rental kiosk company, says it's preparing to challenge Netflix in the streaming video arena. Redbox subscribers will pay a single monthly fee to get access to movies, both as streaming video and on DVDs through kiosks.

Netflix took the early lead in the online streaming business and now has more than 20 million subscribers who get DVDs by mail and movies and TV shows via streaming Internet video.

Amazon.com also offers movies and TV shows but charges a per-show price, although there are reports that Amazon will soon off streaming video through a partnership with a so-far undisclosed company, possibly Redbox.

Consumers are steadily shifting away from pay-per-view videos in favor of subscription plans, just as they previously began shifting away from DVDs when Internet streaming became reliable and inexpensive.

The biggest problem all of the new competitors have is getting their hands on the product. Movie studios and the television networks and syndicators are reluctant to let new releases go to streaming video before they're confident they've milked DVD sales for all they're worth.