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Redbox Instant shutting down tomorrow, refunds being issued to beleaguered customers
Can’t say we didn’t see this coming. Redbox has announced that their instant streaming service, one they made in conjunction with Verizon, will be shutting down beginning tomorrow, October 7th, at 11:59pm Pacific. The reason? They have no problem telling you that it just hasn’t worked out:
The service is shutting down because it was not as successful as we hoped it would be. We apologize for any inconvenience and we thank you for giving us the opportunity to entertain you.
The service is one of many that have attempted to step up and challenge Netflix to a game that they have mastered at this point. Redbox’s issue was like many others’ — there simply wasn’t enough content. Asking folks to pay $9.99 per month for a significantly smaller library of movies with minimal additions each month simply doesn’t appeal.
Yours truly gave the service a pretty good spin for its first few months of existence, but Netflix’s vast array of content — bolstered mostly by the company’s critically acclaimed original series — ultimately won out.
Netflix had some growing pains of their own when they first launched too, but they had the distinct advantage of offering you unlimited DVD and Blu-Ray rentals (well, as many as you could get shipped to you and get shipped back within a month’s time, anyway) to go along with the streaming video side for one low monthly price.
Redbox attempted to offer similar value by giving you rental credits for movies at physical kiosks, but the credits were only good for about 2 to 3 movies at most. They also offered something Netflix still hasn’t — streaming rentals and digital movie purchases “But why rent or buy a streaming movie if you have the monthly service,” you ask?
Well, a pay-per-rental or pay-to-own streaming model still holds value considering you tend to get more recent movies faster. The all-you-can-eat stuff is subject to strict licensing deals that take a great deal of work to establish and maintain. Even with that, Redbox wasn’t able to put together a streaming rental and purchasing library as compelling as the likes of Amazon and VUDU.
So what happens for folks still hanging in there? For those on monthly subscriptions, Redbox says you’ll receive a refund for one month of service if you haven’t received a full month of service since September 8th. The refund is automatic and should be appearing on your bank or credit card statements as early as this Thursday and no later than October 24th.
Additionally, any Redbox Kiosk credits that have gone unused must be used by the aforementioned October 7th at 11:59pm cut-off date, so be sure to zoom over to your local Redbox to rent a couple movies if you have any left. Finally, folks who purchased a streaming rental and weren’t able to watch that rental before tomorrow’s cut-off will be fully refunded for it.
For those who’ve purchased digital movies, Redbox says they’re still exploring options for you to maintain access to the content you’ve purchased after the service has shut down. Redbox says to expect an email with more details in about two weeks’ time so sit tight and wait for them to deliver the goods.
It’s been a decent ride, but ultimately they just couldn’t keep up. Good on them to continue to focus on what they know how to do best. Be sure to check out the full FAQ at the company’s website regarding the shutdown using the source link straight ahead.
[via Redbox]
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