Verizon launched their Redbox Instant video streaming service back in March of last year, the company was looking to take on other streaming services like Netflix. The service aimed to combine the convenience of online streaming with the physical rental options available at Redbox kiosks, offering a unique hybrid model that was intended to attract a wide range of customers.
However, despite these ambitions, Verizon has announced that Redbox Instant will be closing down from tomorrow, the 7th of October, and they will be refunding their customers. You can see a statement from Verizon below.
Thank you for being a part of Redbox Instant by Verizon. Please be aware that the service will be shut down on Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time.
Information on applicable refunds will be emailed to current customers and posted here on October 10.
In the meantime, you may continue to stream movies and use your Redbox kiosk credits until Tuesday, October 7 at 11:59 p.m. Pacific Time.
We apologize for any inconvenience and we thank you for the opportunity to entertain you.
Sincerely,
The Redbox Instant by Verizon Team
Challenges Faced by Redbox Instant
Redbox Instant faced several challenges that contributed to its closure. One of the primary issues was the intense competition from established streaming giants like Netflix, Hulu, and Amazon Prime Video. These services had already built substantial user bases and offered extensive libraries of content, making it difficult for Redbox Instant to carve out a significant market share.
Additionally, Redbox Instant struggled with content licensing. While Netflix and Amazon were investing heavily in acquiring exclusive content and producing original series, Redbox Instant’s library was relatively limited. This made it less appealing to consumers who were looking for a wide variety of viewing options.
Technical issues also plagued the service. Users reported frequent buffering and streaming interruptions, which detracted from the overall user experience. In an era where seamless streaming was becoming the norm, these technical difficulties were a significant drawback.
Customer Refunds and Future Plans
Verizon has assured customers that they will be refunded for any unused portion of their subscriptions. The company has stated that information on applicable refunds will be emailed to current customers and posted on their website on October 10. This move is aimed at ensuring that customers are not left out of pocket due to the sudden shutdown of the service.
In the meantime, customers can continue to stream movies and use their Redbox kiosk credits until the service officially shuts down on October 7 at 11:59 p.m. Pacific Time. This allows users to make the most of their remaining subscription period and kiosk credits.
While the closure of Redbox Instant is undoubtedly disappointing for its users, it also serves as a reminder of the challenges faced by new entrants in the highly competitive streaming market. The landscape is dominated by a few major players, and breaking into this market requires not only substantial financial investment but also a compelling value proposition that differentiates the service from its competitors.
If you think you may be due a refund on your Redbox Instant service, you can find out more information over at Redbox at the link below.
Source Redbox Instant
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