With no new customers, and an ever-declining base of existing customers, the writing was on the wall.
Verizon and Redbox are pulling the plug on their joint streaming movie service, Redbox instant. Users of the $6 a month service received an email Saturday informing them about the imminent shut down, PC Mag reports. The Redbox instant website has also been updated with an “Important Service Shutdown Notice.”
“Thank you for being a part of Redbox Instant by Verizon,” the notice reads, “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.”
Redbox instant has been in trouble for awhile now, and rumors even swirled on Reddit that the site would fold on October 1. As Gigaom reports, because of a credit card fraud issue, the service as been unable to sign up new users for the past three months. Apparently, criminals were using Redbox instant to confirm credit card numbers which they had illegally obtained elsewhere. But to make matters worse, Redbox instant has also been preventing existing customers from updating their payment information. If a user’s credit card expired, he or she was simply kicked off the service.
With no new customers, and an ever-declining base of existing customers, the writing simply may have been on the wall for a service that was never able to differentiate itself from competitors like Netflix and Amazon Prime.
But Redbox instant will live on in some form at least. It already provides the infrastructure for Verizon’s On-Demand store, and it may power a streaming TV and movie subscription service that Verizon plans to offer in the future.
Leave a Reply