Redbox, whose brick-red DVD vending machines are scattered
across the country, is aiming to have a Netflix-like video streaming
subscription service up and running by the end of 2011, company
executives told investors this week.
The development of the
service has taken longer than expected because it has involved
negotiations with several potential go-to-market partners, according to
Coinstar CEO Paul Davis, speaking at a Feb. 16 analyst day. Coinstar is
Redbox's parent company.
"So we could have moved a lot quicker quite a few months ago had we decided to do this on our own," Davis said, according to a transcript of the presentation.
"But we made a conscious decision as a team to not do it on our own
because the price tag of doing that was prohibitive. We also didn't feel
like we could have an offering working on our own that would
distinguish ourselves and be a real winning proposition."