The obvious success of Netflix has created a lot of buzz around the potential for video streaming subscription services. In an effort to capitalize on this growing market, Verizon and Coinstar recently began testing their own service called Redbox Instant by Verizon.
In addition to on-demand streaming, Redbox Instant by Verizon will allow subscribers to download movies, TV shows and videos, as well as rent videos for $1 from one of their more than 36,000 kiosks located around the United States. The new subscription service will be aimed at the next-generation mobile consumer, letting individuals watch their favorite videos on their device of choice.
Since the service is still in alpha testing mode, the launch date remains tentative. However, executives believe it will be available for subscription sometime in the second half of 2012.
By leveraging a subscription management platform, emerging video streaming companies like Netflix and Redbox can manage customer programs more efficiently. As a result, these subscription commerce businesses can gain a competitive advantage over rival firms while simultaneously generating recurring revenue.