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It looks like all the speculation is true, Redbox will soon go toe-to-toe with Netflix in the Web-based movie distribution business, the Los Angeles Times reports.
Redbox, which has seen stellar sales from its movie rental kiosks, is in talks with various potential partners for the expansion, including Walmart. Details are still being hammered out, but the end goal is to have the Web-based service work in conjunction with the kiosks.
"The disc business is still very strong and will continue to be for quite some time, but we need to get into this space to take advantage of the gradual transition to digital," said Mitch Lowe, chief executive of Redbox.
Things get a little tricky in the online world, as instead of acquiring discs at standard prices, movie studios can charge distributors high prices for each time a movie is viewed. Combined with shipping costs, $1 rentals probably aren't part of the equation, at least not outright, but Redbox insists it will continue to offer a good value.
"The way we're going to deliver this product is going to match the value consumers associate with our brand," Lowe said.
A subscription plan similar to Netflix is being discussed, though no pricing information or concrete details have yet been revealed.
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