Is Redbox going into streaming video business?

Looks like Redbox, the buck-a-night DVD kiosk company, might not be content with just kiosks anymore. Word has it that Redbox is circulating a survey to gauge interest in monthly streaming video subscriptions, similar to Netflix's popular "Watch Instantly" service — except in Redbox's case, the service would cost half as much as Netflix's cheapest streaming option.

According to High-Def Digest, the Redbox survey describes a plan that would cost $3.95 a month (Netflix's cheapest subscription plan costs $8 a month) and deliver unlimited video streaming, as well as four free DVD rentals from Redbox kiosks. Given that Redbox kiosk rentals cost a buck a night, customers who rent at least four Redbox DVDs a month would essentially be getting free video streaming in the bargain, High-Def Digest notes.


Interesting, right? And cheap. Then again, what kind of selection would we be talking about here? Merriman Curhan Ford analyst Eric Wold tells Home Media Magazine that it's "unclear" what kind of streaming movie selection Redbox would have in mind ... assuming it goes ahead and launches a streaming video option, that is.

Would it consist mainly of older, catalog titles? Would there be a decent mix of new releases? Hard to say, but Wold tells Home Media he thinks Redbox would "likely lean more toward catalog titles that are cheaper to provide to customers."

And then there's another issue: Would a streaming service be available only on the Web, or on other devices (like game consoles, Blu-ray players, and smartphones)? Again, hard to say, but Wold speculates in Home Media that Redbox might partner with — or even acquire outright — Sonic Solutions, the company behind Roxio CinemaNow, which powers Blockbuster's online movies and streams videos to certain LG Blu-ray players.
Of course, there's no telling if Redbox will actually make the streaming video jump — after all, a survey is just a survey. But it seems clear that execs at Redbox owner Coinstar are at least contemplating an idea that Netflix CEO Reed Hastings often calls the future of video rentals.

So, what do you think? Would you sign up for streaming videos from Redbox for $4 a month?