Redbox Needs a Streaming Service

Redbox, the provider of DVD rentals from kiosk locations, needs a streaming service to complement what it already provides, much as Netflix has shifted much viewing to its online channel rather than its "DVD by mail" channel.

About the only questions are how Redbox will do that, when it will do so, and how much the additional online delivery will cost.

A BusinessWeek report hints that Apple could be that partner. The story notes that Redbox added 1.8 million Internet users in the second quarter, including an iPhone application that lets customers reserve DVDs at kiosks, Redbox, owned by Coinstar, also offers an iTunes coupon through its coin-counting machines.

The company says it needs a partner to deliver movies to homes and portable devices to compete with Netflix Inc.’s online service. Netflix streams more than 20,000 titles as part of its subscription service. So far, Redbox seems to be downplaying the likelihood Sonic Solutions Inc., supplier of online movies services to Sears Holdings Corp. and Best Buy Co. would be the Redbox partner.

“We are exploring multiple opportunities,” Paul Davis, Redbox CEO, said. But some details might not be far away. The firm probably will provide some details at its next quarterly earnings call.

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