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RedBox, Verizon Joint Venture Launch 'Very Close'
Pricing Will Likely Aim to Undercut Netflix
by Karl Bode 11:59AM Tuesday Oct 23 2012
As their cable deal, planned streaming deal with Redbox and and Home Fusion fixed home wireless service makes clear, Verizon has lofty nationwide branding ambitions that are just starting to take shape. A large part of that effort is Verizon's streaming video joint venture with Red Box, which the companies now say is very close to launch. Speaking on the company's recent earnings call, Verizon CFO Fran Shammo stated the joint venture is very close to launch, though there's still no pricing, plan, or catalog details available. Analysts predict the companies will try to undercut Netflix on price at launch, offering a DVD and streaming rental plan for $8-$10. That should undercut Netflix prices that soared this year as the company separated its streaming and physical DVD rental plans.

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IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7

Beta on a Samsung Smart TV

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elefante72

join:2010-12-03
East Amherst, NY

Re: Beta on a Samsung Smart TV

I hope they allow this on Xbox360. I use cablecard/W7MC so I don't have any STB. We use redbox already, so if the catalog can be complimentary to Netflix I would go for it. Netflix movies on streaming have pretty much come to an end.

What would be amazing is to stream the catalog of redbox to the device, so I don't have to wait in line at a kiosk. And yes I know that Redbox makes $$ on people not returning the next day, but I would pay double not to get out of my couch . If it goes to $3-$4 it's a me too service and Amazon/Vudu fites the bill. I have found that Amazon regular def movies are better than DVD and the fam is happy.

Of course that pretty much means I don't need anything but broadcast, but that is for another day.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Beta on a Samsung Smart TV

I am curious how it is Redbox is going to get the streaming rights that Netflix is unable to get and how they are going to get it for a better price than what Netflix can to have a cheaper service.

Redbox is able to provide recent movies now because of either agreements to get the DVD's wholesale or they go retail when dealing with a difficult company and there is no restriction on renting them. That does not give them streaming rights to the movies. Netflix has more customers than Verizon so you would think they could get better movies at a better price.

Anything different tells me that there are some closed door deals going on that trying to disrupt Netflix and bring prices up.
zippoboy7

join:2006-06-18
USA

Re: Beta on a Samsung Smart TV

What you failed to realize is Verizon is not just an ISP, they have connections to the major TV networks through their FiOS TV product. It would not surprise me if they are not using those contacts to assist with this. What I am waiting to see is if Verizon will use this on there FiOS platform to replace there VoD service since it currently is next to impossible to find anything on it.

cableties
Premium
join:2005-01-27

Re: Beta on a Samsung Smart TV

Actually, Skippy25 makes a point: Verizon isn't a content creator. More like a distributor.
It's the studios that call the shots.
Netflix having its own productions is the beginning just like HBO was...

Not all studios allow their content on competition without licensing and royalties....
--
Splat
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: Beta on a Samsung Smart TV

and the studios fear streaming and new technologies in general. Streaming has a lower value point than media sales and cable channel licensing. Streaming also gives the consumer something that strikes absolute fear into content owners... More control over when where and on what device the media is consumed on.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Verizon's clout with the content providers will make their road easier to hoe then Netflix's.

Personally, I hope Netflix does well, because if they die, we all know where streaming video will be going....

(Think up. Way, WAY up.)
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
millerja01a

join:2005-10-03
Durham, NC

Re: Beta on a Samsung Smart TV

torrents....

WHT

join:2010-03-26
Rosston, TX
kudos:5

Overages ! Ca ching

At $10 per 1 GB, I can see that working very well for Verizon investors.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
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1 recommendation

Re: Overages ! Ca ching

said by WHT:

At $10 per 1 GB, I can see that working very well for Verizon investors.

Nope. Redbox Home Fusion streams will be off-net, toll-free, overage-exempt bulk-rate, forward-cached, etc.

Contrary to the drivel we read here daily, Verizon does not want overage charges; they want you to pay a hefty premium for their basic service and add-ons, but nothing punitive. That's bad for business.

WHT

join:2010-03-26
Rosston, TX
kudos:5

Re: Overages ! Ca ching

Ahhh....the same excuse cable used to get around the Net Neutrality restriction.

Guess no one learned anything from the FCC slapping down Madison River.
silbaco
Premium
join:2009-08-03
USA
I think they just want money and don't really care how they get it. And despite what a lot of people say about massive profits, their profit margin is really not that impressive.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
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Re: Overages ! Ca ching

said by silbaco:

I think they just want money and don't really care how they get it. And despite what a lot of people say about massive profits, their profit margin is really not that impressive.

They want the extra add-on revenue from Redbox.
Not overage charges.

As for margins, if they were "massive", or enjoyed "record profits", as the envious bankrupt socialist media likes to refer to, then another "greedy" firm would enter the market in pursuit of those dollars. We've seen how well Sprint and TMobile have fared.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Overages ! Ca ching

Ever heard of barriers to entry?

The biggest problem with the Laissez-faire market theory is that it always assumes that at any time anyone can enter business and increase the supply of choices and competition. Since that isn't true, the rest of it also fails.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
elray

join:2000-12-16
Santa Monica, CA
Reviews:
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Re: Overages ! Ca ching

said by KrK:

Ever heard of barriers to entry?

The biggest problem with the Laissez-faire market theory is that it always assumes that at any time anyone can enter business and increase the supply of choices and competition. Since that isn't true, the rest of it also fails.

Sprint-Nextel-Clear, TMobile, MetroPCS, Leap, Cricket, and to some extent, America Movil prove that those "barriers" are surmountable.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Overages ! Ca ching

Actually, they are proving that the barriers aren't surmountable.

Thus why so many MVNO's.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
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Re: Overages ! Ca ching

said by KrK:

Actually, they are proving that the barriers aren't surmountable.

Thus why so many MVNO's.

The existence of MVNO's only further prove that the barriers are surmountable.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Overages ! Ca ching

Circular argument is circular.
Skippy25

join:2000-09-13
Hazelwood, MO
Off-net - You mean in an intertube that violates net neutrality rules?

How are you and they going to try to skirt this one?

Are they going to attach all redbox's to their "local" intranet and call it local traffic?

Are they going to deliver it on the same "channel" as cable TV or PPV and say it isnt internet traffic?

bobjohnson
Premium
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Orlando, FL
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Re: Overages ! Ca ching

said by Skippy25:

Off-net - You mean in an intertube that violates net neutrality rules?

How are you and they going to try to skirt this one?

Are they going to attach all redbox's to their "local" intranet and call it local traffic?

Are they going to deliver it on the same "channel" as cable TV or PPV and say it isnt internet traffic?

Just like the other companies with iptv and VoIP, that have internet caps. (ex. Uverse)
--

elray

join:2000-12-16
Santa Monica, CA
Reviews:
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said by Skippy25:

Off-net - You mean in an intertube that violates net neutrality rules?

How are you and they going to try to skirt this one?

Are they going to attach all redbox's to their "local" intranet and call it local traffic?

Are they going to deliver it on the same "channel" as cable TV or PPV and say it isnt internet traffic?

Even assuming that Verizon had to observe Network Neutrality "rules" on Home Fusion, which they don't, NN only applies to Internet (capital-I) routed data, not private traffic.
PastTense

join:2011-07-06
united state
Verizon is in the business of maximizing profits. So if Verizon can make more money from customers streaming from Netflix (via $10/GB overage charges) than from streaming from Redbox/Verizon (via a $8-10 monthly fee) then it will prefer the first option.
elray

join:2000-12-16
Santa Monica, CA
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Re: Overages ! Ca ching

said by PastTense:

Verizon is in the business of maximizing profits. So if Verizon can make more money from customers streaming from Netflix (via $10/GB overage charges) than from streaming from Redbox/Verizon (via a $8-10 monthly fee) then it will prefer the first option.

Wrong. Overage charges kill goodwill and beget turnover - Mom cancels the whole account and/or learns about prepaid. With iPhone customers worth at least $2K/each, no company is looking to offend over $10/gb; they want your $120/month and your two-year renewal.

Only Sprint has officially fired customers, and they paid for it.
Lamiel

join:2008-04-05
Saint Johns, MI
Reviews:
·Skyweb Online

Nope. Redbox Home Fusion streams will be off-net, toll-free, overage-exempt bulk-rate, forward-cached, etc.

Has that been confirmed by Verizon? Last I heard the terms of the plan were a complete unknown...
--
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elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: Overages ! Ca ching

said by Lamiel:

Nope. Redbox Home Fusion streams will be off-net, toll-free, overage-exempt bulk-rate, forward-cached, etc.

Has that been confirmed by Verizon? Last I heard the terms of the plan were a complete unknown...

Pure speculation.

88615298
Premium
join:2004-07-28
West Tenness
said by WHT:

At $10 per 1 GB, I can see that working very well for Verizon investors.

I'm pretty sure you don't need Verizon service to get this.

88615298
Premium
join:2004-07-28
West Tenness

Won't have any more content that Netflix

$8 for streaming either way. Also I like al the hyperbole Karl says when he mentions "huge" price increases on Netflix. Really my price didn't go up. I still pay $8 a month as always. Karl must have stock in Coinstar or Verizon.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Won't have any more content that Netflix

Your price did not go up because you choose to keep one service or the other, but did not get both.

However, if you decide to keep your service how it was with both streaming and DVD delivery then your price pretty much doubled?

I was not a Netflix customer before, so I may be wrong on this. But it was my understanding that in the beginning you got both services for about the same price as you get one for now.
silbaco
Premium
join:2009-08-03
USA

Re: Won't have any more content that Netflix

It was $10 for both.

88615298
Premium
join:2004-07-28
West Tenness

Re: Won't have any more content that Netflix

said by silbaco:

It was $10 for both.

Oh that's right so I got a price REDUCTION since I never used the DVD rental part and only wanted streaming.

88615298
Premium
join:2004-07-28
West Tenness
said by Skippy25:

Your price did not go up because you choose to keep one service or the other, but did not get both.

Actually I never bothered with the DVD rental.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
said by Skippy25:

Your price did not go up because you choose to keep one service or the other, but did not get both.

However, if you decide to keep your service how it was with both streaming and DVD delivery then your price pretty much doubled?

I was not a Netflix customer before, so I may be wrong on this. But it was my understanding that in the beginning you got both services for about the same price as you get one for now.

Only some of the Netflix plans went up. I'm talking streaming and rental plans. The one I was on went down 6.5%. Several plans went up, one stayed the same, and two or three went down in price.

The news always focused on the 1 out plan which had a larger percentage increase, but Netflix had plans ranging from 1 out to 8 out plus streaming.

Again, my Netflix streaming and rental plan did not go up, it went down in price.

rit56

join:2000-12-01
New York, NY
Reviews:
·Time Warner Cable

Verizon Business

Just like their coming pay with your phone credit card service I will never us this service. Verizon screws their customers due mainly to the duolopy and lack of choice. Here I have a choice whether to use Redbox and I will NOT. No discretionary revenue to you Verizon.

spewak
R.I.P Dadkins
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Re: Verizon Business

said by rit56:

Just like their coming pay with your phone credit card service I will never us this service. Verizon screws their customers due mainly to the duolopy and lack of choice. Here I have a choice whether to use Redbox and I will NOT. No discretionary revenue to you Verizon.

Verizon will probably link the low monthly payment if you have Verizon family share plan so as to get you over that cap and stick you with overages.
This whole idea is going to stink to data cap heaven.
--

Romney equals Epic Fail!

88615298
Premium
join:2004-07-28
West Tenness
You have a choice to not use Verizon cell phone service too. So please.
decifal

join:2007-03-10
Bon Aqua, TN
kudos:1

another

Another service i've been out priced from simply because of lack of real broadband options

••••••
Bob61571

join:2008-08-08
Washington, IL

Another lost opportunity

This is a great idea for suburban/rural areas, but VZ refuses to price it right. Also, those overage caps are way too high.

VZ had a winner, until they over-priced this thing.