Verizon, Coinstar Delay Redbox Instant Launch

Verizon, Coinstar Delay Redbox Instant Launch
Getting an OTT service up and going — and with lots of must
see content — is difficult, very difficult. Getting
distribution rights and prices you can base a business model
is by itself very hard and takes hundreds of hours of
negotiations. Look at how many years it has taken Apple to
make iTunes content available in 119 countries.

Verizon and Coinstar have delayed the first launch of their
Redbox Instant OTT service from Q4 2012 to as late as Q2 2013,
according to Verizon CEO Lowell McAdam speaking at a UBS
Global Media and Communications Conference. He did not say
whether the delay is caused by negotiations over content
distribution rights or technical issues of getting the Web
site up and running. In either event it makes what Netflix,
Hulu and Amazon have done even more impressive.

What Verizon Coinstar are trying to construct is more complex
than existing OTT services. It is a combination of:
– Subscription service like those of Netflix, Hulu Plus and
Amazon Prime
– Purchase and rental service like iTunes, Vudu and Amazon
Instant
– Kiosk rentals unlike anyone else although Netflix offers a
DVD-by-mail rental service.

They may also be trying to enable a live feature that would
show linear TV, sports, news, and weather just like a pay TV
service. That would put Redbox Instant in direct competition
against the pay TV companies. Obtaining the rights to do that
will be very difficult and probably not included in the
initial launch.

About the Author

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