The Red Rivals

          We hear so much about Netflix – massive losses in the recent year, a great last quarter, share price suddenly increasing, maybe even filing for bankruptcy? The story seems to always be changing. With the demise of our beloved file sharing website Mega Upload (yes, I have finally come to terms with it), it is so evident how obsessed we are with the online streaming world! We can all agree that a successful business aims to create customer satisfaction, and with illegal streaming websites being shut down by the dozen, there is going to be a growing need for up-to-date content. Redbox and Verizon are coming onto the scene as a joint venture and are teaming up to cater to our need. More specifically, they are entering Netflix’s web-service territory. I sense that these red rivals are going to be at each other’s throats, but maybe not for long.

            For those of you who don’t know, Redbox is a physical DVD rental that allows you to take DVDs from their kiosks for the night. With Verizon on its side, the JV is looking to have an Internet-based streaming-and-download service. The future of these companies is bringing content to the web. Both Netflix and Redbox-Verizon offer affordable subscription services, accessible on the media devices they want (TV, laptop, tablet, smart phone). So the question is - who says that Redbox-Verizon is going to win this battle? Apparently it’s their content and technology. Netflix got it all wrong and is now considered the crappy streaming company that offers its subscribers B-class movies. Redbox-Verizon released an attractive mission statement: “Together, we are erasing old technology boundaries, freeing people to spontaneously enjoy the entertainment they want, whenever they choose, using the devices and media they prefer, at home or away”. Nowadays, consumers want current information, a wide variety of it, and are certainly unwilling to be patient for it. I don't believe that simply securing a show such as Mad Men will keep Netflix consumers subscribed. Redbox-Verizon is going to have to up their "game" to be bigger and better than its rival, by offering more TV series at a quicker release rate.

            Redbox and Verizon aren’t the only ones looking to take Netflix down. Companies such as Amazon, Hulu, and Dish Network/Blockbuster want to “unseat Netflix in the streaming space”. This makes me wonder … with such similar business models and a relatively large number of competitors in the streaming market, is the Redbox-Verizon joint venture going to live past the initial hype? Netflix was once the coolest service to hit our TV sets, but it has essentially only gone downhill from there. Who says the same won’t happen to the newest member of the online streaming market?