1 Reason Why Redbox Instant Will Never Disrupt Netflix

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Now that Redbox Instant is live -- or live beta, to be specific -- we're seeing new chatter about the service's disruptive potential. But is it really so impressive? Wil partners Coinstar (NASDAQ: OUTR  ) and Verizon (NYSE: VZ  ) rake in millions stealing customers from rivals?

In the following video, Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova says no, and not just because Redbox isn't offering TV or funding original content. Rather, management's strategy won't permit the disruption investors might be hoping for, Tim says.

Please watch, and then leave a comment in the box below. Do you agree? Are you invested in Coinstar? Do you enjoy Redbox Instant?  Let us know what you think.

And if you're interested in tuning in to a closer view at the streaming market and Netflix's role in it, I invite you to try our brand-new premium research report. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.

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  • Report this Comment On March 28, 2013, at 11:17 AM, Franky46 wrote:

    I couldn't agree more. My thought is that Verizon doesn't want to have TV shows available because it will possibly cut into their cable tv subscriptions. And when it comes to renting newer titles through the service, it would be great if they only charged $1.20 like a normal RedBox movie, but that would drastically cut into their kiosk business. So really the problem is that RedBox Instant is competing with Verizon Cable and RedBox kiosks.

  • Report this Comment On March 28, 2013, at 12:16 PM, MarkEvans24 wrote:

    I'm a Netflix subscriber and shareholder, but I'm also curious, so I keep looking at other services. Amazon Prime and Hulu Prime have so few titles I want to see I wouldn't consider them paying for them. I don't want to drive back to the Red Box within 24 hours to return videos. Pirate streaming sites (two of which I use) are great for fresh premium TV and have lots of movies but are incredibly annoying to use and many have poor video quality. Premium cable TV is more money than I want to spend. My favorite: Netflix.

  • Report this Comment On June 30, 2013, at 9:51 AM, superf88 wrote:

    One reason Verizon-Redbox can (and *will*) kill Netflix any time it wants:

    Verizon owns the wires. Why wouldn't they shut Netflix down? They already did this on mobile by eliminating "unlimited" pricing.

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