Redbox and Amazon, two unlikely partners at first glance, should team up to offer a subscription-based streaming model, according analyst Eric Wold with Merriman Curhan Ford. Wold believes that the two companies, neither of which currently has a streaming offering, could make a powerful combination if they joined forces.
“I’m suggesting a partnership for a subscription model where subscribers would have access to both digital rentals via Amazon and physical rentals via Redbox . . . While we do not believe Redbox necessarily needs a digital strategy to be successful, we believe it has become necessary to offset concerns about the demise of DVDs and obtain a more appropriate valuation multiple,”
By getting access to Redbox’s network of tens of thousands of kiosks, Wold believes that Amazon could avoid the sales tax issues involved with having a physical presence in most states.
A perfect partnership or a pipe dream, Insiders? What would the benefit be to Redbox to work with Amazon on such a venture? And do you agree with Wold’s opinion that Redbox doesn’t necessarily need a digital strategy? Visit the comments and tell us what you think.
(via Home Media Magazine)