Verizon execs can’t seem to refrain from throwing cold water on the hopes of many consumers for the upcoming Redbox Instant streaming service. Verizon CEO Lowell McAdam recently characterized his feelings toward the service as “cautiously optimistic”, and now CFO Fran Shammo says the service likely won’t see a profit until at least 2014.
Shammo’s comments came during Verizon’s quarterly earnings call with investors. Verizon’s acquisition of Hughes Telmatics and establishment of Verizon Digital Media Services will also take some time to recoup their associated costs, according to Shammo.
“So when you look at Redbox, Hughes and VDMS, these will all start to contribute to top-line revenue in [FiOS] wireline for 2013, but again, probably not much in the profit area . . . Because they are all startups and I would think that in 2014, these will really start to contribute to the overall profit.”
Are these Verizon executives just being prudent by downplaying expectations for the upcoming streaming service, or are these revelations admissions of concern with the service’s viability?
[via Home Media Magazine]
I just got my 30 day free deal with it.. And I will not renew it..
A. NO TV SHOWS. And Very few movies..
B. NO CLOSED CAPTION.
I understand it is new. But when you roll out a new deal. You want something that people will come back for. REDBOX instant is not it.
And I told them so.
If they think they can take on NetFlix like this. Dream on!
Not going to happen..
And profitable. I don’t see how they can make money as it is now. They will need to really step it up, and do a load of work..
I wish them luck.
I currenlyh have the service on a 30 day free trial basis. My major problem is that my 3D TV DOESN’T support it so I can’t stream the films to it.
I’m on my 30 day trial as well. The streaming selection is insulting. Anyone who would pay for what they have to offer is a fool. Complete failure
It’s not your TV it is your internet speed which should be at least 20MB in order to run any streaming shows. I found this out by calling Netflix.
20MB is high as a minimum requirement. We run Netflix over a 6MB DSL connection and have had no problems.
Our Sony blu-ray player doesn’t have the app to watch Redbox (i.e. not supported), so if we were to sign up we would have to watch it on our PC.
The movie selection is pretty thin, and as already mentioned, no TV shows. The movies that are available on Redbox Instant are mostly content already available with Netflix streaming. The only redeeming feature of the service is that you have the kiosk rentals as well. I expected more!
You can hook your Computer to your TV if your TV has a set up to hook your computer to it. I watch NetFlix on my TV that way..
Be well.
Thanks for the response, Dano. We actually have a PC that we use specifically as an OTA DVR and for streaming Hulu, etc. It has an an HDMI video card, connected to our TV. Cut the cord about 2 years ago and haven’t looked back. We have a Blu-ray player that we use for Netflix, etc. Love our setup, don’t miss the big cable bill.
Hi Phil.
I cut the cord about two years about also.Have not looked back. I have NetFlix online. And Block Buster two out at a time in the mail. . Hulu if I want it. I am Hard of Hearing so CC Closed Caption is a must for me. NetFlix has it on over 3,500 Movies and TV shows. And will have it on everything by 2014. The RedBox deal online. No can do.. They are a Day Late and a Buck Short. I will not renew it.. After my 30 day free bee. .
Just going to keep what I have and be happy.
Also you can run your RedBox online movies to your TV. You will need a Y hook up. THen Everything that goes to your computer will go to your TV…
I can tell you how to do it if you like..
Be well.
Book’em Danno!
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I started my free trial last week & was very disappointed with the streaming selection…I didn’t find any of the new or popular movies available at the kiosk.
I won’t be renewing, but thanks for the 4 free movie rentals.
Hi,
Same here. Just watch the Credit Card bit.. I am hearing people saying they can’t take there card out when they cancel…