Even the most non-tech savvy people know that the days of physical media dominance are drawing to a close. As bandwidth slowly expands and online content delivery methods proliferate, people are increasingly turning to streaming and other web-based sources for their entertainment.
Redbox, a company whose entire business model is currently based on discs, has been rumored for months to be working on a streaming service that would allow it to compete with streaming-dominated Netflix and others.
The company has yet to announce details on a streaming initiative, nor has it announced who its partner would be in such a venture. Redbox president Mitch Lowe, at least publicly, feels that the potential market for a streaming service remains niche, and will stay that way for at least the next few years. Says Lowe:
“Four or five years from now, half of the households in the U.S. will have the device, have the broadband, have it turned on and have the ability to get these movies. However, when you look at — when you look at the consumption models and you track those going forward and you put — you apply that as a percentage of the overall movie rental business, it reaches about 28 percent of the business in 2015, so still a small fraction.”
What do you think, Insiders? Are Lowe’s comments prescient or preposterous? What price point would a Redbox streaming service have to be at to entice you to use it? How close do you think Redbox is to launching such a service? Weeks? Months? Dare we say it: years?