If you were Redbox and you have the low rental DVD business wrapped up, where do you turn your sights to next? It looks as if Netflix’s video streaming business is the target. Highdefdigest reports that in a Redbox survey sent out to a selection of customers, the question was asked – would they be interested in an unlimited streaming video service that would cost $3.95 a month (under half the Netflix lowest option). Even better, the fee would include unlimited streaming and free rentals from any Redbox kiosk.

Netflix are on a roll right now and launching its service on every device known to man. The service is expected to grow by two million subscribers this year from gaming consoles subscribers alone.  A Redbox service that undercuts them so much could be a big threat.

However, Netflix has agreed so many deals with hardware manufacturers to include its software that the Redbox service could be severely limited.  Netflix instant streaming is built into television sets, media streaming devices, game consoles, Blu-ray disc players and much more right now.  They also recently struck a deal with movie studios Fox and Universal. This means Redbox would have a lot of catching up to do.

Redbox would also need to strike deals with the Hollywood studios, but will they agree with such a low price structure? Some say there is not enough demand for additional pay to view services, but you can be sure Redbox have analysed the market.

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