Redbox to begin streaming movies

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Kiosk-based DVD rental service Redbox will begin streaming movies online, the LA Times reported. The move stands to put Redbox in direct competition with Netflix, which reported in January it has 20 million subscribers.

Redbox has said it will launch its service with a partner, but has yet to disclose what company that partner will be.

The brand is reportedly branching into streaming movies because its parent company, Coinstar Inc., saw less Q4 revenue than expected and recognizes that consumers are increasingly watching movies streamed to their TV rather than on DVD.

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