It’s become fashionable – especially since last week when HBO and CBS announced their online plans – to look at Internet streaming as a digital gold rush. But the folks at Redbox tell a different story, in an SEC filing today, about their experience with their now-defunct joint venture: Redbox Instant by Verizon. Parent company Outerwall says that it contributed $77M to the venture, and received $70.5M — including disc rentals tied to the subscriptions and a $16.8M reimbursement. The good news? The company expects about $29.9M in tax savings from deductions tied to the losses.
Verizon executives didn’t discuss the Redbox Instant venture this morning when they released their third quarter earnings. But they’re undaunted as they plan to launch their own video streaming service. The HBO and CBS announcements indicate that “content providers have realized that there’s a whole population out there that do not to subscribe to satellite TV or linear TV… and want something smaller, more convenient for them,” Verizon CFO Fran Shammo told analysts. Although it won’t hurt conventional pay-TV just yet, it’s “something that we are very, very interested in, especially around wireless and even as we go out into more of the broadband type market.”