The statement read, “Thank you for being a part of Redbox Instant by Verizon. Please be aware that the service will be shut down on Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time. Information on applicable refunds will be emailed to current customers and posted here on October 10. In the meantime, you may continue to stream movies and use your Redbox kiosk credits until Tuesday, October 7 at 11:59 p.m. Pacific Time. We apologize for any inconvenience and we thank you for the opportunity to entertain you. Sincerely, The Redbox Instant by Verizon Team.”
The joint venture formed in February 2012 with Verizon having the majority ownership stake. Last year, analysts found the JV moving at a snail’s pace with the profit and revenue outlook cloudy at best. Outerwall, formerly branded Coinstar, also failed to register among its competition, (read Hulu, Amazon and Netflix), when it came to grabbing its share of audiences looking for streaming library content, despite the service’s low $6 monthly fee.