Redbox Instant, the streaming video service operated by US telco Verizon and movie and game rental kiosk specialist Outerwall, is to close down on October 7th as the venture has not been as successful as anticipated.
The service was launched in early 2013 in competition with services such as Netflix, Amazon and Hulu Plus.
“The joint venture partners made this decision after careful consideration,” the pair said in a statement, adding that the service had not been as successful as either partner hoped it would be.
Subscribers will receive an e-mail notifying them of the termination of the service, with a separate e-mail being sent on October 10 with details on refunds.
The service marked Verizon’s first online video service outside its network area where it markets multichannel pay-TV programming via its FiOS TV service, in competition with with cable providers such as Comcast and Time Warner Cable.
It had sought to extend its subscriber base by making the service available on Roku and Google TV.