Not so fast: Redbox Instant startup delayed
Verizon (NYSE: VZ) Chairman-CEO Lowell McAdam has put the kibosh on reports that the long-anticipated collaboration between Verizon FiOS and Redbox would go public this month. Instead, McAdam said, Redbox Instant by Verizon won't be instantly appearing at all, and probably won't be available commercially until early 2013.
McAdam offered the new direction during an appearance at the 40th Annual UBS Global Media and Communications Conference in New York City and later in conversations with reporters, the Hollywood Reporter said.
Originally scheduled to happen in August, the launch will now be delayed until late in the first or early in the second quarter of next year. It is in the employee beta testing phase and, though Verizon is "very pleased" with the progress, McAdam said, it's not pushing forward beyond that until January.
Earlier reports had filtered out that Redbox Instant by Verizon--considered by many to be the service provider's way of going head-to-head with Netflix (Nasdaq: NFLX) in the online video rental space--would happen this month.
Redbox Instant by Verizon "opens up a whole new market," said McAdam, noting the carrier is "cautiously optimistic" about the new business venture.
McAdam also addressed the entire FiOS pay TV service, which the carrier has said is not being rolled out beyond additional markets.
"There is plenty of room to grow," he told the conference, suggesting that the Redbox venture, when it launches, would combine with new apps and higher broadband speeds to build more subscriber momentum.
- the Hollywood Reporter had this story