As reported by Digital Trends, Verizon and Redbox  have decided to discontinue their Redbox streaming service. The service, which also included a number physical monthly rentals, was most likely eliminated due to a low subscription rate, although Verizon and Redbox have remained relatively tight lipped on the subject.

 

When the service was initially launched it faced an uphill battle against established services such as Netflix and Hulu. The increased amount of original content being produced by competing streaming outlets placed added pressures on Redbox’s streaming service. Since it’s inception, Redbox’s instant video service has also failed to turn a profit. The final nail in the coffin may have been the spate of credit card fraud incidences that forced Redbox to stop accepting new subscriptions to Redbox Instant about 3 months ago.

 

The service will officially shut down Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time. Refunds will be given to those who’ve recently renewed.

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