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IS REDBOX PLANNING TO SHUT DOWN ITS STREAMING SERVICE?

September 22, 2014 by · Leave a Comment 

In a move that raised questions about its longterm viability, home-video renter Redbox has stopped registering new subscribers for its Redbox Instant streaming service. In a statement posted on its website, Redbox, which is involved in a joint venture with Verizon to deliver videos online, blamed hackers who were using its system to validate stolen credit cards. Redbox said that it had halted taking subscription orders "to make sure that criminals are not misusing our system to hurt innocent third parties." Although the company’s kiosk business produces by far the largest number of disc rentals in the U.S., the company’s streaming service has been operating in the red since it was launched as a joint venture with Verizon in 2012.