Redbox Launches On Demand Service for Digital Movie Rental, Purchase

Redbox Kiosk Chicago - H 2014
AP Images

Redbox Kiosk Chicago - H 2014

Films from Disney, which sued Redbox on Dec. 1 over the sale of movie download codes, are not currently available via Redbox On Demand.

Redbox is bringing on-demand digital movies to its customers. 

The company, known for its DVD-rental kiosks inside grocery and convenience stores, on Wednesday launched a VOD and electronic sell-through service called Redbox On Demand. 

Now, customers can choose between renting or purchasing physical DVDs or renting or purchasing streaming versions of Redbox titles. Films that are purchased will be available to download for offline viewing. 

"Redbox customers have asked, and today we're delivering an On Demand option that offers them the best of both the physical and digital worlds," CEO Galen Smith said in a statement. "Redbox provides our customers with choice — the value they want and expect from our kiosks, the instant gratification of On Demand rentals and purchases, and the availability of new-release content, all without monthly subscription fees." 

The Chicago-based company says that 35 million people have downloaded the Redbox app, with transactions available there as well as via the Redbox website and connected TV devices such as Apple TV, Chromecast and Roku. 

The Redbox On Demand library may not be the exact same as the DVD library, but will offer many of the same new releases. It also will include a library of older movies and TV shows. Prices will start at $4 for 48-hour rental and $10 for electronic sell-through transactions. 

Redbox says that its On Demand launch partners include Warner Bros., Paramount, Lionsgate, Sony, Fox and University. Disney movies will not be available for digital rental or purchase. 

On Dec. 1, Disney sued Redbox for offering digital codes that allow customers to download copies of movies. According to the complaint, Disney says that Redbox is buying and disassembling its "combo packs" to sell the DVDs and digital download codes separately.