OAKBROOK TERRACE, Ill., Oct. 7 (UPI) -- Redbox Instant, the streaming video service developed by Redbox and Verizon, will shut down completely on Tuesday.
Users were notified of the closure on Monday after receiving a "shutdown notice" when they logged into the service. Subscribers will soon receive more instructions on how to get a full refund for this month's services.
Redbox Instant was launched in 2013 as a competitor to streaming services like Netflix and Amazon Prime. According to CNET, its demise is prove that there is no place for newcomers in a market dominated by streaming giants that are even producing their own original content.
The idea for the service was born in 2012. Verizon was set to hold 65 percent of the shares and Redbox, a DVD kiosk provider, owned the rest.
"The joint venture partners made this decision after careful consideration," said a Verizon spokesperson. "The service had not been as successful as either partner hoped it would be. We apologize for any inconvenience this may cause our customers."
A spokesman for Redbox told CNET growing a stable subscriber base has been a challenge for Redbox Instant and added the company's DVDs kiosks will continue to operate as usual. In a separate statement, Verizon said the service simply did not live up to its expectations.
The shutdown of Redbox Instant also marks the end of Verizon's partnership with Redbox.
