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Ownership Matters: Redbox Instant has shut down

On October 7th 2014, Redbox Instant officially shut down and discontinued their movie streaming service which only existed for 19 months.

With Redbox Instant, customers could pay a monthly fee to stream movies at home or on their mobile devices. Customers could also purchase electronic versions of movies, which were made available to them in their account for on-demand viewing anytime.

Since the company is no more, they offered refunds for the remainder of any unused monthly subscriptions. But the lingering question that customers are asking is: What happened to the digital movies I purchased?

Redbox posted an FAQ about this very question:

What happens to the movies I bought and stored in my digital locker? We’re exploring options for customers who purchased electronic versions of on-demand movies and will be providing that information to you soon. We appreciate your patience.

Do you know what that really means? “Be very, very worried, because you never really owned anything.” The FAQ was posted almost three weeks ago with no update to follow.

As we gain more convenient access to music and movies in the cloud, our ownership and control of this content is under assault. As the Redbox example points out, it doesn’t matter that you paid real money for a cloud copy of a movie—your access to that copy is controlled by a gatekeeper. And that gatekeeper can change the rules or even cease to exist at any point. Redbox Instant is not the first DRM service to shut down and leave customers high and dry after purchasing digital content. Within the last decade, Walmart, MSN, and Yahoo Music ended up announcing that customers would no longer have access to the digital content they paid for.

Contrast that with the ownership experience of physical media—your CDs and DVDs. Physical media puts you in total control. Ownership rights are well established. The formats are well documented. The only real downside to physical media is that it takes up real physical space. It’s less convenient than streaming.

And that’s why we built Murfie. We wanted to make real ownership of content in the cloud a reality. We’ve realized that vision for music. Our platform makes it ultra-convenient to really own CDs in the cloud. Check back soon about movies!

Published by

Kayla Liederbach

I host a reggae radio show Wednesday nights at 7pm CT on 91.7fm WSUM-Madison called U DUB.

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