Bellevue’s Outerwall announced last week that it will shutdown Redbox Instant just before midnight Tuesday.
The company posted this statement on its website:
“Thank you for being a part of Redbox Instant by Verizon. Please be aware that the service will be shut down on Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time.
Information on applicable refunds will be emailed to current customers and posted here on October 10.
In the meantime, you may continue to stream movies and use your Redbox kiosk credits until Tuesday, October 7 at 11:59 p.m. Pacific Time.
We apologize for any inconvenience and we thank you for the opportunity to entertain you.
The Redbox Instant by Verizon Team”
Redbox Instant started in 2013, backed by Verizon. In an email to Gigaom, a Redbox Instant spokesperson said the venture had not been as successful as either party had hoped it would be, and the decision to shutter the service was not made lightly.
No word was available on the future of the Redbox Instant by Verizon team.
Outerwall released second quarter 2014 results July 31, and said that Redbox rentals had decreased 9.3 percent compared to the 2013 second quarter. The company will release its third quarter results on Oct. 30.
Outerwall’s stock had risen to $57.77 on the NASDAQ at the end of the day Friday before the news was first reported by Reuters. As of Monday afternoon, the stock was trading at $56.59, a slight rebound from a morning dip to $56.25.