Verizon’s Netflix competitor dies from lack of customers, criminal activity

The Verizon/Redbox joint venture never caught on, but things took a turn for the worse this year. “Redbox Instant has a problem that may just break its neck: The video service disabled sign-ups for new users because of criminal activity three months ago and has yet to open up the gates again,” Gigaom reported on Sept. 29. Redbox customers’ payment information wasn’t leaked, but criminals had been using Redbox Instant’s website “to verify credit card numbers they illegally obtained elsewhere.” Though criminal activity caused Verizon and Redbox to stop taking new signups, it was lack of interest that sealed the decision to kill the service entirely. A Redbox Instant spokesperson told GigaOm this weekend that “the service had not been as successful as either partner hoped it would be. We apologize for any inconvenience this may cause our customers.” – Jon Brodkin,Ars Technica 
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