Between Redbox and Netflix, I never had to visit another Blockbuster or Hollywood Video ever again. Not sure why it really mattered, but at the time back then I suppose it had to do with convenience.
Flash forward into today and we see Web downloads or streaming video becoming the next big thing. Faster than waiting for DVDs or Blue-ray discs, streaming is something that is a huge hit in my own household.
So the idea of Redbox joining Netflix in this streaming realm actually makes a lot of sense. With downloading and streaming content legally becoming a huge success, it would behoove Redbox to provide content to fill the gaps being missed by Netflix streaming services.
In order for any of this to work though, Redbox would do well not to merely duplicate efforts seen by Netflix. They would need to make content available by flat fee and try offering much more content than Netflix is currently. The problem right now is for people streaming Netflix over hardware like the Wii and Roku, Redbox is missing here and would need something similar like the PS3 pr Xbox 360.