Redbox Instant differs from its most obvious competitor, Netflix, in a few ways. For one, it's cheaper— the most basic, streaming-only version of the service is only $6 per month compared to Netflix's $8. Redbox also throws in up to four DVD rentals per month from one of its thousands of little kiosks if you choose an $8 option. For $9, you can make those Blurays.
The downside to Redbox Instant is that it doesn't have as large a collection of movies as Netflix, which has struck deals and built relationships with movie studios for the past decade. But it should have some big name offerings as well as recent blockbusters like The Hunger Games and more.
If Redbox can deliver enough tempting movies and a solid user experience, we could have ourselves an old-fashioned price war.