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redboxinstantRedbox Instant just couldn’t compete with Netflix.

The streaming video service from Bellevue-based Outerwall and telecom giant Verizon notified customers that the service will shut down on Oct. 7 at 11:59 p.m.

redboxinstant1“The joint venture partners made this decision after careful consideration,” according to a statement from both companies. “The service had not been as successful as either partner hoped it would be.”

The joint venture emerged on the scene in 2012 with an $8 per month subscription service, but it could not gain any traction against Netflix or Amazon Prime Instant Video. As Gigaom notes, the number of titles available via Redbox Instant was smaller than those of competing services.

Meanwhile, Redbox, which operates about 40,000 movie rental kiosks, also is struggling. Redbox revenues for the second quarter were $445.5 million, down almost 7 percent year-over-year.

Shares of Outerwall are down 14 percent this year, with the stock valued at $1.14 billion.

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