Why the writing may be on the wall for Redbox Instant

Gigaom

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. Redbox Instant’s website had been used by criminals to verify credit card numbers they illegally obtained elsewhere, and the company was quick to assure users their payment information wasn’t compromised, explaining on its website that “current customers can continue to watch great videos to their heart’s content without reason for worry.”

If their credit card doesn’t expire, that is. [company]Redbox Instant[/company], which is run as a joint venture between [company]Redbox[/company] and [company]Verizon[/company], has also been preventing existing users from changing their payment information, leading to numerous complaints on the site’s Facebook page. Browsing through these complaints also reveals that this isn’t a temporary problem. One of the first posts mentioning the issue is from the…

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