As expected, Outerwall Inc.'s Redbox Automated Retail LLC is testing a potential newtransactional digital video-on-demand and "EST" offering, Variety reported July 21, citing anemailed statement by a company representative.

According to the report, the company introduced an app forApple Inc.'s iPad, calledRedbox Digital, to let some customers test the new offering.

The Redbox spokesperson reportedly said the test willdetermine how the company plans to proceed with the streaming service.