Verizon's Redbox will shut down because it can't keep up with giant video streaming companies, Netflix and Amazon.com.

Outerwall, Inc. and Verizon Communications Inc., the two companies behind Redbox Instant, announced over the weekend the video rental kiosk hasn't been as successful as first hoped.

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Verizon's officials admitted it failed to gain enough customers against giant video-streaming service Netflix.

Redbox Instant was intended as a video kiosk specializing in DVD, Blu-Ray Discs, and video game rentals with an option of video streaming. It was launched in 2013 to compete against Netflix

In a joint statement, Outerwall and Verizon said the official shutdown of Redbox Instant will be on October 7.

"The joint venture partners made this decision after careful consideration. The service had not been as successful as either partner hoped it would be," the joint statement said.

Subscribers will receive an email notifying them about the termination of the service. This October, subscribers will also receive another email containing details of refunds.

Redbox Instant is Verizon's first venture of into video streaming outside its network operating region.

The wireless carrier only offers web video services to its subscribers via its FiOS TV service that competes against cable providers like Time Warner Cable and Comcast Corpration.

TagsRedbox Instant, verizon, netflix, Amazon