At $1 a day Redbox is perfect for consumers, not so much for Hollywood

Redbox posts



Redbox -- the outfit that makes its ends by offering consumers $1 DVD / Blu-ray rentals in kiosk stations positioned at grocery stores, Walmarts and other retail outlets -- has let its CEO out of the corner office long enough to speak with VideoBusiness. With B&M rental outlets feeling the pain from by-mail / online alternatives, VB questioned whether Redbox's business model was viable. Gregg Kaplan noted that the model was indeed viable and profitable, harping on the fact that many families are redirecting out-of-home entertainment dollars to at-home entertainment. He's also publicly confident that the business will continue growing "at a brisk pace," and given that its market share currently sits at just 5% to 10%, it definitely has the room to grow. We have to say, Redbox has it pretty good. While many are too lazy to make a trip to the video store, it's actually convenient to grab a flick while you're out grabbing produce; hit the read link for the full interview.
We've already polled the audience this year to see if you all still visited the tried-and-true rental store on any sort of regular basis, and most everyone made clear that the act of driving out to rent a movie was simply old hat. A new writeup over at the Press of Atlantic City takes a look at how close these establishments are to caving to alternate forms of renting. These days, consumers have a copious amount of options: VOD via their pay-TV provider, Netflix (by mail and online streaming), Hulu, VUDU and tons more internet-based alternatives. It doesn't take long to realize that driving out to get a movie isn't required anymore. Interestingly enough, not everyone expects the mom 'n pop rental shops to close up in the coming years, with an increasingly aging population still sticking to their roots and doing things the ways they always have. What say you? How long does the B&M rental outlet model have before it's overtaken by newer methods?DVDPlay already announced its intentions to start stuffing Blu-ray Discs into its movie rental kiosks earlier this year, and we've been waiting ever since to hear a similar announcement from rival Red Box. Today, we're still waiting for said announcement, but we've received a report from the wonderfully named Aloha, Oregon that at least one Red Box movie rental kiosk has a Coming Soon flyer for Speed Racer on BD. When our tipster contacted Red Box concerning the discovery, the representative did affirm that if Blu-ray was shown, Blu-ray was on the way, though we aren't sure if they'll cost more than the $1 DVD rentals. Keep an eye out at your local kiosk and let us know if you see the same.










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