RedBox is now feeling the heat. After becoming one of the masters in the video renting world, RedBox is feeling the heat/need to evolve and go digital. They want to hold their ground, and find a way to stay competitive with the big fish, NetFlix. So what’s their move?
Redbox, which became the fastest- growing U.S. video retailer with DVD kiosks and a $1-a-day rental price stores couldn’t match, is developing an online strategy to stay competitive with larger rival Netflix Inc.
The company, the biggest division of Coinstar Inc., may use a Web service to expand its library beyond the 200 or so titles crammed into each of its 24,000 or so DVD dispensers, President Mitch Lowe said in an interview from Redbox’s headquarters in Oakbrook Terrace, Illinois.
“The way we look at it is, How can it help us deliver to our customers things we can’t do in our kiosks?” Lowe said. “What role might it play in expanding our selection?”
The approach Redbox outlines in October will be designed to narrow the gap with Netflix, which offers more than 100,000 titles by mail and 20,000 older films online. It may also help the company take more business from Blockbuster Inc., which is closing stores and recently skipped a debt payment.
Personally, I believe this is a must. With each passing year, the tradition of renting movies/videos physically is becoming extinct. If RedBox wants to stay relative and competitive in this area, they need to make move towards digital. They need to find a way digitally that can make them compete with the likes of NetFlix, iTunes, Best Buy, and very soon, Wal-Mart Stores. I believe their chances of surviving and competing will depend strongly on service, quality of stream, and low prices.
What do you guys think?
