29 {{ upvoteCount | shortNum }}
29 {{ upvoteCount | shortNum }}

Are Redbox and other "vending machine video rentals" going to threaten Netflix?

by TJComer02
24 replies
I've been noticing that these "redbox" new release DVD rental kiosks are everywhere, and everytime I pass by one there is a LINE of people. I wonder how much this is going to affect netflix? Also, blockbuster is coming out with their own kiosk. What sucks is that I'm pretty sure that if Redbox does catch on, then it would be hard for them to create a CPA or CPS offer because of the fact the user just pays at the machine whenever he wants to watch a movie instead of belonging to a membership like Netflix. Anyone have any opinions on this?
#netflix #redbox #threaten
  • Profile picture of the author Tina Golden
    People aren't paying Netflix for movies. They are paying Netflix for the convenience of home delivery and the convenience of not having to make a deadline for returning it.

    Redbox is cheap, a $1 a night, but you have to return that movie in 24 hours or get charged again.

    Two different markets.

    Tina
    Signature
    Discover how to have fabulous, engaging content with
    Fast & Easy Content Creation
    ***Especially if you don't have enough time, money, or just plain HATE writing***
    {{ DiscussionBoard.errors[2632357].message }}
  • Profile picture of the author Kenster
    The redbox and similar video rental machines have been around for many years and are direct competitors of Netflix and other online and brick and mortar video shops.


    In my personal opinion, the future of video rental is all going to be live streaming, on-demand type services. Netflix offers streaming and that will be their long term success play.

    Without looking at the data and just by observation, a lot of the red box customers are those people looking for convenience, but not yet aware or dont yet have access to video streaming or on-demand type service. Over the coming few years as the average folk begin to learn how to stream, then clearly this will be one step up in terms of convenience and it will be the best streaming video company that dominates.

    So are the red boxes a competitor to Netflix? Yes
    Are they going to threaten Netflix? I Dont Think So
    What will be the future? Instant Streaming Video.

    ~ken
    {{ DiscussionBoard.errors[2632379].message }}
    • Profile picture of the author thebarksmeow
      Originally Posted by Kenster View Post

      The redbox and similar video rental machines have been around for many years and are direct competitors of Netflix and other online and brick and mortar video shops.


      In my personal opinion, the future of video rental is all going to be live streaming, on-demand type services. Netflix offers streaming and that will be their long term success play.

      Without looking at the data and just by observation, a lot of the red box customers are those people looking for convenience, but not yet aware or dont yet have access to video streaming or on-demand type service. Over the coming few years as the average folk begin to learn how to stream, then clearly this will be one step up in terms of convenience and it will be the best streaming video company that dominates.

      So are the red boxes a competitor to Netflix? Yes
      Are they going to threaten Netflix? I Dont Think So
      What will be the future? Instant Streaming Video.

      ~ken
      I definitely agree. I know about 14 people personally streaming netflix. Out of those 14, 12 used to go to the redbox. 10 are streaming on the xbox 360 and the other 4 on the wii.

      Here's the kicker: All 14 were on trial and planned to cancel at the end of the trial. All 14 still have a subscription. Netflix isn't going anywhere anytime soon. I think streaming is the future of digital entertainment period. Just look at the devices that have been coming out in the past years. Ipod, ipad, kindle, android phones/iphone, etc.
      Signature

      {{ DiscussionBoard.errors[2632471].message }}
  • Profile picture of the author mattlaclear
    We just had a Blockbuster kiosk added to the gas station that we live a block away from. We have been using it so much that we ended up canceling our Netflix subscription yesterday. Why wait a few days between movies when you can go down to your local kiosk and grab them immediately?
    Signature

    Free Training for SEO Providers in the United States - https://happyseoclients.com/happy-seo-clients-training/

    {{ DiscussionBoard.errors[2632505].message }}
  • Profile picture of the author thebarksmeow
    And why even leave the house to go to a kiosk when you can stream it instantly?

    Oh yeah, I have one of those blockbuster kiosk at a gas station too. The problem is that kiosks always have a limited selection of movies. Why settle for less?
    Signature

    {{ DiscussionBoard.errors[2632517].message }}
    • Profile picture of the author JamesCpaWay
      Blockbuster "blueboxes" aren't as popular in the area I live in, however the RedBoxes are literally EVERYWHERE. I have 2 within walking distance. Almost everyone I know has used them a few times already.

      The live streaming is definitely the best part about Netflix though, in my opinion. $9 a month and you don't have to leave your couch, what's not to love for most people.
      Signature

      James Gabbard
      James@cpaway.com
      www.cpaway.com
      $1 minimum payout !

      {{ DiscussionBoard.errors[2632648].message }}
      • Profile picture of the author jeffrey73
        Blockbuster Declares Bankruptcy -- Now See What Big Company Will Drop Next
        Signature
        {{ DiscussionBoard.errors[2632727].message }}
        • Profile picture of the author thebarksmeow
          Originally Posted by jeffrey73 View Post

          Right on time. lol
          Signature

          {{ DiscussionBoard.errors[2632777].message }}
        • Profile picture of the author maty
          Originally Posted by jeffrey73 View Post

          I'd been declined access to the blockbuster affiliate programme earlier on today and wondered why, now I see
          {{ DiscussionBoard.errors[2632818].message }}
          • Profile picture of the author jeffrey73
            Jim Cramer ( MAD MONEY ) is talking about how great a stock Netflix is. What does that tell you?
            Signature
            {{ DiscussionBoard.errors[2633694].message }}
            • Profile picture of the author dockrue
              Originally Posted by jeffrey73 View Post

              Jim Cramer ( MAD MONEY ) is talking about how great a stock Netflix is. What does that tell you?

              That Netflix will be the next to die.
              Signature
              glucosamine liquid
              {{ DiscussionBoard.errors[2634457].message }}
            • Profile picture of the author Kenster
              Originally Posted by thebarksmeow View Post

              And why even leave the house to go to a kiosk when you can stream it instantly?

              Oh yeah, I have one of those blockbuster kiosk at a gas station too. The problem is that kiosks always have a limited selection of movies. Why settle for less?


              Exactly. The future will be about instant streaming. Even though I think Netflix is ridiculously inexpensive, eventually there will be a pricing model that blows redboxes, blueboxes, and physical movies altogether out of the water.

              Remember, most of the people still going to video rental stores are older generations who dont know and who arent willing to learn how convenient technology can be. As the next more techy generations get older and as technology advances, instant access to any media will be dominant.




              Originally Posted by jeffrey73 View Post

              Jim Cramer ( MAD MONEY ) is talking about how great a stock Netflix is. What does that tell you?

              thats all I have to say about cramer
              {{ DiscussionBoard.errors[2636982].message }}
              • Profile picture of the author Freeman77
                I love Netflix, and I've noticed a recent boost in quality of movies available for instant streaming.

                In fact, today I'm going to purchase a new HDTV that has integrated Netlfix streaming (I already use it a lot on my Xbox 360).

                However, those Red Boxes are also a huge business success, and I definitely think it will be several years before they are obsolete. It might be a while before the average consumer has access to streaming Blu-ray-quality movies (Redbox recently started selling Blu-ray).

                I bet you didn't know: The guy who founded Redbox is a co-founder of Netflix.

                Here is a great article about how Blockbuster probably could have saved themselves by integrating kiosks back in the day, but declined: Can Blockbuster be saved? - By Farhad Manjoo - Slate Magazine
                Signature

                {{ DiscussionBoard.errors[2637080].message }}
                • Profile picture of the author JamesCpaWay
                  Blockbuster basically sank themselves when they didn't take netflix / redbox seriously enough to change how they do business. They needed to adapt and change, and make things cheaper and faster. They had the brand recognition and could have possibly still held onto the lion's share if they had played it right.

                  Instead they chose to stay stubborn and greedy. They charged their customers overpriced fees for 2 nights rentals, plus outrageous late fee's, and the whole having to leave home to rent from them was fairly inconvenient.

                  They had plenty or time and opportunities to change their business model, but they failed to and got left in the dust because of it, now filing for ch11 and currently almost $1b in debt.

                  Now that they are shutting down more stores and trying to follow Netflix business model it may be too little too late though, only time will tell for sure.
                  Signature

                  James Gabbard
                  James@cpaway.com
                  www.cpaway.com
                  $1 minimum payout !

                  {{ DiscussionBoard.errors[2637224].message }}
                  • Profile picture of the author Kenster
                    Originally Posted by JamesCpaWay View Post

                    Blockbuster basically sank themselves when they didn't take netflix / redbox seriously enough to change how they do business. They needed to adapt and change, and make things cheaper and faster. They had the brand recognition and could have possibly still held onto the lion's share if they had played it right.

                    Instead they chose to stay stubborn and greedy. They charged their customers overpriced fees for 2 nights rentals, plus outrageous late fee's, and the whole having to leave home to rent from them was fairly inconvenient.

                    They had plenty or time and opportunities to change their business model, but they failed to and got left in the dust because of it, now filing for ch11 and currently almost $1b in debt.


                    Now that they are shutting down more stores and trying to follow Netflix business model it may be too little too late though, only time will tell for sure.

                    That is absolutely correct. They failed to be resilient and adapt to changing consumer demands. As technology increased in the industry, people demanded convenience and brick and mortar shops (Blockbusers focus) are simply not convenient.

                    Technology and convenience almost always trumps.


                    They should have hired some business strategists a long time ago. Seemed pretty obvious to everybody except them what their fate was.
                    {{ DiscussionBoard.errors[2637629].message }}
  • Profile picture of the author Lou Diamond
    Hello,
    redbox is good, but they have too many B type movies.
    I am surprised that Blockbuster even lasted this long with the crazy prices that they charged.
    The game rental prices are a big ripoff.
    Signature

    Something new soon.

    {{ DiscussionBoard.errors[2635050].message }}
  • Profile picture of the author healthstatus
    I am not sure how many of the stores the company owned and how many were franchises, but if they were dealing with franchises they probably had their hands tied as far as competeing with them with a streaming option.

    My ganddaughter is not quite a year old and I bet she will never "own" a movie, she will just browse the tv/movie watching device and watch whatever she wants on demand.

    Physical media is going away.
    {{ DiscussionBoard.errors[2637507].message }}
  • Profile picture of the author Varolo
    I like the redbox better.
    {{ DiscussionBoard.errors[2637870].message }}
  • Profile picture of the author InternetWriter
    I got netflix... I wanted to cancel... Then I forgot, several months ago that is.


    Thanks for reminding me haha.

    They make their money off of low charges a month, people forget.
    Signature
    www.google.com
    {{ DiscussionBoard.errors[2644796].message }}
    • Profile picture of the author Barry Unruh
      Originally Posted by InternetWriter View Post

      They make their money off of low charges a month, people forget.
      I would disagree, they make their money off of people who love convenience.

      When we are in the states we use Netflix for two reasons. We order movies we want to watch on DVD in the living room. We watch streaming video in the bedroom on our laptops.

      It is the biggest bargain in movies I have ever found.
      Signature
      Brain Drained...Signature Coming Soon!
      {{ DiscussionBoard.errors[2645759].message }}
      • Profile picture of the author Kenster
        Originally Posted by Barry Unruh View Post

        I would disagree, they make their money off of people who love convenience.

        When we are in the states we use Netflix for two reasons. We order movies we want to watch on DVD in the living room. We watch streaming video in the bedroom on our laptops.

        It is the biggest bargain in movies I have ever found.

        Hi Barry! Wasnt your user name Kansas Dragon or am I going crazy. The latter is certainly a possibility.


        In any event, I agree 100% with you. Netflix is so cheap and such a great service its amazing. Even their DVD rental program, envelopes come pre-stamped and super easy and convenient.

        Great service and great price, thats why I love it.

        I take it back....I love it because I've made a lot of money promoting it!!

        ~ken
        {{ DiscussionBoard.errors[2649776].message }}
        • Profile picture of the author Nate D
          I could be wrong but I see Redbox as being a fad. I've seen people who don't return the movies and never get charged anything. Could be wrong but if I was an investor I'd choose Netflix over Redbox anyday.
          {{ DiscussionBoard.errors[2649809].message }}
          • Profile picture of the author Kenster
            Originally Posted by Crop Circle View Post

            I could be wrong but I see Redbox as being a fad. I've seen people who don't return the movies and never get charged anything. Could be wrong but if I was an investor I'd choose Netflix over Redbox anyday.

            Agreed, I think its a much better long term play. And Netflix has a CPA program so we should all be cheering for them!

            Ken
            {{ DiscussionBoard.errors[2651254].message }}

Trending Topics