Redbox removing some kiosks

James

DTVUSA Member
#1
Redbox has more than 40,000 locations but it seems there are just no more locations left. They have decommissioned 500 centers so far. Earnings are pretty flat now.

"Redbox has definitely reached full maturity. The only question is: how steep is the decline?" said Steven Frankel, an analyst at Dougherty & Co.

The decline is attributed to the popularity of streaming content. Redbox Instant, a joint venture with Verizon, is not doing well according to sources. So will Redbox remain in the years ahead? Will streaming replace most of the DVD sales?
 

MrPogi

Moderator, , Webmaster of Cache Free TV
Staff member
#2
I don't think Redbox kiosks are going away anytime soon. Redbox instant is not a good bet, the only way they can pull it out of the fire may be to stream new movies rather than the crap they have now, perhaps on a PPV basis. As Redbox matures, there are going to be some kiosks removed and others relocated. And of course there is competition from online rental companies. But online rentals cost about $4-$5 for a 24 hour rental of a new release DVD vs. $1.20 - $1.50 at Redbox. Of course, I may have to wait a few extra weeks to rent @ Redbox and drive to the kiosk. And there are also those folks who don't have broadband and are unable to stream. For most of them, Redbox is the only rental solution.

I don't understand why it costs more to rent a new video online than it does to rent at a kiosk.
 

Fringe Reception

Super Moderator, Chief Content Editor
Staff member
#3
There are two Redbox kiosks at my local 7-11 (quickie-mart) store and based on the annoying lack of parking and continual flow of movie customers, that location must be a hotspot. It certainly contributed to closing the last Blockbuster in my area, but an independent movie rental shop three blocks away soldiers on. Their nitche is having an amazing colloction of Classic movies available.

Jim
 

MrPogi

Moderator, , Webmaster of Cache Free TV
Staff member
#4
Jim, I still have a Hastings in town. A little more expensive than Redbox for new releases, but they are cheaper than VUDU, etc, and have new releases as soon as the DVD is available for sale.

I try to avoid the kiosks at grocery stores and McDonalds as the traffic is heavy and the busy kiosks malfunction more often. I prefer to use the ones at gas stations and Walgreens.
 
#5
As long as the process remains convenient, easy and cheap, I think Redbox will last a while. There are still a couple of generations out there who are more comfortable with movies in physical form than digitized - and they create demand, if my local video store is anything to go by. It's more of a 'why not?' business model, and it's not subscription or membership-based, so it can still flourish. I for one would happily wander down to the 7-11 to rent a DVD rather than clicking a button on my remote.
 

bunny22

DTVUSA Member
#6
And there are also those folks who don't have broadband and are unable to stream. For most of them, Redbox is the only rental solution.
Netflix. They still have DVDs. As do some libraries.

I don't understand why it costs more to rent a new video online than it does to rent at a kiosk.
Convenience. You don't have to get up off your couch, twice (once to get the DVD and once to return). I think rentals are overpriced, but I can see why they are able to charge more for streaming than physical in this case.
 

bunny22

DTVUSA Member
#7
There are still a couple of generations out there who are more comfortable with movies in physical form than digitized - and they create demand, if my local video store is anything to go by.
I have an older relative, who is not at all tech-savvy, who uses the Roku on a daily basis, but can hardly put in a DVD to play without help. So I don't think that this is universal.

And also - even though I've been streaming TV since it started becoming available - I would definitely rather buy physical media, if I'm going to buy (but renting I'd just as soon rent digital).
 
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