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You know those DVD vending machines that lurk outside 7-11 stores and in the corners of supermarkets? The ones that offer a small selection of movies that the company thinks you will want to watch? Well, you may be hearing a lot more from Redbox pretty soon.
While the company made its debut with its unique movies via vending machine model, it is now looking to break into instant streaming – a business in which other providers such as Amazon Instant Video, Hulu, and the legendary Netflix have already staked a pretty sturdy claim.
Do they stand a chance?
Redbox does boast low prices and two different methods of accessing the movies (instant streaming and from the kiosks). While pricing can have a big influence when services are very similar, selection plays a big part. Personally, I am willing to pay significantly more for a service that provides me with whichever movie I want. So, first we have to see if they can come close to what other services have access to.
The other factor is the consideration of exactly how important direct-to-consumer delivery is to those paying for the service. While it's inarguable more content is viewed via digital streaming than the mail-delivered DVDs nowadays, this could be a service many customers still find extremely valuable.
The question I'd like to find out the answer to is if Redbox and Netflix both offered the same content for the same price, who would win – the service that offered DVDs available at a kiosk, or the service that delivered the movies and TV shows directly to your front door?
Does your company incorporate home delivery into its business model? Check out our Home Delivery World taking place this April in Las Vegas.
Blog provided by Laura Lupo, marketing manager at Terrapinn Inc.