Is Redbox Instant the new Netflix?

As you all may know, Redbox kiosks have been a great sensation to today’s generation. It started as a box kiosk filled with movie options to rent for only $1/night. People loved the idea of not having to have a traditional movie store card/membership in order to rent out movies. The locations of most of the kiosks are very easy to find and most of the time are located in places where you might stop for other errands as well. According to the Gadget Review, by the end of June 2011, Redbox had 33,000 kiosks in about 27,800 locations. It was everywhere!

Today, the Redbox sensation is about to get a little better. Just when we thought Netflix offered one of the best services in streaming movies, Redbox will now go INSTANT! With the help of Verizon wireless, Redbox will be streaming movies online, just like Netflix. According to John Matarese, from the prices will be a tad bit cheaper than Netflix as well. However, the number of options Netflix has to offer with movies and TV Shows does not compare to the lower number listed under Redbox, since there are no TV shows being offered.

Many may think that this is a huge competition for Netflix, as Redbox does tend to have more up to date movies choices. However, it has yet to be released that ALL movies offered at Redbox will be streamed online. This will cause Redbox a lower advantage over selling more than Netflix. Netflix’s variety of options may be higher, but when we look back at how Redbox took over the movie/game rental industry as compared to Blockbuster, the lower variety of options did not stop it from taking over. Blockbuster definitely offered a greater amount of movies but it was Redbox’s way to present their product and easier access/availability that made them succeed.

Just like Blockbuster and RedBox, the comparative advantage for these two companies, RedBox and Netflix, will be very high, as the launching of Redbox Instant gets closer. According to Russell Holly from the winner to this will only be the company that is really offering what people want to see. It is being able to offer the TV shows, movies, games, and all that at the right time. Most people subscribe to these services for their content and availability. Today’s generation does not seat in front of the TV waiting to watch a show, not because they don’t enjoy it but because there is no time. The fact that streaming videos of that one episode you missed can be found online makes this “issue” very easy to solve.

Netflix has already been competing with other online streamers, such as Hulu, but their fan base is still huge and what has kept it alive. Do you really think Redbox Instant can change the game?

5 thoughts on “Is Redbox Instant the new Netflix?

  1. I personally don’t think that Redbox’s Instant will change much. I only say that because they aren’t offering anything new in the market. They had a very big competitive edge when it came to $1 rentals for new releases. This was an amazing idea because it was for cheap and got the latest movies in the nearest stores. They can’t compete in a market where they have less movies then Netflix because no one will want to switch over. Unless they are bringing on something that gives them a competitive edge like ordering the $1 movie online for a day viewing I don’t think it will go far.

  2. In my opinion, Redbox Instant will not turn out to be the new Netflix. Netflix has already established itself as a leader in the market and has become as common as Facebook in its field. Redbox has definitely stood out with $1 movie rentals but this would not compete as Netflix allows for unlimited online streaming for the same price as a eight DVD rentals. Redbox would have to think of something innovative if it wants to be able to compete in the market.

  3. I disagree with both responses. I think that Redbox can change the instant stream game, if they offer movies we want to see. I can’t count the times I have gone to a Redbox and the movie I want is gone. How great would it be if I could just sit at home open an App and stream it instantly without any issues? People are getting lazier by the minute and don’t want to leave home. The issue with Netflix is not the amount of shows or movies but having a new release section, that Redbox offers. Unless they start to offer this, Redbox will take a large portion of their clients.

  4. I somewhat agree with the post above. Redbox has the potential to change the game, but only if they can think of a way that sets them apart from Netflix. I personally feel that Netflix is a better source to watch TV series instead of movies. In my experience with Netflix Instant, there are a lot of movies that I would like to see but are not available to stream online. If Redbox offers a wider selection of movies to stream online, especially new releases, they might have the ability to attract customers who feel that Netflix lacks in this area. However, this might be difficult for Redbox because Netflix already has a strong position in this market.

  5. I think only time will tell with this situation. Redbox and Netflix do have their similarities, but they also have many differences. Netflix is also offered through Apple TV which is becoming popular. I wonder if Redbox will also begin to offer their services through Apple TV. Doing so would be a great benefit to them and would continue to increase their competitive advantage. However, we need to see how many movies will be offered through Redbox Instant and whether these are more up to date than their current selections at kiosks.

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