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 newsnet5.com 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 Geek.com 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?