RedBox Gets Ready for Online Delivery

Michael LuuBrianna OlsonMegan Walker

November 3, 2010

Moving Digital

• Implementing a new “digital strategy” for 2011

• Similar to Netflix and Blockbuster• Allow for added convenience • Currently offers around 600 titles • 28,900 existing kiosks

Business Issues

• Retail Pricing– DVDs currently rent for $1 per night due to no

contract fees– Future charges of $4-$6 for streaming digital new

releases

• Convenience of streaming digital may make up for the price change in consumer’s minds

Social and Behavioral Issues

• Watching DVDs is a “shared” experience• PC delivery is not so good for such viewing• Even when viewing is personal, consumers

may be drawn toward the higher quality a TV can offer

Ecosystem Issues

• Consumers must purchase the necessary equipment for streaming digital – X-box– Playstation– Wii

• This can be costly • With a limited library purchasing such

equipment might not be cost effective

Pros and Cons

Pros• Convenience• Expand RedBox presence in

the industry

Cons• Cost

– Set Up – Rentals

• Limited DVD titles• Competition

– Netflix– Blockbuster

Sources

Kim, Gary. (2010, November 1). Redbox Gets Ready for Online Delivery. Retrieved November 1, 2010, from http://iptv.tmcnet.com/topics/iptv/articles/112970-redbox-gets-ready-online-delivery.htm