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Mon Sep 1st 13:42 PM | Rating: 0 0
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Redbox: New Video Rental Competition for Blockbuster and Netflix

Regarding my comment on the servicing cost per DVD at kiosk locations. Both Netflix and Blockbuster already have the massive infrastructure needed to reduce the associated handeling costs and make the kiosk profitable. A start up like Red Box does not.
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Mon Sep 1st 13:38 PM | Rating: 0 0
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Redbox: New Video Rental Competition for Blockbuster and Netflix

Blockbuster is rolling out its own kiosks. 500 over the next few months. They will also have the capabilities for direct downloads into hand held devices.
Also Blockbuster charges 4.50 for a two day rental. However there is a seven day grace period before a 1.25 restocking fee. That works out to .50 cents a day vs. Red box 1.00. With most DVD's out for 5-6 days Blockbuster has the advantage.
Additionally blckbusters on line service blows away both Redbox and netflix by allowing for online returns to any blockbuster store and in store exchange rentals. The optimal plan runs around 34.00 per month with unlimited online and instore exchanges.
Red box is limited to the amount of dvd it can hold in each location. Also has anyone brokendown the associated cost for attending to each facility. Picking up , delivering. servicing restocking, distribution and warehousing.
The limited amount of DVDs offered does not support a full blown operation when you calculate cost per rental.
This business is at best an way for McDonalds and Wal Mart to increase their net revenues by offering the service to their customers. Much like a gumball machine.
As a stand alone company its doomed to failure.
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