Thursday, August 6, 2009

Redbox vs. Netflix vs On Demand

It seems that people are still willing to travel to a store to rent a DVD. Redbox, the vending machines now seen outside grocery stores, is appealing to a number of consumers who would rather rent their movies for the low price of one dollar a day. According to their owner Coinstar, sales have risen at an exceptionally fast pace, 43% from a year ago. At a dollar a day for top films, the price/value proves very enticing. And one retailer, Albertson, is offering a free night's rental with a purchase of more than $25. That can be viewed by the consumer as a great promotional deal. Still it requires the consumer to remember to drop off the video the next door or be faced with additional charges. At such a low price, it also is a blow to DVD sales, as most consumers now feel they can rent with ease at an extremely low cost and don't need to own.

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