Redbox Achieves A Rental Record

Netflix scared Blockbuster and now it may be Redbox's turn to scare Netflix and On Demand. " The DVD rental provider, Redbox, said it broke its one-day rental record New Year's Eve with more than 2 million DVDs checked out by U.S. customers." For a dollar a day, consumers can watch their favorite movies. Compared to VOD at $4 - $5 dollars a day, Redbox is a financial keeper. It seems that consumers will put up with traveling to the local store to access a vending machine and they will put up with rentals and penalty costs for not returning dvds in time, rather than pay more for the convenience of a watching on demand. In a down economy, do Netflix, Blockbuster, and on demand have a new problem on their hands? Consumers change viewing habits for any number of reasons and price is definitely an important factor. As Redbox becomes more successful, watch as on demand competes with more same day and date releases as DVDs, longer viewing windows, and perhaps even LOWER prices.