What They Say
DVD & Blu-ray kiosk operator, Redbox is looking for its investors to support a plan to transform is current user base of 40 million to using online streaming. The firm’s revenues dropped by 34% to $546 million.
71% of the Redbox kiosk customer base of around 40 million users describes itself as “bargain hunters,” willing to drive down the street to rent a disc for $2 vs. paying six bucks for the same movie on a digital transactional service.
The firm already has a streaming app that has had 48 million downloads, but believes that its knowledge of what its customers want and enjoy will enable it to survive.
What We Think
I first came across Netflix many years ago and got a subscription for the DVD rentals for my daughter who was at university, with part of her course in film studies. She really enjoyed the access to many titles. That firm, of course, made the transition for most of tis business some years ago.
I hadn’t realised that the DVD kiosk business still existed. After my initial surprise, I remembered that my sister, who lives in rural America, probably still uses this kind of service as her broadband is still quite limited. (BR)
