Will+the+death+of+Blockbuster+effect+Redbox?

The business of movie rentals is starting to use more technology. According to [|Blogging Inovation] there is an impact of Blockbuster going out of business that most people are probably not anticipating. The likelihood that Blockbuster’s demise will actually speed up the demise of Redbox. This is because, unlike the assumption most people would make, Blockbuster and Redbox are more complements than substitutes. When Redbox emerged people used it as an arbitrage against Blockbuster to get cheaper rentals from Redbox while still veing able to experience the physical browsing of movies and the selection advantage Blockbuster provides over Redbox. Some peoplelike to get out of the house and see things, touch things, interact with physical things, and to share the purchasing experience. This is true for people who like to take their small children out to #|rent movies. These physical and social interactions can not be duplicated online. Different people prefer different experiences. Some may rather just use Netflix and some might like to be more social. Some people think that the combination of Redbox and Blockbuster is better than Netflix, and without Blockbuster Netflix is the better option. In a post-Blockbuster market many consumers will come to the conclusion that Netflix is their best solution. Redbox is likely to follow Blockbuster out of the market in the next 3-5 years and the Blockbuster/Hollwood/Netflix/Redbox quartet will be replaced by Amazon, Netflix, and #|iTunes. Amazon and Apple already sell and rent movies. Many people may not know that they rent movies, but they have the opportunity to build up their awareness and possibly introduce subscriptions as Blockbuster and Redbox exit the video rental market. Netflix will #|continueto be the leader in the market while their two major competitors fail. This is because they had the courage not just to try and disrupt Blockbuster and Hollywood, but also to try and disrupt themselves. They are now trying to stop mailing discs and distribute them digitally. Even though mailing discs is what made them successful, they now want nothing to do with it if they can get everyone to transition to digital distribution.

I do agree with this article, however I think it might be a long time before Redbox goes out of business. Looking at this from a business perspective, Redbox supplies what the customer demands. The company has so many convenient locations and I think a lot of people would rather get out of their house instead of just staying in. A lot of customers of Redbox are probably already out and just decide to rent a movie. I don't think it is worth it for some people to purchase a monthly plan for Netflix or other movie dealers. It all depends on how many movies you watch per month and how much time you have. Redbox has also made it easier to locate the movies that you want to see. If you watch this video on the [|Redbox threat] it is easy to see how they incorporate more technology with their product. The application that is available for smart phones allows you to find out what movies different locations have. This can prevent unsatisfied customers because you always know what movies are available. According to the [|Get Rich Slowly blog] there are upsides and downsides to Redbox. The upsides are that their are no monthly fees and you don't have to worry about unused subscriptions. The downsides are that the movies aren't available instantly and if you forget to return your dvd's you will no longer be getting a bargain.