By Jones Dias, Abhinav Kant, Vamsi Kothapalli, Kristal Nicholson, Filippo Sclafani and Pankaj Tamrakar
As recently as four years ago, almost no one would have been aware of what the word Redbox meant. Today, Americans have become devoted customers of this rising star of the impulse DVD rental industry. But will the fun and ease of Redbox’s unique impulse proposition last through the next decade? Do advances in technology, with an ever-changing array of readily available options, such as downloads or streaming, mean that the days of the Redbox are numbered?
The discussion seems to vary as to which strategy Redbox needs to take in order to continue to thrive in the rental business. Coinstar (Redbox’ parent) CEO Paul Davis, expressing his ideas in a recent conference call, considers streaming a “significant opportunity” while maintaining that he foresees a “long, profitable life ahead” for Redbox’s movie-machine kiosk business.