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Chris over at the NewTeeVee blog wrote an interesting post about the scenario of Blockbuster buying Redbox. Here is an excerpt:
Blockbuster needs to do something to juice up its business because Netflix is eating its lunch. But getting into the hardware game will be an expensive endeavor, esp ... Continue reading »
Blockbuster needs to do something to juice up its business because Netflix is eating its lunch. But getting into the hardware game will be an expensive endeavor, esp ... Continue reading »
7 months ago
Here is one potential buyer: PayPal/Ebay. The purpose would be to showcase mobile payments.
7 months ago
The benefits.. Redbox makes a big splash converting all those Blockbuster signs.. and makes serious money from the staff downsizing.. and then makes even more serious money from selling off the prime real estate ...
7 months ago
I like you just the way you are.
Love,
Mikey
7 months ago
See, I used to work for Blockbuster and it was during that transitional time when they got rid of "late fees" and started Blockbuster Online and all that. I remember the first day I had to sort out all the returned-by-mail movies and get new ones ready to be shipped out. Blockbuster has definitely TRIED to keep up with progress. I've even had their "Rewards" program for the last 2 years and got more than my share of free movies every month (without buying anything more than the $10 Rewards card - I learned a few tricks of the trade).
But with all that, I can just say that Blockbuster is going down. Their prices are sky high. Their selection is still the best (for non-online vendors), but you can buy an old movie off eBay for the same price you'd rent one there.
I agree with what someone else said, Blockbuster shouldn't be able to afford Redbox. Redbox is just so much better. If Blockbuster DID manage to buy Redbox, they'd probably jack up the rental prices.
The idea of Redbox buying Blockbuster and converting all the Blockbuster stores into Redbox lounges really isn't a bad idea. That's the only thing Redbox lacks - a decent selection of older titles. For probably a small rental price (or more crowding of current locations), they can have specialized Redbox kiosks, like "Classics" (meaning all good older movies, not just movies from the 50s), "Sci-Fi", "Action", whatever. They still wouldn't have to pay employees (beyond the basics), but they'd be able to further eat into Blockbuster's customer base that way and gain more loyalty from their own customer base.
Anyway, I think Blockbuster would mess up Redbox if they bought it. But I think if they don't, they're going to lose in physical retail too. I just think Blockbuster's a sinking ship and redbox is an awesome breath of fresh air (if only it had a wider selection!)
7 months ago
The idea of having kiosks for new releases, comedies, classics, dramas, indies, foreign, documentaries, etc. is great. But, another great thing would be game kiosks (360, PS3, and Wii).
I also think that you could do a unlimited package with kiosks, where rather than pay $1/day, you simply pay the monthly fee.
One other possibilty (and McDonald's wouldn't like it) would be for Blockbuster to sell dinner to go (pizzas -- perhaps just take n bake) inside their stores, with the kiosks in what normally would be the dining area.
Regardless, I think Blockbuster ultimately be forced to change the direction with its B&M stores. This would be one way to change their footprint.
7 months ago
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If they bought it, I don't see them keeping red box the way it is. I see them increasing the prices or trying to monopolize more control in the industry and keeping prices high, which is not what they need to do. Their consumers have lost faith in them because of how they pinch pennies in the past... Had they thought of the everyday consumer more effectively and lowered their prices instead of raising them and created an electronic means of getting their product to their customers (like red box has done) thereby reducing overhead costs, then they wouldn't be in the bind they are in...
I say keep the red box and keep teaming up with grocery stores, McDonalds, and wal-mart to house them....not block busters.
The only contract I would take out with blockbusters, if I were red box, would be one to house and possibly fill the machines...I wouldn't let blockbuster buy them, but you could team up under contract for blockbuster staff to fill them and even have one at blockbusters for customer convenience, then give blockbusters a kickback on % of sales....
Don't sell out your idea red box...
my 3 cents
7 months ago
If a big company like them gets hold of this it may morph into something UGLY.
7 months ago
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Someone suggested putting Redbox's in airports, hotels, etc. That wouldn't fit their busiess model, as you are already going to be at the airport anyway -- having a Redbox there doesn't lure you to the airport vs. the train station or driving your own vehicle.
Second, having a rental lounge staffed with employees would not work - employees could dispense videos from racks much more inexpensively than costly machines, so you're back to a plain ol' retail locaction.
McDonald's would be very unlikely--at least while there are Redbox's inside of McDonald's stores--to allow them to sell drinks, chips, etc, as that would compete with their food business, and if you still had the ability to rent/return anywhere, McDs would be losing traffic generation benefits, while redbox would be competing with them in food sales. McDonald's at one time saw retailers that sold microwave ovens as competitors, as it was a means for people to get hot food fast, vs. running down the street to the golden arches.
Don't forget, that most of Redbox's founders are former McDonald's executives -- While they owe no allegience to McDonald's, there are undoubtedly many unwritten agreements that exist. Don't forget that McDonald's is MUCH larger a corporation than Redbox -- they could crush Redbox if they wanted to. This is a company who has been known to buy real estate and open a location and sell dime hamburgers across the street from a licencee that had fallen from favor.
7 months ago
Now Blockbuster wants to buy Circuit City and Redbox? I think Redbox can do better and so can Circuit City. Perhaps they should get together and buy Blockbuster?
7 months ago
7 months ago
the idea of having 2 redbox at a location is great.
i would like to see more old clasics..gone with the wind,humphry bogart,jimmy cagney the 30 and 40 movies like tntetc.
busy hotels would be great as everyone brings the family and on rainy days a movie would be fine
again do not sell get more locations
7 months ago
http://finance.comcast.net/www/news.html?x=http...
I actually think combining an electronics retailer and Circuit City might not be a bad move. Circuit City is in serious need of restructuring, as it really can't compete with Best Buy.
I really don't think BBI will try and ruin the convenience of Redbox. Several years ago, BBI purchased an online DVD store based in Phoenix. They actually improved on that company's offering and came up with a viable competitor to Netflix.
At this point, BBI could buy DVDPlay, The New Release, or any of the other kiosk businesses OR buy Redbox OR start their own.
I just get the feeling that BBI is trying to find a way to better leverage itself. They have a recognizable brand. I mean when you go rent movies the old line is "make it a Blockbuster night."
By getting into home electronics, Blockbuster can cross market DVD/Blu-Ray players for DVD rentals, consoles for game rentals, its STB for Movielink, portable players for Movielink, and televisions to bring it all together. It could put Blockbuster video stores directly into existing Circuit City stores -- which would put it a step ahead of Best Buy. Or, it could put Blockbuster-branded kiosks into Circuit City. The Blockbuster stores could tap Circuit City's inventory for its own stores. The possibilities are limitless.
7 months ago
On the surface Redbox is cheaper. $1/night, but I have had my latest rentals since last Tuesday. Guess what? I could have rented the movies for less at Blockbuster.
7 months ago
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As this country moves further into a recession, every penny counts. Redbox is and will be a godsend for those feeling the financial crunch. Blockbuster executives are well aware they may be out of a job once the recession in "full bloom" so trying to corner the market by having a monopoly is in "their" best interest, not the public's.
Do not sell out to the "big guys"! Keep Redbox the way it was intended: friendly, affordable and fun!
7 months ago
7 months ago
#1: User goes onto Redbox website (or maybe kiosk-based selection) to select a movie they want to watch which isn't currently in stock.
#2: Redbox checks other semi-local Redbox locations to see if an existing hard copy could be shipped/brought in within a couple days.
#3a: If no hard copy can be shipped, the machine connects to Redbox via a high-speed line, downloads the movie, and burns it internally. Labeling could be done either with an internal printer, or via something like LightScribe
#3b: If it exists somewhere else, it's flagged to be shipped out OR picked up and re-delivered with the next pickup
#4: Movie is now in local Redbox, and customer receives email telling them it's ready and being held for them. Customer then goes and picks up movie, watches it, and returns it. It's then available in that Redbox for someone to select or to be relocated to another Redbox
How awesome would that be?
7 months ago
7 months ago
Think the ideas of a Redbox lounge with multiple kiosks or a burn on demand machine for non-stocked titles would be good ideas, but both would require big capital outlays for new equipment or buildings and staff. Living in a town with both video stores going bankrupt within a couple of weeks of each other, I really appreciate the RedBox machines to get just the movies I want when I want them for a minimal rental charge or sometimes for free with a discount code.
7 months ago
6 months ago