It looks like 2008 was a good year for Redbox. According to Coinstar’s most recent earnings report, Redbox revenue doubled (to about $400 million) and earnings nearly quadrupled (to $72 million) from 2007 to 2008.
At the end of 2007, Redbox had 6,550 kiosks. When 2008 came to an end, they had 12,900.
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By the end of 2009 Redbox expects to have about 20,000 kiosks in operation.
Another interesting statistic is Redbox’s overall market share for the DVD rental market. In 2007 they had about 2.3% of the market. Now, at the end of 2008, they jumped to 9%. Company projections show they will have 13% of the market at the end of 2009.
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Looks like Blockbuster is not going to go down without a fight to Netflix and Redbox.
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In a somewhat unexpected move, they have announced that they will add video games to their Total Access service.
Blockbuster will be adding this sometime in the second quarter as a pilot program, with plans to roll it out nationally sometime this summer. Will this change cause you to take a second look at Blockbuster?
It may indeed be time to take another look at Total Access and see if they can offer something of value and compete again in the marketplace.
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Note: A commenter on the original article noted that Netflix has recently been advertising GameFly in their mailers, possibly signaling their entry into this as well. Perhaps a whole new war is coming…
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Here is your Monday Redbox code, returning again at its normal earlier time!
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Expires tonight (Mon, Feb 9) at midnight.
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In the March 2009 issue of Consumer Reports [subscription required], readers were surveyed about their satisfaction with DVD rental companies. In the kiosk category, Redbox scored the highest of all providers.
Redbox received top scores for price and convenience, something we all know very well here.
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The overall winner, though, was Netflix. The big loser: Video On Demand (VOD).
VOD got low marks due to limited selection and the fact that you generally only have 24 hours to watch the movie. That sounds a lot like Redbox, doesn’t it? So, it seems it VOD movies only cost $1, Redbox might be in trouble.
Do these results surprise you at all? What does Redbox need to do to beat out its larger competitors like Netflix and Blockbuster?
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Share your thoughts below.
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The new year is not so new anymore, but a new Monday promo code from Redbox is ready for you…
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Expires tonight (Mon, Feb 2) at midnight.
iPhone / iPod Touch user? Checkout the news on the new Inside Redbox Mobile application…
Great news for all of you iPhone (and iPod Touch) users out there…
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The Inside Redbox Mobile application is almost ready to go!
We hope to get it in the Apple App Store in about 3 weeks or so, but for now we are giving out 50 invitations to test the beta version over the next few weeks.
To get more details on the app, visit the application’s home page over at AppBox Mobile, where you will find screenshots, a video, and more…
To become a beta tester, you need to follow the instructions below exactly. We will send out invitations to the first 50 people to submit the information requested…
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