My thought is YES! At the end of the summer, I'd like to see Redbox come out with a quarterly statement showwing if their sales increased OR DECREASED! I think they made a major blunder when they dropped the weekly code. Not only was it a public relations slap-in-the face to their loyal patrons, BUT my bet is that the use of those weekly promo codes generated big bucks for Redbox. Probably at least 30% of those using the code didn't return the dvd(s) within a day,therefore being charged the $1 for each additional day. This is revenue "earned" that they likely would not have earned at all by the users of the weekly promo code.
Did Redbox Make A Major Blunder When They Dropped The Weekly Promo Code?
(15 posts) (14 voices)-
Posted 4 months ago #
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It is a good question. I doubt Redbox is going to share their numbers on this, though, so the only way we will know what effect it had on them is to see if they bring weekly codes back.
I am a bit torn on the effect it is having. For the most part, $1 is a paltry amount to pay for a movie. But, I do believe that people might rent the lesser known movies using promo codes even if they normally wouldn't if they had to pay. And, as you say, there are likely A LOT of people who do not return their movie after the first day, either because they didn't get around to watching it or they just plain forgot. This doesn't happen to me too often with Redbox, but it does with Netflix.
Funny how I find it easier to drive to the store and drop off my Redbox DVD then to walk to the mailbox sometimes! :)
Michael
Posted 4 months ago # -
I agree.. I know I have been late on a few movies in the past and and been charged $1 for it. When Redbox made the decision they thought "logically" but did not take into account human habits and psychology which is a more determinant factor in this case.
Like you have said many of us have rented movies that we would otherwise not have rented were it not free BUT because of forgetfulness or psychological due to it being free sometimes we let it slide a day or so and thus paid late fees.Posted 4 months ago # -
I just started using Redbox about 1 month before this change (timing like just has been the story of my life ;-). The pattern I was starting to fall into was use the promo code on Monday. Then when returning those DVDs, renting another batch on Tuesday. However, I suspect that after the initial rush of getting all the "good" DVD's, given the limited capacity (?400-500?) per Redbox machine and the rate at which new choices/releases are cycled thru, I'd drop to a lower rate of patronage for Redbox. Perhaps from Redbox's point of view, slowing down the frequency of the free codes doesn't matter as much if this is a prevalent customer pattern.
Posted 4 months ago # -
OUTCAST...I too think this is a prevelant customer pattern--Patrons using promo code on Monday, then Tuesday upon returning that dvd(s), seeing/impulsively having to have/paying for Tuesdays new releases. Besides those who forget or are late returning their Monday promo dvd(s) and then PAYING anyway for the extra night(s)rental, your observance is also one more reason why Redbox should bring back the weekly code. Generating revenue is all about getting people to their kiosks in the first place! Once your standing before that Redbox kiosk on TUESDAY with all those NEW RELEASES flashing before your eyes,you're more likely to be impulsive and PAY for one of those new releases. Also, anyone with little kids know how you can't take a kid past a candy store without them screaming for candy. If parents are returning promo Monday dvds on Tuesday and their kids see pictures of that day's new Disney releases, etc, it's all over. That parent's going to pay for those new kid dvd releases to keep their kids quiet, and also pay/rent another new release dvd for the adults in the family.
Posted 4 months ago # -
I know I usually picked up groceries while I was at Albertsons getting my FREE movie. I also was able to get more people interested in using the REDBOX device since they did get some free movies. PLEASE GIVE US MORE TO TALK ABOUT.
Posted 4 months ago # -
Don't dicount the possibility that they reduced codes for the summer because they felt kids out of school and with time on their hands would use a high percentage of the free codes, but wouldn't be nearly as likely to keep the DVDs for extra days or pick up another one on Tuesday, etc. Maybe they'll be back in the fall.
Also, unless Redbox are a bunch of incompetents, they are tracking the use of their codes and how it affects profitability. We here can guess lots of people keep the DVD for extra days, but they know how many people do. By tracking the rental habits of individuals they can estimate how much extra business codes generate which they wouldn't have otherwise.
Posted 4 months ago # -
I think Redbox definitely made a blunder. I looked forward to those codes, just like so many people here have stated:
Rent free movie on Monday, come back Tuesday to see New Releases (which you then pay for). Maybe it does come off as 2-for-1, in Redbox' eyes, but 2-for-1 is better than none.Walt D in LV
P.S. Now that they're rolling out Blu-ray titles, I'd be MUCH more inclined to rent with the Monday codes.
Posted 4 months ago # -
Here is the reality. There re so many people tat use redbox now. We all love the fact that it only costs a buck.. The proof is in the line at the kiosk with people holding every debit card in the family so the can rent 15 movies at a time. I happen to know that the reduction of promo code use is in response to the many mooches out there that will never pay for anything.
Posted 3 months ago # -
So has redbox stop sending out Monday Promo's? I have not been receiving any in a while and was wondering why.
Posted 3 months ago # -
Think about the last time you paid multiple late fees to Blockbuster or any other video rental and they exceeded $3 per day. A tiny $1 late fee is your own fault if you can't get a movie returned once you view it! Everything is relative- the rental is only $1 per day and they are current view movies. You need a reality check!
Posted 3 months ago # -
Heck yeah! They TOTALLY jinxed themselves...
There's barely been a movie worth $1 released since they dropped the codes...
Their revenue from me has dropped to $0, mainly because there haven't been any GOOD movies available since about that time.
Posted 2 months ago # -
I absolutely love Red Box..You can spend as much or little as you like, however the time frame and no more real codes is a bit of a turn off and making me think of maybe just getting cable..
Posted 2 months ago # -
i would rather have them do a loyal program where the more you rent the more you get free... like rent 5 get 1 free... i know if they had something like this i would rent more...
right now im a toss up... there are 3 movies i want ... i can either spend 3 bucks at rebox. or spend 1 buck at redbox and use 2 free coupons at 2 other video stores i go pass and only spend 1.00 for tonight... now if redbox did a buy 2 get 1 free deal iwould got all 3 at redbox and maybe even kept them for a few extra nights
Posted 1 month ago # -
what does the selection of movies have to do with renting them after the promo ended weekly?? it was what the movie companies put out, not redbox! yes, the 5 movies and 1 free is a good idea. but they couldn't do the free weekly forever! that is not good business, as it was just for us to get in the door, and redbox has locked all of us movie renters in! for only a buck of course!
Posted 4 weeks ago #
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