Unwilling to concede the online video rental business to fellow Blockbuster-buster Netflix and other rivals, Redbox looks to be developing a web strategy to stay competitive. Bloomberg is reporting that during an interview with Mitch Lowe, the Redbox CEO revealed that his company “may use a Web service to expand its library beyond the 200 or so titles crammed into each of its 24,000 or so DVD dispensers.”
Lowe offered the following on the potential strategy, which may be unveiled as soon as October:
“The way we look at it is, How can it help us deliver to our customers things we can’t do in our kiosks? What role might [an online strategy] play in expanding our selection?”
Even with an online game plan in the offing, Redbox will not soon turn away from the physical media rentals that have gotten it to this point. Said Lowe:
“The disc business has a great future . . . Especially with Blu-ray coming out. It extends the life.”
With details on Redbox’s web strategy in short supply, it’s time to speculate. What can Redbox do to compete with and beat Netflix, an established player with a streaming library of more than 20,000 titles? What kind of program/subscription/etc. would Redbox need to offer for you to follow it online?