With the rumored launch of Redbox’s online strategy drawing closer, speculation about what form it will take and how competitive it will be with Netflix is on the rise. Forbes has analyzed the relative advantages and disadvantages of both companies, and has concluded that Redbox would have to move at “sonic speed” to catch up to Netflix in the streaming business. Here is some of their reasoning:
Redbox’s Small Library
In order to compete with Netflix’s library of nearly 20,000 streaming titles, Redbox will need a substantial amount of content of its own. Says Forbes:
“Redbox primarily offers newer titles, making the company’s $1 rental charge a great deal for customers. but to succeed in the streaming video market Redbox will need to vastly increase the size of its library.”
Netflix’s Millions of Compatible Devices
Besides an enormous library of content, Netflix also enjoys a huge lead in device penetration, with more than 50 million devices in the gaming console segment alone. Just today, Apple announced Netflix compatibility with its updated Apple TV device. Other companies that Redbox could potentially partner with, such as Sonic Solutions, have nowhere near the device penetration of Netflix.
Does Redbox stand a chance if and when it dips its toe into the streaming stream, Insiders? Swing by the comments and let us know what you think.