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, especially in an increasingly crowded field already packed with big names like Apple, TiVo, Xbox 360, Vudu and soon the Netflix LG box.
Finally, by leveraging the existing Redbox kiosks in non-video locations like grocery stores, Blockbuster could take advantage of impulse renting. People are already used to the idea of DVDs being sold in supermarkets, this would nudge them a little further and into downloads.
While an interesting idea, I don’t think its going to happen. I left a comment there, and agreed with frequent Inside Redbox commentor Davis Freeberg: Blockbuster cannot afford Redbox.
Redbox is too valuable right now and already has more locations than Blockbuster. While the rent-by-kiosk space is still relatively new, it is gaining a lot of users for its convenience and low prices.
Redbox just needs a new website that is easier to use and more “web 2.0”, and they will likely be unstoppable. If anyone from Redbox corporate is listening – I know what you need to do, and am happy to share that with you, if you are interested.
In any case, what do you think: Should Blockbuster buy Redbox? Should Redbox let them?
I personally think there is a better combination, and I will post about that soon…