Time magazine has run an article calling Redbox “one of the Great Recession’s great success stories”. The piece, which is definitely worth a read, gives a brief history of the kiosk renter and discusses Redbox’s phenomenal growth last year as it installed one new kiosk every hour.
One topic covered in the article is Redbox’s much-ballyhooed
agreement with Warner to delay new release rentals. Time
consulted Tom Adams, the principal analyst with Adams Media Research, who opined the following on whether the deal would help or hinder Redbox:
“Consumers know they’re still getting quite a deal . . . I mean, it’s a dollar. People will find something they want to watch. It’s not like they’re going to walk across the parking lot to a Blockbuster.”
The Time columnist, Brad Tuttle, and his wife performed an informal experiment with popular new release The Hangover after they tired of the long wait time for it in their Netflix queue. After a few weeks of checking local Redbox kiosks, they found the title in stock and removed it from their queue. Based on this (admittedly unscientific) finding, Tuttle recommends using Redbox to obtain popular new releases and relying on Netflix for lesser-known catalog titles. The local library is also mentioned as an option.
Insiders, how many of you use Tuttle’s formula and make use of both Redbox and Netflix? Do you see the two movie renters more as competitors or are they complementary services for savvy renters? Tell us what you think in the comments.