Abstract

The case deals with the disruptive impact of Redbox Automated Retail, LLC (Redbox) - a company that offered DVDs for rent at a low rate of US$ 1/day through kiosks - on the US (DVD rental industry. It begins by describing the company’s inception, and how it managed to grow rapidly over the years. The case also details some of the important features of Redbox’s business model, including the use of patented technology to enhance customer experience. It then discusses some of the problems the company is facing, including its legal disputes with some of the leading movie studios. Finally, the case presents an overview of the competitive scenario in the DVD rental industry, and the company’s future prospects.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the disruptive effects of an innovative service on mature markets.
• Appreciate the use of technology in improving the customer experience.
• Evaluate the different business models in the DVD rental industry.

Keywords

Redbox, DVD Rentals, Movie industry, DVD kiosks, Video rentals, First sale, Business models, Movie distribution, Innovation