Redbox: Competing in the Movie Rental Market

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Case Details:

Case Code : MKTG261
Case Length : 11 Pages
Period : 2005-2010
Pub Date : 2010
Teaching Note : Not Available
Organization : Redbox
Industry : Service / DVD Rental
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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" ...At Redbox, we believe change is imperative to keep the industry vital and relevant, and we're doing a number of things to ensure that the company adapts to change. In addition to surveying consumers on an ongoing basis, we're testing video games and Blu-ray rentals to gauge consumer demand, because while we believe in the viability of the DVD for many years to come, we also recognize that consumer preference will continue to evolve..." ¹

- Mitch Lowe, President, Redbox, in 2010

"A cornerstone of Redbox's success is that its kiosks are located where consumers are already shopping, saving them an extra stop in their day and appealing to consumers' impulses." ²

- Samantha Flynn, a Redbox spokeswoman, in 2010.

Introduction

In September 2010, DVD rental provider, Redbox, rented its one billionth movie - a unique achievement for the company that started the concept of selling movies through fully automated redbox kiosks.³ Ever since its modest start in 2002, Redbox had revolutionized the movie rental business in the US. Its initial business model focused primarily on dispensing items of necessity such as milk and eggs and other fast foods to American consumers.

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Redbox: Competing in the Movie Rental Market - Next Page >>

1] Shane Smith, "Redbox CEO: We're Innovative, Not Disruptive," www.insideredbox.com, May 24, 2010.
2] Erick Galindo, "Video Rental Industry Succumbs to Redbox," www.pasadenastarnews.com, September 7, 2010.
3] "Movie Milestone, Redbox Rents One Billionth Movie," www.theweekly.com, September 7, 2010.

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