Redbox vs. Netflix: DVD kiosks to online strategy

By Peter Chubb - Jul 20, 2010

Now that Blockbuster has left a big hole when it comes to downloading movies and TV shows on the Internet, DVD kiosk company Redbox is about to make the move to an online strategy. They need to do it fast before other companies try to cash in on the hole that is left, one that Netflix has managed to dominate.

Currently Redbox can only store 200 DVD movies in one of their kiosks, this means that there is a limit to what they can earn. Making the move to offer movie and TV streaming will then mean that there will be no ceiling to what the company can earn.

Being able to connect to users on the Internet will allow them to know what it is they want, which President Mitch Lowe explains that they are unable to do with the current kiosk business. This is according to an article on Business Week.

Blockbuster is still in the online game for now, but for how long? They have been closing a number of stores and do not seem able to compete with Netflix and their extensive movie catalog. There has never been a better time for Redbox to move into the online streaming business, and they could have a good start because they are a brand that the public know and love.

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Also See: Redbox’s Pretty Impressive 2009 Statistics