Redbox vs. Netflix: Not as Much a Threat as You Might Think

Well there has been some rumbles on how Redbox can compete with Netflix and I have to say they may be overblown at this point.

To that end, Redbox tracks rentals to predict the right mix of titles and the right number of copies for each location. It also lets customers go online and reserve a DVD in a specific kiosk, then pick it up in person. The $1 price may be the initial draw, but most people end up paying to keep DVDs for two or three days.

If Redbox grows into a serious challenge to Netflix, it will have done what two much larger companies, Blockbuster and Wal-Mart Stores Inc., could not.

I'm still not sure why a person would rather go to a kiosk in order to buy a DVD when they can just make a few clicks and either get it by mail or stream it on their TV or Xbox. I can see some people using these kiosks when they are in the supermarket instead of buying the DVD at Wal-Mart but not huge numbers.

Looking at the site makes me not want to rush out use their service. Most of the reason is that I would hate to reserve the thing online then drive to some place, park, go into the store, hope there wasn't some online mix up, and pull the DVD out of the machine and then take it home to watch. Then I only get to watch the movie for 1 night and then have to return the thing. This would be even harder with a bunch of kids in tow.

I'm not sure if Redbox is even a leg up from the Blockbuster experience in anything except for the price. With Redbox you can't browse around for a movie that you might not have picked normally like you can at Blockbuster. I see Redbox as more of a Blockbuster in a box and not a serious contender for Netflix at this time.