Well the time has come to say that a business that was fledgling is going to hit some serious turbulence after what I witnessed tonight.
Redbox is owned by Coinstar ticker symbol CSTR and is a subsidiary of McDonalds (a business that isnt going anywhere) however after leaving the grocery store tonight I noticed that the RedBox was missing. What somebody stole the redbox???? Nope, it has just been replaced by a new BlockBuster version of the red box which allows you to rent DVD's for a dollar a day. So now we are about to get into a competitive price war where they are battling each other to get into the most viable spaces, they will probably be over paying for the spots, and their market share is about to start diminishing.
Also may I note that coinstar does have the advantage of having McDonalds redbox's all over but as the economy proves (if) then less people will be super sizing and going back to other means of eating at a little bit higher of a cost.
On top of all of this you have to deal with high probabilities that a lawsuit will come about which has been instigated already by the movie distributors and thus creates another speed bump for RedBox and its shareholders.
1 comments:
Redbox' business model is nice because they cater to people who loves to watch newly released blockbuster movies,however because of the move of some movie production companies like Universal, 20th Century Fox and Warner Bros not to sell DVDs until the 28th day of release..Redbox will be on the losing end..anyways I hope both parties come up with something that will benefit all, including us the consumers.
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