The growing popularity of Redbox has emboldened the company to go head to head with Netflix and other online movie streaming providers.
Company president Mitch Lowe of Redbox says they will make a serious effort to compete for the growing market of online movie sharing. Redbox has appealed to many consumers because the price is only $1, and it has locations scattered at thousands of convenient locations that its customers already go to, like 7-11, CVS Pharmacies, McDonald’s, and other common local community retailers.
Unlike Blockbuster which has a significantly higher operating cost for its brick and mortar stores, Redbox has a small operating cost for its POS rental boxes which they say allow them to offer such a low price. Mitch Lowe also said that the ease of renting without having to sign up for a membership is appealing to a growing population trying to save time and money.
No plans have been revealed yet on the prices or plan Redbox intends to offer, though they expect to launch service sometime this summer and allow people to pay to view without having to sign up like at Netflix.