Redbox Dominating DVD Rental Market

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Redbox Takes Over Rentals

In case you have noticed, Redbox is everywhere. In just a few short years, the little red boxes parked outside just about every grocery or drug store have helped put major movie rental chains such as Blockbuster and Hollywood Video practically out of business. The red boxes, which are packed with the latest and greatest movies on DVD, have become the go-to source for film buffs who prefer a disc rather than streaming their movies online.

So how well is Redbox doing? Apparently, pretty well. According to a recent article in Variety, Redbox now makes up half of the DVD rental market in the U.S. In all, the movie rental company has 44,000 kiosks across 36,000 locations and has a 38% stake in all movie rentals, including video-on-demand (VOD).

Although experts predict that physical home entertainment revenue will drop 28% over the next four years from $12.2 billion to $8.7 billion by 2018, the company is currently enjoying a “content advantage” over cable and streaming services by offering movies nine to 10 months earlier. Additionally, the company’s relationship with major film studios has improved because Redbox kiosks bring in more money for the studios per transaction than pay TV or streaming video. By the end of the year, Redbox is expected to sign contract extensions with three of these studios. For now, it doesn’t look like the company is going away anytime soon.

Poll of the day: Do you rent from Redbox or do you prefer VOD or streaming videos online?

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I am a huge fan of Redbox! Just wish I would've come up with the idea.