His service is available on hundreds of Web-connected TVs, phones, video game consoles, and set-top boxes. As for price, none of Netflix's competitors can offer as much content for as little money--although Amazon is getting closer.
Netflix's Achilles' heel is its overabundance of dated titles. A subscriber can grow tired fairly quickly of the company's streaming selection. Nonetheless, I doubt that Verizon and Redbox will be able to match Netflix's selection for as little money any time soon. It's true that the major studios and the producers of popular TV shows want to see more competitors enter the streaming sector. What they don't want is for these competitors to offer popular shows and films for what Netflix charges.
As of this month, Netflix can offer relatively newer titles from only one of the six major Hollywood studios Paramount. Meanwhile, the studios are trying to get Web video services to offer streaming movies for sale. The problem for Netflix challengers, the ones who have tried offering movies in this way, is that they have struggled to find an audience.
Has Netflix already got us hooked on the company's brand of subscription viewing? It's probably too early to determine that. What we do know is that Redbox managers seem resolved to seize control of what remains of the DVD-rental sector. And Hastings appears satisfied to let them have it. Be respectful, keep it civil and stay on topic.
We delete comments that violate our policy , which we encourage you to read. Discussion threads can be closed at any time at our discretion. Greg Sandoval. Redbox will bolster its movie-kiosk business by acquiring Blockbuster Express. Redbox NCR is a company that specializes in automatic teller machines and retail kiosks. At the same Blockbuster showed another factor responsible for its demise, that of its tendency to be a copycat rather than an innovator.
Previously the company had attempted to copy the Netflix mail-out concept as an enhancement to its grand fleet of stores. Obviously this never really worked out. While pretty much a blue Redbox look-a-like, Blockbuster Express never really took off, as had the Redbox chain. Redbox being first, had gained the advantage of placement at many of the most desirable national chains. Strategically, Blockbuster Express proved to be myopic. Partnering with several regionally admired chains such as Publix, Blockbuster Express machines were often at a disadvantage.
While these chains were well shopped, Express machines were often located inside stores and thus were unavailable after closing hours. To make matters worse these closing hours varied by day and location. Soon after commencing operations, Blockbuster Express began using price-tiers. The tiers were based on the recent release dates of new movies, some of which were short-term exclusives, under contract to Blockbuster.
Blockbuster worked off contracts with Hollywood studios to preempt competitors from having first dibs on new studio releases. Blockbuster happily passed the costs of these contracts onto its public. While competitors resented these deals, Redbox sat back and enjoyed the price differentials which Blockbuster haphazardly employed. Many of these releases were not under the exclusive contract arrangement and could be obtained at a Redbox for a dollar while a nearby Blockbuster Express charged two to three times more.
This quickly diminished the Blockbuster Express reputation along with the Blockbuster brand. Finally in February, it was announced that Redbox would acquire Blockbuster Express and all of its existing machines. The retailer currently boasts over 43, locations and is growing.
As an add-on, video games have become a vital part of its small box revenues. And it even offers series produced by the likes of Netflix. Currently, the company is exploring a streaming video service through Verizon Wireless, called Redbox Instant. Last year Redbox unveiled a plan to offer tickets to concerts and sporting events to compete with more expensive services such as Ticketmaster. The service was planned to be tested in limited markets.
Recently Redbox announced that its combined rentals of video products and games hit a record level during the quarter ending September
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