Companies looking to offer movie and TV content to viewers directly in the living room have multiple viable options these days. As DVD sales decline, the obvious choice is streaming content via Web-connected electronics, set-top boxes, and game consoles, even though some companies struggle to find ways to expand their reach.
The ideal partnership, according to one recent analyst, would be based on Amazon digital rentals and Redbox physical DVD rentals. Redbox faces pressure from Netflix, Amazon, Blockbuster, and every other company looking to provide movies and DVD rentals for consumers.
To make matters worse for Redbox, Blockbuster Express kiosks are gaining new attention from media and users. This new battle has led Redbox to look towards video game rentals, streaming services, and other new business opportunities for market longevity.
The Redbox and Blockbuster Express kiosk battle is expected to continue as both companies look to attract new users in a very familiar business sector.
"While we do not believe Redbox necessarily needs a digital strategy to be successful, we believe it has become necessary to offset concerns about the demise of DVDs and obtain a more appropriate valuation multiple," said Eric Wold, Merriman Curham Ford analyst, in a recent research note.
As Redbox, Amazon, and others battle Netflix in the streaming and physical rental markets, this could be a very dangerous duo. Redbox remains the number 1 rental kiosk service, but has struggled to try and enter the streaming space. Netflix has offered streaming-only service in Canada, and is rumored to begin a similar service in the United States.
Instead of entering a market dominated by Netflix, Amazon, and other established competitors, the proposed partnership could give Redbox an immediate impact in the streaming market.
As Redbox sees its discs costs decline while rivals close down, the company will continue to work with movie studios and new partners. Redbox has been forced into 28-day window rental agreements with studios, but will still look to expand from DVD rentals.
Do you think a Redbox-Amazon partnership would be good?
