Movie rental kiosk operator Redbox is now altering its operations to include Blu-ray movies, video games and digital downloads, as the company attempts to adjust to increased competition from Blockbuster and new competitors in the rental kiosk market.
Redbox plans to test the online distribution rental waters utilizing CinemaNow as a partner. Frequent Redbox subscribers will also have the chance to test out pre-paid movie rental packages, but it’s unknown how many subscribers will be included during testing.
“We are testing a partnership to look at digital opportunities where a consumer can come in and prepay on a monthly basis, and they get X number of [packaged media rentals],” Redbox CEO Paul Davis said during an investor meeting. “Then [they get] a digital download [rental] at a discount or free price.”
The price of online movie downloads remains relatively high — a trend that will continue until more companies begin to offer content — but streaming movie rentals have grown in popularity. Netflix has seen great success with its streaming movie catalog, which is accessible through desktop computers, Microsoft’s Xbox 360, Roku’s players and several standalone Blu-ray players.
Expanding its operations makes perfect sense for Redbox, as the company is facing stiff competition from Blockbuster and several new competitors. Some Redbox competitors even offer the ability to load movies on to a USB flash drive, as well as other innovative distribution methods.
Moving forward, Redbox will continue to put focus on expanding its rental kiosk base, as the company said it’s prepared to roll out 10,000 new kiosks per year.
Have you rented movies from a DVD rental kiosk? If so, what are your experiences? Are you willing to rent again?