According to Associated Press, the recent increase in the prices of video rentals from Netflix gives competitor Redbox a chance to boost its sales. Despite Netflix’s raising popularity, Redbox representatives believe that the value of one dollar will eventually speak.
It looks like Netflix, the online streaming and video rental giant is making room for other competitors on the market.
“We are very cognizant of the value of the dollar” said Gary Cohen, the senior vice president of marketing and consumer experience of the Redbox video rental company. He wanted to outline the common sense of a price well set. “Redbox is all about simplicity, convenience and value”, he added.
The analysts believe that by rising prices, Netflix has left rising new opportunities for other competitors, like Redbox, Blockbuster and many others. Wedbush Securities analyst Michael Pachter believes, however, that no other than Redbox could take advantage of this situation better. He says that it is expected that the customers will stick to Netflix for online streaming services, while they will look some other place for the video rentals. And when it comes to this, people will look for the most comfortable option possible. Redbox has the country filled with red kiosks where, for just one dollar, you get to pick any movie (concert/ play) you want to see. At present, two-thirds of the U.S. population has a Redbox kiosk within a few-minute drive. Not only that, but Redbox has an offer that customers cannot find at Netflix: video game rentals. With 2 dollars per day, you can choose from a wide range of video games.
The other competitor, Blockbuster has 1,500 service points in all of the U.S. This could not even begin to compare with the Redbox coverage capacity. Its kiosks have doubled in the last two years, settling for a number of 33,300 for the moment.