Redbox Expanding as USPS Changes Predicted to Hurt Netflix

Sections: Movies

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Redbox took 45% of the physical rental market in 2012, up 7.5% over the same time in 2011. With the USPS ending Saturday mail delivery (barring a miracle on the part of Congress), Netflix’s share of the physical is likely to drop dramatically. Further causing pain for Netflix will be the fact that the $8/month subsciption fee to Redbox will include four disc rentals at any kiosk. And speaking of the kiosks, new machine manufactured will have extended capacity, and standalone units are expected to increase by 80 discs each in the coming year. Blu-ray is also a big part of Redbox’s future, with a 20% jump in 2012 in rental rates.

I think we’ve all faced the fact that the video store, outside of specialty shops. is pretty much a dead beast. Both Netflix and Redbox seem confident that their streaming services will satisfy the depth of catalog issues that kiosks face, but how long can the $8/month price stand? With the backing of Verizon, Redbox’s streaming service is certainly going to have some deep pockets, as well as leverage for content, but Netflix has been getting really aggressive in locking in titles for the future, as well as commissioning original and revival series. Which path will work? Maybe both, but I know I’ll declare the winner in my book to be the first company that revives Firefly with a guaranteed five-season order.

Hey, they brought back Arrested Development. It could happen!

Via: [Home Media Magazine]

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