Blockbuster seems so 20th century with its brick-house stores. The action is between Netflix and Redbox. Which DVD renting service will you choose?
Many of you have noticed an increasing number of Redbox movie rentals in your neighborhood. The company is implementing an aggressive marketing program and already has 15,000 Redbox locations nationwide.
Even in a small town like Hickory in North Carolina there are at least two Redbox locations in two different sides of one intersection. One is inside a Harris Teeter store and another is outside Walgreens on the opposite side of the street. This little example shows how far Redbox movie rental has gone to meet the customer.
This is a serious challenge to Netflix. While you have to set yourself in a mood to go online and rent a movie, you see the Redbox while you are shopping and it sends a message to your subconsciousness. Hey, let's rent a movie. It's only one dollars per DVD.
Now the question is can Redbox get Netflix subscribers? Will Netflix subscribers give up their subscription and go for Redbox? Time will show.
As for Blockbuster, I think they are behind. Last Friday I went there to to rent few movies. A new loyalty promotion offers for the price of like 4.50 or so to get some free DVDs each week if you take certain number of DVDs. If you agreed you would get one move free that day. So it's like instead of paying for a movie, get the plan and get the movie for free. I asked what's the catch? The guy told me it's a loyalty program.
Will Blockbuster get customers loyal in the long term with plans like this? I am not sure. The management is better further strengthen its online part of the movie renting business.
However, I still believe Redbox has the edge. They are where I am. The save me an extra trip and are very cheap.
Written by Armen Hareyan
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