Tom Dougherty, CEO – Stealing Share
13 May 2010
The future looks grim for Redbox
Talk about chasing a business model into the ground. Redbox is “testing” a price point of anywhere between a buck and a buck and a half for their video rental kiosks.
Already the king of the DVD rental kiosk market, Redbox recently announced that its 25,000th kiosk has rolled off the assembly line. But even as Redbox consolidates its position and signs deals with Hollywood studios, it’s again tinkering with its famous buck-a-night pricing scheme.
“Everyone that distributes any entertainment medium needs to recognize that its market space is closing.”
The problem with renting a DVD or Blu-Ray disk is that it is nowhere to build a brand today. The physical medium does not matter any more. It does not matter if it’s a CD, DVD, or Blu-Ray disc. It is yesterday’s story.
Everyone that distributes any entertainment medium needs to recognize that its market space is closing. The Redbox kiosk is not as convenient as going absolutely nowhere to receive content through cyberspace.
So listen up. If your brand delivers a physical medium in any form, don’t worry about price point. Worry about cyber-distribution. If your brand manufactures CD, DVD, or Blue-Ray players, find another model because soon we won’t need you at all.
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