DVDfan

Redbox: New Video Rental Competition for Blockbuster and Netflix

svosavvy is another cheap customer that Netflix gets, a typical low margin customer. Make sure you stay with NFLX, don't come back to Blockbuster. Cancel everything in your house, watch everything on your PC !! You should long MSFT or APPL instead.

Redbox: New Video Rental Competition for Blockbuster and Netflix

Redbox revenue is estimated to be between $250 to $270 million in 2008. I am not sure where BBI's Kiosks are going to be located, but I suspect it will be able to help reduce the labor cost at each stores where the Kiosks are installed. Again, BBI is going toward the right direction as far as what I can see. Another KIOSK player is DVDPlay ($1.49 per rental night) with just 1,400 kiosks @ Safeway and they are adding 1,800 more. Redbox has more than 8,000 locations. Blockbuster's annual revenue is more than 5 Billions with a "B" !!!

"Oldtrains" definately either owns NFLX or works for Netflix. How are you supposed to know what to type & search on Netflix if you don't check the new movie releases List from Yahoo or Blockbuster's websites huh? Don't try to lower your intelligence level just to make excuses for NFLX, they are very shameful from hiding the new DVD releases from customers. *I had Netflix for 5 years until I got really fed up by their new website designed to hide the new releases earlier this year. I believe some new subscribers recently gained by Netflix will cancel sooner or later. My HD cable plays free movies in much better reolutions than Roku or internet streaming from Netflix. With the rapid increase in HDTV adaptation, the movie streaming from Netflix will soon become an eye sore (or your brain can automatically adjust to low resolution and still call it "fabulous").

Motley Fool's articles have been classified as "Noises" from my past investment experience, it is quite annoying but my "Noise Filter" is quite strong now. Just read what the fools/morons wrote about "SIRT" and see how much the stock price ended up after the buy out.

Redbox: New Video Rental Competition for Blockbuster and Netflix

svosavvy just confirmed that Netflix get pretty much the lower end of the market with lower expectation (most likely lower margin as well). If the online movie streaming is considered as fabulous and you don't mind watching OldFlix, then Netflix is definately for you!! The one that provides the most value will win the most demanding customer who are willing to pay more for good services & values. I am not saying NFLX won't be the one, but I find it very hard to believe if their main business strategy is to HIDE their newest movie release from it's very own customers (shame on Netflix!!). Restriction on in store exchange is still better than no store at all, think about it!! Good luck to your NFLX shares.

Redbox: New Video Rental Competition for Blockbuster and Netflix

Forgot to mention that I am still bullish about Blockbuster for the long run. Even though they are in a temporary setback, but the company is going toward the right direction and the emphasis in providing convenience and value to their customers. Netflix pathetically hides ALL the latest movie releases from it's website and keep promoting "OldFlix" from it's website, I canceled Netflix after getting tired of looking for new releases from other website only to find out the status of those new DVDs as "Long Wait" or "Very long Wait" from Netflix. Netflix seems to evolve to "OldFLix" (the junkie Roku's low quality streaming seems to confirm that), and now "NoFLix" with the website failure. Blockbuster should have no problem raising more money to fight this war as they are in a much stronger position with physical brick & mortar stores in providing the Convenience to the customers in a TIMELY manner. This is exactly why I keep my brokerage account with Schwab (office within 5 minutes from my house or office) and canceled E-Trade 8 yrs ago. Timing & convenience are way more important to me.

Redbox: New Video Rental Competition for Blockbuster and Netflix

After using Redbox for more than 2 months, I found the following problem:
(1) Kiosk malfunction: could not accept DVD return, I had to burn more gas to find another kiosk and to make it worse I was on the way to work. (and no, I don't have time to to return to the Kiosk later on that extremely busy work day. return dead line is 9pm or another $1/night).
(2) Kiosk malfunction again: DVD was returned to the Kiosk, taken in but not recorded. I found out by receiving a $27+ bill from one rental. Redbox refunded it and acknowledged the DVD was retrieved later by a technician. However, I don't like the late finding especially after I already received the false penalty bill.
(3) If I forget to check Kiosk inventory online, the chance is the DVD is not available at the specific Kiosk I went to. Especially the new DVD release or hot titles.
(4) Long line of customers looking for the DVD that is not available from the Kiosk. This is a time waster. Instead of having a fixed movie posters display, they should consider a real time monitor that shows the movie titles available from that specific Kiosk, let people know what titles are sold out from the Kiosk to avoid wasting people's time especially when the Kiosk itself does not provide very fast transactions.
(5) indecisive customers (another time waster) in the front of the line. I wish they can separate the movie browsing activities (by a new curious customer) from the real transaction (DVD return, pick up ..etc by existing customer).
(6) I believe McDonalds now own the majority share of 51%, not Coinstar. Please feel free to correct me if I am wrong.

To me, Redbox fits the market well as a temporary solution before Video On Demand becomes main stream. However, it won't have a great potential for the long run. That's probably what caused the delay in IPO. Redbox's days will be over when I am able to buy a VuDu (vudu.com) box for less than $99 and rent new released movies for $1 per night without leaving my house, and perhaps the latest theatrical movie release straight from the box.