Now link this with the strategy of Redbox, who is opening kiosks in various retailer shops. So for an average movie renter, a visit to supermarket fulfills both grocery shopping and his/her entertainment needs can be very appealing. When we look at the impact of this for Netflix’s business, we see that out of may methods of Netflix movie rental, Redbox is raising a competition for its more core business so far – DVDs in mail. Now Netflix is moving away from this core, it is going forward to future, where Redhox is addressing common folks need to entertainment in a way that can impact Netflix revenue for the near future.
Another idea for Redbox to improve its business line would be to work with retailers to share rewards program with them. So if a customer makes $10 or $20 or more worth of purchase, how about the store offering a free move from Redbox? I am sure they can attract many customers to keep visiting their store based on this plan.