I love RED BOX!

[hakrjak]

Can I just say that I absolutely LOVE the idea of Redbox.com?

I only wish I would have thought of it first....

I'm talking about the Red Box video rental kiosks you see outside of McDonalds and now in a lot of grocery stores, etc....

I can go online and pick movies, check availability for the Redbox in my neighborhood, etc.. And anything I rent is only $1.00 a night... Talk about the perfect low maint business that is kicking Blockbuster and Netflix butt, and is providing a major service to people like me that are absolutely in love with the concept!

I wonder what other businesses could be converted to employee-less kiosks, in order to kill the competition? Hmmmmmmmm..........

- Hakrjak

 

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[AroundTheWorld]

automation is definately something we look for.

In the monthly meeting we had this week, we talked about and fine tuned the long term plan and direction with a new criteria: automation and/or mail box money.

We had some items listed in the long term hold plan that are now going to be eliminated because they don't meet the automation criteria.

 

[DeletedUser394]

We have a similar system here in Montreal called "Dollar Cinemas" http://www.dollarcinema.ca/

I've never actually been there to either see or rent movies, but these establishments seem to spread like wildfire. (There are at least ten in the city).

 

[hakrjak]

It's cheaper than any of the rental stores, so I just go straight to redbox now... And before I leave the house I pull up their web site to check availability -- so no more getting down there (Like blockbuster) only to find out that the movie I want is sold out! Grrrrrrrrrrrr, I hate that.

When I'm done, if Iget it back to the box before 7 the next day (And I can return to any box anywhere) -- it's only $1 buck. If I don't return it on time, it adds just a $1 buck a day, no late fees, etc... At 25 days the charges cease and I own the movie.

Maybe 1 for Game machine or PC software would take off? Where you could buy or rent copies of popular games and software?

- Hakrjak

 

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[Redshft]

Just got one in the new Harris Teeter up the road. I've seen it before but never knew how it worked til the other day when I stopped to check it out. Seems like a solid concept, I have a couple of friends that use it. I'll probably give it a try this week.

 

[MJ DeMarco]

I used RedBox for the first time this weekend. What a great system with complete automation. It was really easy and convenient. The key to making it work for you is to return immediately; the profit in the business model is derived under the assumption that you will not return the movie in 24 hours.

Also, this service has an endangered business model as internet downloads will put it into extinction within 2-5 years.

Nonetheless, I will use the service again!

 

[lightning]

How have I never heard of this thing!! What a great idea!

I agree that it will probably be obselete within a few years as "On-Demand" TV gets easier and cheaper, but what a convenience now!

 

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[Bilgefisher]

I used RedBox for the first time this weekend. What a great system with complete automation. It was really easy and convenient. The key to making it work for you is to return immediately; the profit in the business model is derived under the assumption that you will not return the movie in 24 hours.

Also, this service has an endangered business model as internet downloads will put it into extinction within 2-5 years.

Nonetheless, I will use the service again!

The fact that I can rent a movie for cheaper then 15 years ago makes it very worth it. besides how often do you watch a rented movie more then once?

 

[camski]

The fact that I can rent a movie for cheaper then 15 years ago makes it very worth it. besides how often do you watch a rented movie more then once?

A question along those lines that I have often wondered is how many times does a person watch a dvd that they own? I know of people who run out and buy a dvd the day that walmart first has it available. they own literally hundreds of dvds (and vhs tapes, for that matter). But I know they have probably only watched them at most a couple of times each.
Myself I have never been a big fan of buying a movie just because I know that i can go rent it any time I want to see it, and still not clutter up my house. And with the future on movie downloads, getting a movie will be even easier. This might seem controversial but I have noticed that many of the people who tend to "collect" these movies come from a lower socioeconomic background, and dont really look at it like a waste of money and space.
My whole point being that I think buying dvd's is a waste of money.
** Major note here. I would exclude childrens programming dvd's because I knwo people definitely watch those more than once or twice*****

 

[MJ DeMarco]

A question along those lines that I have often wondered is how many times does a person watch a dvd that they own? I know of people who run out and buy a dvd the day that walmart first has it available. they own literally hundreds of dvds (and vhs tapes, for that matter). But I know they have probably only watched them at most a couple of times each.
Myself I have never been a big fan of buying a movie just because I know that i can go rent it any time I want to see it, and still not clutter up my house. And with the future on movie downloads, getting a movie will be even easier. This might seem controversial but I have noticed that many of the people who tend to "collect" these movies come from a lower socioeconomic background, and dont really look at it like a waste of money and space.
My whole point being that I think buying dvd's is a waste of money.
** Major note here. I would exclude childrens programming dvd's because I knwo people definitely watch those more than once or twice*****

My own mother has a closet full of old VHS tapes. I used to bag on her about the financial imprudence of buying movies but find it a lost-cause now ... she enjoys it like its some kind of hobby ... nonetheless, I couldn't agree with you more.

 

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[mtnman]

My whole point being that I think buying dvd's is a waste of money.

nonetheless, I couldn't agree with you more.

Ah, there's a flaw in your opinions....the FTM B & P DVD. :jiggy:

 

[kurtyordy]

Ah, there's a flaw in your opinions....the FTM B & P DVD. :jiggy:

I waiting to rent it on netflix:smxB:

 

[bashir26]

I saw this kind of system 16 years ago

 

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[hakrjak]

I can see this really hurting Blockbuster and some of the other rental businesses, essentially stealing marketshare away because this is cheaper, better, faster.

What other businesses can you think of that could have their market share stolen away by such a cheaper, better, faster, *automated* service?

Cheers,

- Hakrjak:coffee:

 

[Talkintoy]

This was a great idea! I hate Blockbuster after they raised thier monthly price for online and claimed that they sent email to everyone stating they're raising the price. If you don't reply within certain time they'll go ahead and raise the price. I never got any emails from them! I thought it was a reason for them to just kick the price higher.

 

[TaxGuy]

wow if only these would've been around when my dad had his vending business....

then again, he should've came up w/ the idea :fryingpan:

moving forward, a fastlane concept from this is not only figuring out an automated service similar to this, but finding another aspect of life that can be simplified and will make the big box co's sweat when you're operating at much lower costs and pulling wicked profits :smxB:

off the top of my head there's nothing, but I'm glad that I take public transportation and can view others to get an idea of what part of their life I can make easier and fulfill a need... in this case, nobody really "needs" convenient video service, but Redbox's creator just came up with something so innovative that ppl ate it up!

 

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[MJ DeMarco]

RedBox probably will do quite well in recessionary times. Even my mother, whom I written about above, has started going to RedBox and does about 3 movies per week. She loves that 4 movies cost the same as 1 Blockbuster. If the older generation can do it, anyone can!

 

[hakrjak]

I'm not sure how they're able to make a profit with their current business model and wonder if they are just trying to establish a customer base before they raise their prices?

Surely it must cost them more than they are earning, if they have to pay $100 per movie or whatever, then they rent it out, pay electricity, service costs, web site costs, IT costs, etc!?

- Hakrjak

 

[EasyMoney_in_NC]

I've been looking at buying into their stock (and I don't "do" stocks). I think its a great idea, and am not sure about the extinction comment unless the download ability allows the saving of the movie, one still has to get it to their TV otherwise watch it on their PC (I guess unless you buy equipment to filter through to the tube....which brings its own hassles).

The HBO's and Showtime's are just about useless anymore for any good movies, unless you want to pay extra through on demand, you're watching old movies that everyone has seen a hundred times.

I think the Redbox idea has lots of potential. CD's still sell (although I know in greatly reduced numbers relative to years ago) and I think this will sustain the long haul. Everyone I know that's used it, loves it (evidenced by comments here too!).
For those that don't know, the business is half owned by the McDonalds Corp., they must see something in it?

 

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[hakrjak]

I'll bet McDonalds took a 50% stock position simply for the rights to put the Red Box at every one of their locations. Probably didn't cost them a dime, and totally worth it for the founders of Red Box to get that kind of exposure and instant brand recognition and trust!

- Hakrjak

 

[servicefly]

I'd say the future is definitely online downloads such as the DivX technology proves now. I prefer downloading movies online then attaching them to my HDTV. The combination of downloading and streaming make it almost instantaneous. I won't even get cable or satellite anymore. Of course, some of the websites are on the fringe of legal; however, most are not. Hulu.com, ABC.com (Lost), joost.com, etc.

In fact the technology to play games better than Xbox and Playstation 3 over the Web is available now, just really expensive. It would cost the consumer $99 per month at current technology costs today. Not to mention the Internet connection has to be high bandwidth and reliable, to which no provider in the USA are reliable yet.

Sidenote: Anyone think Verizon's Fios is any faster than high broadband DSL? It's not because the hubs are built and wired the same and still sharing the connection with 1,000's of families. Great marketing though, and in the future it will probably be faster if everything goes fiber optic. Unfortunately for Verizon, global wide area network technology will kill any other Web connection in the near future.

 

[biophase]

I'm not sure how they're able to make a profit with their current business model and wonder if they are just trying to establish a customer base before they raise their prices?

Surely it must cost them more than they are earning, if they have to pay $100 per movie or whatever, then they rent it out, pay electricity, service costs, web site costs, IT costs, etc!?

- Hakrjak

The biggest problem with Redbox is time. If you run it to return your DVD and there's a line of 2 people waiting to either get a DVD or return one, you will spend 10-15 minutes there.

As to how they make money? I once stood behind a guy who returned 2 movies and paid $22 in late fees. I've also noticed that more and more movies are "OUT" whenever I scroll through their selections. Must mean more people are using it or just not returning movies.

 

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[hakrjak]

Yeh, if you don't return a move, it costs you $1 per day until you return it, but then you own it after a certain number of days I believe... Like 28?

I wonder what they are paying for the DVD's, because I know when I looked into opening a video rental shop like 10 years ago, you had to pay $100 per movie if you planned to rent them out, so it would take you literally months or a year to recoup your costs to buy the movies. Maybe things are cheaper now?

- Hakrjak

 

[TaxGuy]

I'd imagine it went down now that they have the "no more late fees" and even Blockbuster has the, "if it's more than 3 days late, you pay the price of the movie". Not sure if it was ever an unlimited fine, a la the episode of Seinfeld where he had the $10k+ fine for a late book, or just always "late this long and you pay for it".

either way, that's just extortion asking video store owners, especially small-time ones, to pay $100/movie when I'm sure Blockbuster and Hollywood both get pretty good deals for buying in bulk... I could see asking more than retail though to pull some type of profit.

 

[RealOG]

My neighbor run a video production business. We have chatted over drinks and he didnt get me specifics, but he used to supply Blockbuster. He had said they are so aggressive on their negotiation you can rarely make more than cost on the deal. Not sure what that comes to but I assume its pretty low. It did however allow him to bring his average cost down quite a bit, which is why people bid on this business.

He no longer supplies the mainstream and has moved to more niche videos with higher margins. Some of his stuff is pretty "obscure", his catalogs get sent to Danielle and I by accident sometimes...

 

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[biophase]

I wonder what they are paying for the DVD's, because I know when I looked into opening a video rental shop like 10 years ago, you had to pay $100 per movie if you planned to rent them out - Hakrjak

A few months ago I walked into a Hollywood video and was going to rent the movie Sunshine for $3.99. I passed the Previewed DVD display and all their DVDs were 50% off. I thumbed through it and ended up buying the movie for $1.99. Something is seriously wrong with their business model!

 

[servicefly]

I know that Netflix pays for a distribution license. They buy large lots of DVD,s and burn the videos onto them, which means they pay for a digital right to distribute. If Redbox modified their model to hold 1,000 blank DVD's in each box and burned them in the box itself, they could replenish their supply. All the equipment necessary would git in the box. Of course they can't burn them right at the order time, but they could have 20 or so of each pre-burned and burn new ones as each gets rented. Maybe this is what they do now, it would make their revenue model profitable.

 

[MJ DeMarco]

Good news for RedBox ... more selection to come!
MarketWatch.com Story

 

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[ATL_JB]

My best friend works as one of the lead manufacturing mangers on the Redbox product. The company is based out Canada, but the Redbox itself is manufactured out of NC. The company is currently in the development and trail stages of entering new target markets. There are targeting women and children with their new products. Someone mentioned game and pc software as a potential area to target. From my understanding they all ready have some units either in the testing stages at the manufacturing facility or in the field at specific locations testing the demand for this service. They are also in the process of implementing a box that supplies makeup, adult toys (for women), and etc. The company owner and CEO meet in NC once a month to go over their current strategies and designs.

 

[G_Alexander]

RedBox sues 20th century Fox.

Redbox sues 20th Century Fox in DVD dispute - Yahoo! News--

It appears that some production companies are not happy with RedBox cutting into their sales. They are now trying to delay the release of DVDs to RedBox by 30 to 45 days.

RedBox should win this one. Let's hope so anyway, what would we do without our $1.00 rentals!!???!

G. Alexander