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Why are consumers so willing to rent from Redbox?
How was Redbox able to overcome some of its earliest challenges?
What are some recommendations for ways that Redbox can maintain its high market share?
Redbox is one of the top video rental firms in the United States, but its road to success has not been easy. Redbox started out by identifying a need. It recognized that consumers could not often find the movies they wanted in convenient locations. But like all good ideas, Redbox required funding to get started, and banks were not willing to lend them money. Redbox got beyond this barrier by partnering with Coinstar, which already had partnerships with different retailers.
The company was initially cautious in building its business model. It started slow to test whether the kiosks could be profitable. It would take some time before it would become profitable, but Redbox has been able to successfully meet consumer needs, such as their need for convenience. Retailers like Redbox because the kiosks help attract consumers interested in renting movies, and, once inside the store, they may be willing to purchase additional products. To maintain its competitive edge, however, Redbox must be constantly vigilant against competitors like Netflix and online streaming.
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