Redbox to challenge Netflix in online video

Written by Luke Ponio    Tuesday, 20 July 2010 14:58

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Redbox is devising an internet strategy to compete with Netflix. Redbox only has about 200 titles in each of its approximately 24,000 DVD rental kiosks and an internet streaming service would allow them to increase that catalog and attract more business.

Netflix currently has over 100,000 titles available by mail and 20,000 by internet. In order to compete, it is necessary for Redbox to have some type of online presence. President of Redbox, Mitch Lowe, said in an interview with Bloomberg that Redbox is losing business to Netflix as consumers try to find older titles.

Redbox will face stiff competition from not only Netflix, but Apple, Best Buy, Sears, and Wal-Mart too. There is little detail about what Redbox plans to do on the web. Will it go with a subscription plan or pay per view? If Redbox can get online rentals down to their physical disc price of $1 per night it might be on to something.