Question

For Redbox, how long would consumers continue to be willing to physically go out and rent a movie or video game from a kiosk? Would the flexibility of Redbox Instant's bundling of digital streaming bundled with credits for renting at kiosk provide the right value proposition to consumers?

Answer 1

Redbox is an international brand locates in the United States of America. The company deals in the rental services of DVDs and videos. The kiosks are available at other retail outlets for better availability of videos. In the current coronavirus pandemic, the consumers do not come out of their homes due to lockdown. The videos that are available at the stores are not attracting any customers. The pandemic has turned the whole world upside down. It has also slowed down the demand of the consumers. The video retail industry has seen a downfall in demand because of the pandemic.

Moreover, due to companies like Netflix and Amazon Prime, the demand for videos at retail outlets has subsequently decreased in many countries. Most of the consumers use mobile phones and Smart TVs to binge-watch on these online platforms. On the other hand, even if the company provides additional discounts or facilities, most consumers' decisions will remain unaffected. It is because Netflix and other internet platforms provide free subscriptions in the beginning. It attracts more customers because these platforms provide all the genres at a single place at a reasonable price. The videotapes at retail outlets are expensive because there are different video CDs for different movies or serials.