Wednesday, June 24, 2009

Redbox

[With our Global Strategy course this semester, I'm going to highlight a bunch of interesting business models and strategies]

This concept was created by McDonalds. They didn't put the boxes in their stores, but rather in grocery stores. I would have loved to have been a fly on the wall when thise discussion happened. Why not in McDonalds restaurants? Do they miss out on too many people shopping after 6-7pm (4-9pm is the prime time for renting movies).

Also love that they are filling a temporary niche, until streaming becomes the primary viewing choice. Redbox could be gone in 5 years. Redbox could be the equivalent to dial-in Internet in 5 years (which still exist). But in the interim, they are capitalizing on a gap in the market between the collapse of Blockbuster and the impending rise of streaming video.
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