MONEY-SAVING MOMENT: Redbox has a couple of new initiatives designed to counter a midlife market slump that’s eaten away at the revenue of the $1 DVD kiosk chain.
After going great guns for a number of years, Redbox is now facing competition from the wide availability of video for online streaming and from the threat of Blockbuster Express. The latter uses a business model that makes new movies available almost immediately, while Redbox typically hangs back for 28 days before circulating new titles.
Both factors have meant that traffic at Redbox kiosks has slowed. So now the company is testing out 2 new strategies, the latter only available at a little more than half of its locations around the country:
- Blu-ray movie rentals for $1.50. Depending on the title, it could be worth the extra 50 cents!
- Video game rentals for $2 a night. This gives you a “try before you buy” option instead of shelling out $40 or $50 for a new game that might not be fun to play.
(Editor’s note: Of course, don’t forget about your local library for free DVD and VHS rentals!)