MONEY-SAVING MOMENT: Redbox is at the center of some big changes that will impact how you get TV or movies.
Redbox has long battled Blockbuster Express (BE) for control of the DVD rental market. While Redbox caps its rental prices at $1.20/night, BE unsuccessfully experimented with a graduated pricing system that went up to $3 per title. After losses in excess of $100 million, BE will now be bought out by Redbox.
So we’re going to what’s basically a monopoly in the DVD rental kiosk marketplace. But on the other hand, Redbox is also adding more competition to another market segment by teaming up with Verizon to compete with Netflix for digital delivery.
This latest move will provide another opportunity for you to put together a poor man’s TV package — using rabbit ears to get over-the-air reception of your local networks and then paying for any additional content you want from Netflix or Amazon Prime or the emerging Redbox/Verizon competitor.
Fortunately, the Redbox/Verizon option will not be limited to Verizon’s service territories for pay TV. This will be a truly national offer.
If you think pay TV means cable, satellite and the local monopoly phone company, there’s a different future coming!