Jeff wonders if Netflix should partner with a DVD kiosk vendor: Do you see a benefit in Amazon or Netflix teaming up with an Automated DVD Kiosk company such as redbox or The New Release. Basically, this partnership would allow Netflix to offer its newest releases to customers at kiosks (much like Blockbuster). To me, the synergy between an online DVD rental company and an Automated Kiosk company is too strong too ignore.
Would you leave your house to visit a DVD kiosk to exchange or rent movies?
Would you leave your house to visit a DVD kiosk to exchange or rent movies?
Nope. That's why I have NetFlix, because the movies are delivered to me and return them via my mailbox. I'm not concerned with trying to watch the maximum possible number of movies per month. I watch them on my terms and return them when I'm ready. I certainly see the possible strategic business advantages, but it wouldn't do anything for me.
Posted by: cmmsml | November 14, 2006 at 03:56 PM
Hell yes!! Even if I could simply drop my movie off at the box and have it instantly register at my local netflix shipping center. This would be especially great on a sunday.
I still maintain an account at my local crappy video store because we tend to run out of movies on the weekends.
I actually thought of this idea before I ever heard of redbox and thought it would be a great replacement for video stores and a great way for netflix to compete with blockbuster, especially now that they have that new return program. The overhead would be a lot lower than a normal store and customers get instant gratification.
Posted by: Thomas Paine | November 14, 2006 at 06:09 PM
Look at it from the other angle: Why would the Automated DVD Kiosk companies partner with Netflix? What's the value add that the kiosks get from Netflix that they can't get on their own?
Posted by: Edward R Murrow | November 14, 2006 at 08:04 PM
"What's the value add that the kiosks get from Netflix that they can't get on their own?"
There's more to consider than a partnership. Netflix or someone else might BUY Redbox out if it was in their interest. There are a lot of people who won't mind getting DVDs from a kiosk at the grocery, gas station, pharmacy, or fast food restaurant. It would be best to buy while Redbox was still small, instead of waiting until they have thousands of kiosks.
Posted by: type-cast | November 15, 2006 at 01:31 AM
"Nope. That's why I have NetFlix, because the movies are delivered to me and return them via my mailbox."
Amen, brutha!
I laugh everytime I see the BBO commercial that sells their service as better because you can drop off movies at the store.
Ummm, that's how it's been done since VHS.
The whole reason I joined Netflix was to save the hassle - otherwise, I'd still be using my memberships to local Brick & Mortar places.
The idea of DVD's by mail that can be returned in person seems to contradict the whole concept in the first place.
In this case, all that has changed are the fees associated with renting. Used to be per movie and you had to physically visit the store. Now it's per month and you still physically visit the store.
Basically Blockbuster was forced to change their entire business model because of the service Netflix offered. That's pretty huge.
Posted by: smgpugfaw | November 15, 2006 at 02:03 AM
"What's the value add that the kiosks get from Netflix that they can't get on their own?"
I think that the value would be that Netflix and Redbox both offer complimentary services. One on hand Netflix could use a service like Redbox to satisfy their highest use customers. This would bring down their high transactional costs that are tied to mailing back and forth. It would also provide instant gratification for users who do want to rent a quick flick. Add to this that by it's very nature Redbox is limited to the top hits and you've got new releases that might normally be more difficult to get.
For the kiosk company they could earn revenue sharing from the deal or they could offer their own customers access to longtail content that they so desperately lack.
I think that there is a very compelling business model to be made for a kiosk operator and a DVD by mail service to combine forces, but I would agree that I think it would be more likely to see Redbox introduce their own by mail program, then it would be to see a partnership.
Currently, I don't believe that any DVD kiosk provider has a large enough footprint to handle Netflix's national prescence and for Netflix to build their own distribution network on the eve of their VOD effort seems unlikely to me.
Wishful thinking and a compelling alternative for consumers, but still unlikely in my mind. Hopefully, I'll be wrong on this one though, and we'll see a legitimate all you can watch DVD program offered by someone at some point.
Posted by: Davis Freeberg | November 15, 2006 at 02:30 AM
"The idea of DVD's by mail that can be returned in person seems to contradict the whole concept in the first place."
No, it doesn't contradict it, because you're free to return DVDs by mail if you want. You don't have to go to the store. It's a perk - which Netflix, of course, does not offer you at all. Blockbuster will be glad you opt out of in-store returns, as you are saving $3 on each return. FACT: Blockbuster gives us MORE CHOICE and MORE VALUE than Netflix. They may discontinue this deal in the long run, but I doubt it. People hated printing those damned coupons, and it was ecologically disastrous. Total Access saves us the waste of 6 million coupons being printed each month. You can go to the mail box if you want, waste your time waiting for the next movie empty-handed, but I'm glad to have this new choice.
Posted by: type-cast | November 15, 2006 at 03:24 AM
Never heard of or seen this Redbox thing before, but they should do something. While I agree with some that I'd rather not leave my house to send/receive the DVDs, once a week or so I'd like the ability to take my returns somewhere for some instant gratification.
I'm using Netflix and BBO right now and so far I like Netflix much better, but BBO allows me to get a little more DVDs while still being slower because of the in-store returns.
A deal with TiVo, of course, would be the holy grail.
Posted by: junkfood | November 15, 2006 at 11:32 AM
"You can go to the mail box if you want, waste your time waiting for the next movie empty-handed..."
I am not wasting my time if I don't have a Netflix movie at home.
For as long as I've been reading this site, there have people here telling other people how to use their Netflix account. Apparently (according to many posters in the past), every moment of my day should somehow involve receiving, opening, watching or returning Netflix movies or else I'm completely wasting my time and/or my money.
Netflix was founded on the idea that people should be able to watch and return movies when they want. I do think Netflix should be continuously investigating new options and services. But, I don't have to use them and I certainly don't have to use my Netflix account in the same manner as others to enjoy it. My time, my money, my Netflix account, my movies, my way. Thank you.
Posted by: cmmsml | November 15, 2006 at 11:36 AM
"I am not wasting my time if I don't have a Netflix movie at home."
If you want a movie to watch you watched the last one, then you are left empty-handed for several days. You are on Netflix's schedule, instead of being able to get a movie NOW.
"For as long as I've been reading this site, there have people here telling other people how to use their Netflix account."
Nobody has told you how to user your Netflix account. You are imagining it. What somebody does seem to be saying is that Blockbuster's somehow forcing us to return things to their stores. Netflix also tells us how to use our account, in the form of throtling. If YOU do not want to return movies to the store for a free rental, YOU don't have to. If you want to get movies on Netflix's schedule, instead of your own, by all means Enjoy.
"Netflix was founded on the idea that people should be able to watch and return movies when they want."
Yeah, and they'll send your next title WHEN THEY WANT. Blockbuster lets you get another rental immediately, WHEN YOU WANT. Use your account however you want, but stop telling the rest of us that we're forced to use the in-store returns or that we're somehow less savvy than you for wanting to do so.
Posted by: type-cast | November 16, 2006 at 05:42 AM
"... stop telling the rest of us that we're forced to use the in-store returns or that we're somehow less savvy than you for wanting to do so."
Point out exactly where *I* stated this? I've never told anyone what they should or should not do with their account or movies. I simply stated what I do.
"Nobody has told you how to user your
Netflix account."
Actually, yes people here have. When I responded once that I watch 6 ~ 10 movies per month, a poster went off on a tirade and lectured me on the minimum number of movies I need to rent per month or I'm wasting my money and I should just cancel my account. You stated that its a waste of time if you don't have a Netflix movies at home. Only I am the judge of what is a waste of my time and my money, not you.
Posted by: cmmsml | November 16, 2006 at 09:27 AM
I like redbox because I can go and get a movie when I want it, but I also like netflix because I can rent older movies and t.v. shows. So to me they would make the perfect match!
Posted by: kelsey | March 27, 2008 at 12:33 AM
Yes and probably will. As of now Dec 2009, since Hollywood and Cable companies are targetting Video renters, Redbox and Netflix tie-up will be awsome competition!
Posted by: YES | December 04, 2009 at 03:26 PM