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Comments

chris

Keep in mind that the users on Mint can only have these expenditures tracked if they use a debit/credit card. If they pay cash at a movie theater, it is not tracked. This could alter the stats.

Brian

I'm considering jumping to Redbox. There's two or three around here. This is because I HAVE HAD GRAN TORINO QUEUED UP FOR A MONTH and it's still in LONG WAIT. Netflix better buy more DVDs or it's GAME OVER.

Perkins Cobb

Another variable is that Netflix is nationwide, while Redbox isn't -- there aren't any in New York City, for instance.

Does anybody have a handy resource indicating how much of the US market Redbox has covered?

tsrblke

@Brian,
Are you perhaps a really heavy user? New movies tend to drop to no wait after about 2-3 weeks for me. (Not that I have them at the top of my Queue anyway.)

Billy

That data seems slightly misleading. The "Dollars spent per purchase" is comparing apples to oranges. One purchase at AMC Theatres ($17.50) would be a ticket, drink, and popcorn, right? One purchase at Netflix ($14.50) is a month-long unlimited subscription. One purchase at Redbox ($3) I guess means you rent 1 movie for 3 nights?

And if I'm reading the data correctly, the "Transactions per User" chart means that in June 2009 the average user rented 3.25 Redbox movies, saw 1.75 films at AMC, and had 1.25 Netflix ACCOUNTS? Again, not the same thing.

I'm a movie lover and I watch a lot of films. What these charts tell me is that the average cost of watching 10 movies is $175 at AMC, $14.50 at Netflix (assuming you have time to watch 10 per month), and $30 at Redbox. I'll stick with my cheap selection of 120,00 movies, not the few dozen that Redbox has at any given time...

Steven

I agree with Billy. I could see potentially using Redbox for a spontaneous rental of a new movie, but definitely not for ongoing needs.

Right now the DVDs I have at home from Netflix are 'Sunshine' from 1927 and the documentary 'Salesman' from 1968. There is absolutely zero chance of getting those movies from Redbox.

To me, using Redbox for movies would be like trying to do a week's worth of grocery shopping in a convenience store. There's just no comparison.

dnl2ba

I'm not sure what they're trying to convey with "% of Mint users using each service in June 08 & 09," considering that the most relevant factor is probably Mint's demographics changing over time.

Mike

Although, considering how bad Netflix is at new releases, the metaphor would be like a grocery store that didn't carry bread or cereal. I think most renters are going to find a way to use both to their strong suits.

Del

Going to the local theater is a thing of the past for my family. The cost is just not worth it anymore. It cost the four of us ~$60.00 for one matinee movie.

Seth

@Perkins Cobb

"Another variable is that Netflix is nationwide, while Redbox isn't -- there aren't any in New York City, for instance.

Huh? There are Redboxes in New York City. In Manhattan and Brooklyn.

Seth

"So it appears that Redbox and Netflix are growing at the expense of video stores."

I think Reed has it right. I think Redbox and Netflix overlap slightly, but have different customer bases. Redbox is another nail in Blockbuster's coffin. It's an annoyance for Netflix, but not much more.

Crow550

LOL Fu*king trolls.

Anyways....Say what you want about Co..Blockbuster. Without them Netflix has that much less competition and that is what makes good deals. So if BB dies our deals on other rental outlets may raise & we lose.

PLB

There is a marketing startegy called "loss leader". An enterprise sells something at a loss to entice buyers to buy other items or to accustom them to your new marketing channel.

I wonder if RedBox actually makes money while it acquires market share and it trains new customers to use its box. BTW, that box is a hell of a piece of technology.

Personaly I use RedBox less and less. When one first appeared in my local supermarket about a year ago I rented very often - two movies at a time at least twice a week. Quite soon I had seen every movie I might ever want to see in that box. A lot of obscure low grade films are still in that local supermarket box a year later. Today I just look at the New Releases. Maybe once a month the box will have something I want to see but that I don't want to wait to come from NetFlix. Watchmen was the last one in this category.

If my experience is typical Redbox is only really succesfull with new customers who soon deplete the slender selection available. If this is so, their growth will soon stop.

Barb

I love the Redbox. I ended Netflix because new movies had a long wait. I have many redboxes near me walking distance (2 blocks is the closest).
Netflix would only get me back if they had a way to return and get a new movie the same day. I guess blockbuster had this, but the Blockbusters here closed.
BTW, I rarely go to the theater anymore in Chicago ($10.50 a movie) unless is it on the IMAX (Harry Potter) or in the burbs (Hangover for $5.50).

rjm

I bet the $3 figure for redbox is an average transactions. Some might turn into purchases, some might keep for 2-3 or more nights but the vast majority are for 1 night.

I have been using redbox to supplement netflix but since I dont drive by one everyday, it often ends up being an extra trip which defeats the purpose of netflix.

The other problem is the last few times I went to rent or return, Im behind people who take 5+ minutes and I hate waiting.

Kind of like Aldi, the grocery store. It used to be good when they first opened. Now, its a 3-4 minute wait everytime I get in line.

I dislike netflix charging an extra $7 for a 4 at a time. Should be $6.

Fred

The studios are scared of anything that keeps them from selling $10 movie tickets and $25 DVDs.

Shawn

@dnl2ba:

'I'm not sure what they're trying to convey with "% of Mint users using each service in June 08 & 09," considering that the most relevant factor is probably Mint's demographics changing over time.'

I totally agree with you dnl2ba. As Mint gets more mainstream, it is natural that the percentages of netflix users will drop some. However, I am a little surprised at how low the percentages are of netflix users in both years (11.8, 8.8). I would have thought the percentage of mint users using netflix would be over 20% since they are a similar demographic.

david

that transactions per graph might be a little misleading, i haven't been in a hollywood or blockbuster in some time, but don't they have 2 & 5 night movies? where everything at redbox is $1 a night. the way NF users post about trying to bring their cost per disk down to pennies, i imagine a lot of redbox users renting a movie fri, bringing it back & picking another up sat, bringing it back. you know, like they've saved money driving back & forth to the kiosk. i dunno, just a thought.

Perkins Cobb

Redbox's website claims there are two locations in Manhattan, and one in Brooklyn. And I went in search of one of the alleged Manhattan boxes, but couldn't find it.

Not a significant market penetration, compared to the accounts of convenient Redboxes posted by commenters from other areas.

Kenneth Schemmel

Netflix takes forever to get new movies! In the Winter I stop Netflix and go to Blockbusters because for about $30 a month I can rent 2 movies a day every day and UNLIKE NETFLIX I CAN GET NEW MOVIES!

kevin

If some of you were to pay attention to the predictability of shipping times, and Netflix consistency, you could have new releases. (E.g. Timing the shipments) I get new releases EVERY TIME I time it right... Otherwise I don't know what to tell you...Netflix has me for life :D

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