Redbox: Competing in the Movie Rental Market
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Trouble for Redbox?
Though 2009 was a great year for Redbox with revenues of US$ 773.5 million at an increase of 99.1% over 2008 and rentals of about 365 million DVDs, the company was not without its share of problems...
According to analysts, Redbox brought into the business a new channel of product delivery. It competed both against traditional brick and mortar stores such as Blockbuster and against online retailers such as Netflix...
With experts predicting that there was space in the market for 60,000 DVD rental kiosks and that sales would touch US$2 billion by 2014 , Redbox was already a quarter of the way there with around 24,000 kiosks as of September 2010...
Exhibit I: A Brief Note on Kiosks
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