Redbox: Disruptive Innovation in DVD Rentals

Case Studies | Cases in Business, Management, Cases | Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR359
Case Length : 14 Pages
Period : 2002-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Redbox Automated Retail / Redbox Automated LLC
Industry : DVD Rentals / Entertainment
Countries : USA

To download Redbox: Disruptive Innovation in DVD Rentals case study (Case Code: BSTR359) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Excerpts Contd...

Background Note

In 2001, McDonald's Corp. (McDonald's) was on the lookout for new business opportunities and its new business development department came up with the concept of using automated kiosks, which it called the Redbox, to offer newly released DVDs on rent at its restaurants...

The Redbox Experience

Redbox's business model was quite simple. A customer could rent a DVD for a day from a kiosk for US$ 1 plus tax. The DVD could be rented at any time during the day, but had to be returned to a Redbox kiosk before 7 PM the next day...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Problems with Movie Studios

However, some major Hollywood movie studios, as well as a few analysts felt that Redbox's low rental charges, and its practice of selling used disks, was not only affecting DVD sales, but also creating a surplus of used DVDs in the market...


Redbox faced competition from other DVD rental kiosks, online video rentals like Netflix, Inc. (Netflix), and brick-and-mortar stores like Blockbuster, Inc. (Blockbuster) and Movie Gallery, Inc...


DVD rental transactions in the US grew by 1.8% between 2007 and 2008, to US$ 2.6 billion. Redbox's market share (which was 1% in 2006 and 2.3% in 2007), increased to 9% in 2008, and stood at 13.8% for the first six months of 2009...


Exhibit I: The Redbox Logo
Exhibit II: The Major US Film Studios as of 2009

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

Custom Search

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

Business Strategy
Workbooks Collection

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.