Redbox: Disruptive Innovation in DVD Rentals |
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Excerpts Contd...Background Note
Problems with Movie StudiosHowever, 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... CompetitionRedbox 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... OutlookDVD 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... ExhibitsExhibit I: The Redbox Logo
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