Redbox: Disruptive Innovation in DVD Rentals
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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
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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.
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"I do not think this will destroy the film business, but it's certainly a major issue over the next few years, especially if it continues to grow at the rate it's
growing. Whether or not the titles get sold at the end of it, $1 a day does not
help the entire movie industry."1
- Rich Greenfield, Analyst at investment research firm, Pali Capital, talking about Redbox, Inc. in 2009.
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"Redbox is firing on all cylinders. They have good
hardware and software, good marketing and good partnerships for their deployment
locations."2
- Rufus Connell, Research Director for Information Technology at consulting firm, Frost & Sullivan, in 2007.
Introduction
In August 2009, Paramount Home Entertainment (Paramount)3 announced that it was beginning a trial licensing program with Redbox Automated Retail, LLC (Redbox) the leading automated kiosk rental service in the US, which offered DVDs on rent for US$ 1/ day.
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Redbox: Disruptive Innovation in DVD Rentals
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