Redbox Gets Bought: Another Success For Good Service At A Good Price

from the doing-things-the-right-way dept

Redbox, the company that rents DVDs out of automated kiosks for $1 per night, has been bought for up to $176 million by its biggest investor, Coinstar. It was hard to dislike Redbox: the company was having a lot of success in a space where other companies hadn't, by creating a convenient and easy to use service that delivered at a great price. Plus, anything that gets Hollywood's knickers in an enormous twist generally is pretty good. Universal Studios, in particular, tried to hamper Redbox through threats leading to lawsuits (update: clarified that Redbox filed the lawsuit... in response to a threat from Universal), perhaps hoping to kill the company off before launching rental kiosks of its own. But rather than try to destroy Redbox, Hollywood (and plenty of other people) should learn from it: the way to success isn't by putting all sorts of obstacles in the way of your customers' happiness, it's by providing them a service they want, delivered in an easy way, with a lot of value.


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  1.  
    identicon
    Copyrights & Campaigns, Feb 13th, 2009 @ 4:02pm

    It was Redbox, not Universal, that sued

    "Universal Studios, in particular, tried to hamper Redbox through lawsuits..."

    Actually, it was *Redbox* that sued Universal:
    http://www.eff.org/files/Redbox%20v%20Universal_Complaint.pdf

     

    reply to this | link to this | view in thread ]

  2.  
    icon
    Mike (profile), Feb 13th, 2009 @ 4:35pm

    Re: It was Redbox, not Universal, that sued

    Yes, in response to a threat from Universal. So, hardly a difference that matters. Either way I added an update to Carlo's post to clarify.

     

    reply to this | link to this | view in thread ]

  3.  
    identicon
    gtpeach, Feb 13th, 2009 @ 5:26pm

    oh boy. get ready the 8 cent per every dollar upcharge coinstar takes from is machines might end up appearing somehow in our cheap dvds. :( i bet they can free dvd monday too.

     

    reply to this | link to this | view in thread ]

  4.  
    identicon
    Rekrul, Feb 15th, 2009 @ 6:24am

    My friend bought a movie from a Redbox machine. He bought The Water Horse because he wanted all the special features. After paying his $7, he was disappointed to find that he only received the disc with the movie on it and not the supplemental DVD that comes with all other releases of the film. He hasn't bought or rented anything from them since.

     

    reply to this | link to this | view in thread ]

  5.  
    identicon
    Dumb, Feb 15th, 2009 @ 12:09pm

    Re:

    Well, i mean i bet it didn't tell him it came with all the special features and what not. Why wouldn't he rent from them still? Its a great service

     

    reply to this | link to this | view in thread ]

  6.  
    identicon
    Anonymous Coward, Feb 15th, 2009 @ 3:07pm

    So none of the pro-IP guys want to come over here and talk about how Redbox is stealing? How their cheap distribution is going to bankrupt hollywood?

    None of that? Perhaps you guys want to argue that Redbox should be illegal? I mean, if big copyright doesn't like it, it must be bad for the country right?

     

    reply to this | link to this | view in thread ]

  7.  
    identicon
    duh, Feb 16th, 2009 @ 2:23pm

    Re:

    Your friend (which we assume is you) is an idiot. Did you think it was going to give you the fancy box and paper inserts too?

     

    reply to this | link to this | view in thread ]

  8.  
    identicon
    Rekrul, Feb 16th, 2009 @ 7:07pm

    Well, i mean i bet it didn't tell him it came with all the special features and what not. Why wouldn't he rent from them still? Its a great service

    No, in fact it didn't say much beyond the movie description. However, since every single DVD release of the film includes two discs, it stands to reason that when Redbox bought their copies, they got the second discs for each one. It's not so outrageous to believe that they would include both discs rather than just chuck a few million copies of the second disc. And yes, the copies they had were from the 2-disc releases because the movie disc was labelled as Disc 1.

    Your friend (which we assume is you) is an idiot. Did you think it was going to give you the fancy box and paper inserts too?

    You assume incorrectly. There are very few movies I like enough to spend money on and if there is one, I'll wait until I can buy a normal retail copy from the bargain bin or the local flea market. Most of the time, I'd just download it.

    And as I pointed out above, there was no reason to assume that the second disc wouldn't be included. Redbox could easily fit two discs in their kiosk boxes.

     

    reply to this | link to this | view in thread ]

  9.  
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    Omar, Jul 26th, 2009 @ 1:26am

    hollywood rocks!

    YES, I AGREE THAT REDBOX IS CHEAPER, BUT THEY DO NOT OFFER CONCESSIONS AND GREAT RECOMMENDATIONS LIKE HOLLYWOOD VIDEO.
    AND 5 DAY RENTAL FOR ONLY 4.29 SO TECHNICALY ITS CHEAPER THEN REDBOX AND OFFER MORE DAYS TO KEET YOUR RENTAL!

     

    reply to this | link to this | view in thread ]

  10.  
    identicon
    steve, Nov 30th, 2012 @ 5:12pm

    theres a free guide how to get a Redbox at
    redboxprofits.com/intro

     

    reply to this | link to this | view in thread ]


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