Redbox is Good
Nov 11th, 2007 by Colin
When they asked us to move to Arkansas, one of my first thoughts was "I hope they have Redbox there." Yes, that really was one of the first things I checked when analyzing the area. Redbox is a system of ATM-looking machines (big and red) where you can rent movies for $0.99/day, with no membership or fees of any kind. And they didn't have Redbox in Arkansas–not until a month ago. What they did have, at the grocery stores, was something called The New Release. And it wasn't the same thing… it really seems like a simple business model–how much different could it be?–but it was different enough that I didn't rent more than a few movies from The New Release boxes. Still, either is better than the obsolete $5 for 5 days offered at Blockbuster, Hollywood Video, or any other video store.
According to its website, TNR has more than 3,000 locations, including locations in A&P, Dillon’s, Food 4 Less, Food Lion, Fry’s, H-E-B, Kroger, King Soopers, Publix, Quality Food Centers, Ralph’s, Roundy’s/Pick ‘N Save, and Spartan/Family Fare. It has been around since 2002. Redbox, on the other hand, burst onto the scene in 2005 and now has 5000 kiosks because of its marketing and operational efficiencies and its partnerships with McDonalds and Coinstar. It can be found at most any McDonalds, some WalMarts, and any grocery store that has a Coinstar machine.
Okay, now my pragmatic beefs: First, Redbox is miles more user friendly. One would think the major touchpoint metric of the business model would be the software running the box, and therefore both companies would put professional usability into their development. Not so, The New Release is a bear to use. First off (if you're reading this, corporate people), there is no ability to sort by release date. You can click "Show only new releases" and it shows movies less than a year or two old; but what's the point in that? At a Redbox, the first thing I do is sort by release date, which shows me the movies I'm looking for before it shows me movies I've vetoed 20 times on my last 20 visits. At The New Release, I have to thumb through 100 movies alphabetically no matter what I'm looking for, and if I'm barely able to convince my wife to come rent a movie, not being able to scroll efficiently is a death trap.
Second, and another dealkiller: At The New Release kiosks, there is nowhere, nowhere, where it says when the movie's due. The first time I rented a movie I went home and surfed their website for 10 minutes looking for a time when I had to have the movie in, and it is simply not there. I'm assuming it's at midnight the next day, but I still don't know that. Redbox is clearly due at 9 pm to any Redbox.
Third, Redbox has passwords for free movies. No matter what you do, they'll send you more passwords. I've even seen them on the news saying they love the free publicity when people set up sites like InsideRedBox.com, which give you hundreds of passwords for hundreds of free movies. If you're selling a new concept, you have to give free teasers, and Redbox understood that with one of history's most successful viral marketing campaigns–that of sending free passwords in emails and encouraging people to pass said passwords on to friends.
Fourth, you can return a movie to any Redbox. People, we have too many libraries in America, let alone video rental locations, to have not learned this lesson. If at all possible, I want to be able to rent wherever I'm at and return wherever I'm at. I want to be able to go on a business trip or vacation, knowing I can rent a movie here and return it there, or vice versa.
Overall, any rental kiosk is better than a store. Stores are better for selection, but selection's not worth $5 when you can buy most "selection" type movies for under $10 these days. Supposedly future kiosks will have the ability to copy movies to an iPod, but I'll believe that when I see it for under $15. I always feel bad saying a company that's only a few years old is obsolete and needs to be relegated to oblivion, but most movie rental companies are just ridiculous in today's economy. And Redbox is amazing, so amazing that I'll bet they're a) reading this blog, and b) will send me more passwords for posting about them. Maybe they'll offer me a job. The New Release / Blockbuster / Hollywood Video / etc., if you're reading this, please fix the things I said above, make a zillion more dollars, and a) offer me a job, b) offer me money, and c) offer me free rentals. Thank you and cartago delenda est.