http://online.wsj.com/article/SB122895835251696731.html
Redbox is the greatest vending machine/movie rental store ever! In case you didn't know Redbox is a vending machine that is basically a mini and super cheap and convenient movie store. They are located in front of many popular stores (McDonald's and Gaint Eagles). Redbox only charges $1 to rent all new and old movies and they also have a cool feature where you can buy the used movies for $9. This new technology and service is not a big hit with everyone.
Currently Universal Studios and Redbox and in an on going battle. Universal believes that Redbox is ruining the sales and rentals of their new videos. This is because Universal usually charges around $20 to buy their newly released movies. Universal is trying to stop Redbox from purchasing and distributing their movies currently. They have also tried to lay out a new plan for Redbox, which would only allow them to have 8 copies of a movie in their kiosks. Redbox would also not receive the movie until 45 days after its release date. I think that this plan by Universal is a horrible idea. Instead of trying to change this new way of business I think that they should adapt to it and lower their prices.
Redbox's low prices are also hurting the sales of Blockbuster and other movie rental stores. Conventional movie stores can not compete with the price that Redbox is offering because they have pay for their buildings and pay for staffing. Redbox does not have to deal with any of that. That is why I believe that Redbox is one of the greatest inventions/ideas ever! Low cost. High profit!
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