On Saturday Timber and I decided to try Red Box since we had heard a lot about it, how their business model worked, and how they were doing really well. $1.00 a day for movie rentals, especially for new releases sound like a pretty good deal from a customer perspective. On top of that we read that they are highly profitable. So we gave it a try, and here is how it basically worked.
1. We went to our neighborhood grocery store.
2. Near one of the entrances we found the Red Box kiosk.
3. We cycled through the movies that were offered and selected one, Julie & Julia.
4. We selected that we were done and wanted to do the rental.
5. I swiped my credit card for payment.
6. It asked for my email address so that it would email me a receipt.
7. When I was done with that it popped out the DVD and we were done.
Overall that experience was fairly smooth and I don't have any real complaints about it.
We took the movie home and watched it, it worked fine. We had until 9 PM to get the movie back or be charged another $1.00. So at 8:30 PM today I went back to the grocery store to return the movie. When I got there I saw a line of people waiting to return movies. I bought something on my list from the grocery store first hoping that the line would get smaller. But when I was done and went to return the movie the line had actually grown a little bit. So I got in line and finally returned my movie with 7 minutes to spare. Here's how the process worked:
1. I clicked on the button saying that I wanted to return a movie.
2. It asked me to insert the movie, which I did. And then I was done.
Overall I can understand how their business model works and how they make money. It is fairly convenient and cheap for customers, so I can understand how some people would rather use red box than netflix or iTunes.
Since I have an Apple TV I thought I would compare and contrast renting a DVD from Red Box versus renting a movie from iTunes via the Apple TV.
1. Convenience - I think iTunes is much more convenient because I don't have to drive anywhere and I don't have to worry about bringing the movie rental back (iTunes deletes it after 24 hours). If I already have to go to the grocery store every day then I would be ok with Red Box, but I don't want to be inconvenienced by having to go back to the store just to return the DVD. That's so 90's.
2. Selection - iTunes has WAY more movies available than Red Box. Red Box only has new movies that have just come out on DVD. On top of that, they were out of several DVDs when we checked it out. You never have to worry about iTunes being out of movies. If they offer it for rental, you can rent it. And you don't have to stand in line. Another advantage that iTunes has is that you can watch previews of as many movies as you want before you rent one. Red Box does not show any previews, and the people behind you in line would not appreciate it even if they did.
3. Price - Red Box has iTunes beat here. Red Box is $1 a day up through 25 days at which point you now own the movie. iTunes is $3.99 for a standard def movie and $4.99 for a hi def movie. For this comparison I'm doing the $3.99 versus $1. So iTunes is four times more expensive to rent.
Conclusion:
In the end I think it comes down to what works best for your situation. I have an Apple TV and a high speed internet connection, which cost $229 for the Apple TV and $40 a month for the high speed internet connection. If you don't have these then there really is no comparison. But if you do have these then you're probably like me and you'll most likely go with convenience over price. I like the fact that I can download HD movies, watch them, and then not worry about rewinding a tape or running them back to the store. It costs 4 times more (just for the movie) but I don't have to make two trips to the store and wait in line both times. I'm glad I've moved on from the 90's. But I can see how Red Box has hit a sweet spot which allows them to be very profitable. There was a need which they seem to be filling well.
1. We went to our neighborhood grocery store.
2. Near one of the entrances we found the Red Box kiosk.
3. We cycled through the movies that were offered and selected one, Julie & Julia.
4. We selected that we were done and wanted to do the rental.
5. I swiped my credit card for payment.
6. It asked for my email address so that it would email me a receipt.
7. When I was done with that it popped out the DVD and we were done.
Overall that experience was fairly smooth and I don't have any real complaints about it.
We took the movie home and watched it, it worked fine. We had until 9 PM to get the movie back or be charged another $1.00. So at 8:30 PM today I went back to the grocery store to return the movie. When I got there I saw a line of people waiting to return movies. I bought something on my list from the grocery store first hoping that the line would get smaller. But when I was done and went to return the movie the line had actually grown a little bit. So I got in line and finally returned my movie with 7 minutes to spare. Here's how the process worked:
1. I clicked on the button saying that I wanted to return a movie.
2. It asked me to insert the movie, which I did. And then I was done.
Overall I can understand how their business model works and how they make money. It is fairly convenient and cheap for customers, so I can understand how some people would rather use red box than netflix or iTunes.
Since I have an Apple TV I thought I would compare and contrast renting a DVD from Red Box versus renting a movie from iTunes via the Apple TV.
1. Convenience - I think iTunes is much more convenient because I don't have to drive anywhere and I don't have to worry about bringing the movie rental back (iTunes deletes it after 24 hours). If I already have to go to the grocery store every day then I would be ok with Red Box, but I don't want to be inconvenienced by having to go back to the store just to return the DVD. That's so 90's.
2. Selection - iTunes has WAY more movies available than Red Box. Red Box only has new movies that have just come out on DVD. On top of that, they were out of several DVDs when we checked it out. You never have to worry about iTunes being out of movies. If they offer it for rental, you can rent it. And you don't have to stand in line. Another advantage that iTunes has is that you can watch previews of as many movies as you want before you rent one. Red Box does not show any previews, and the people behind you in line would not appreciate it even if they did.
3. Price - Red Box has iTunes beat here. Red Box is $1 a day up through 25 days at which point you now own the movie. iTunes is $3.99 for a standard def movie and $4.99 for a hi def movie. For this comparison I'm doing the $3.99 versus $1. So iTunes is four times more expensive to rent.
Conclusion:
In the end I think it comes down to what works best for your situation. I have an Apple TV and a high speed internet connection, which cost $229 for the Apple TV and $40 a month for the high speed internet connection. If you don't have these then there really is no comparison. But if you do have these then you're probably like me and you'll most likely go with convenience over price. I like the fact that I can download HD movies, watch them, and then not worry about rewinding a tape or running them back to the store. It costs 4 times more (just for the movie) but I don't have to make two trips to the store and wait in line both times. I'm glad I've moved on from the 90's. But I can see how Red Box has hit a sweet spot which allows them to be very profitable. There was a need which they seem to be filling well.
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