January 27, 2017
Concerned New York City citizen worried that Redbox is shutting down its kiosks. Has Redbox passed it prime? It is a thing of the past with Netflix, Hulu and Amazon rising in their popularity? Or, is the kiosks disappearing in certain locations?
All excellent questions...
What is Redbox? To jog your memory, it's the company that lets you rent movies and video games via a kiosk for a daily fee - usually around $1 to $1.50 a day. They're commonly seen outside drugstores and supermarkets such as WalMart or Walgreens.
With more and more people turning to streaming services like Netflix, Amazon and Hulu, the Redbox business model has been threatened. The company had attempted its own streaming version with the Redbox Instant, which was in conjunction with Verizon.
It's currently trying another streaming service called Redbox Digital. It doesn't matter if it succeeds or doesn't, but with more people forgoing DVDs and opting for streaming services, the observation the citizen made may be accurate. The company may be pulling Redbox kiosks from neighborhoods that are underperforming.
According to Redbox, there's no plans to reduce the number of kiosks around the nation, but they do move them on a regular basis to serve their customers' needs. Therefore, you may see a kiosk gone that was previously at a location, but Redbox employees may have just moved it to another location - not thrown it out entirely.
The company said a majority of the locations have one kiosk, although it's not uncommon for a well-performing kiosk location to have a second one (think WalMart) to offer more DVDs.
Redbox has nearly 40,000 boxes across the nation.