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Redbox may be big winner following Netflix price hike

Written by Rich Fiscus @ 21 Sep 2011 12:47 User comments (6)

Redbox may be big winner following Netflix price hike

Based on the results of a recent survey, Redbox could be the biggest beneficiary of Netflix's decision to increase prices for combined streaming and disc rental plans.
The report, from Minneapolis based Magid Associates, indicates more than half of Netflix customers already rent from Redbox and a significant number of those expect to rent more from the industry leading kiosk-based service.

Magid's Mike Vorhaus pointed the finger at Netflix's limited selection of streaming content. He said, "A major reason that many consumers are not happy with their Netflix service is due to the quality of the content selection in the streaming service."

Since the announcement of their new plans two months ago, Netflix has suffered a series of setbacks.

Almost immediately after the announcement their stock price dropped 10%. It has continued to decline following additional announcements of a larger than expected subscriber decline and, most recently the decision to completely separate disc rental into the new Qwikster brand.

Their streaming service was also dealt a serious blow by the loss of Starz content.

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6 user comments

121.9.2011 13:36

Terror at the Top: a Culture of Fear at Netflix.

221.9.2011 15:00

Originally posted by SoftwareHollis:
Terror at the Top: a Culture of Fear at Netflix.

^^ awesome

321.9.2011 15:06

Redbox needs online streaming.

Redbox in my area is 1.15, I was told that the extra change was a project to see if people would still rent if the price go up that much but it will not stay permanently. glad my state doesn't have sales tax I would of ended up paying 1.23 this only for dvd though, blu ray and video games price still remain the same.

421.9.2011 21:47

I'm not about to switch to selection. That's why I switched to BB. Netflix/Quickster can kiss it!

522.9.2011 13:42

Blockbuster is on its way out. Now however, If Netflix subscribers jump ship, it might be an opportunity for BB to get back into the action. I started with BB but after it changed its rules too many times, I left and went to netflix. They seemed to offer better customer respect (albeit a few minor quirks with the service). I used Redbox during my last couple months of being a Netflix customer. I just didn't want to wait for the dvds anymore, and for $1 who cares right? Once I moved I discovered my local library has a huge selection of dvd's, tv, and blu-rays. Free of charge. 5c late charge per day. I go here for my oldies and still use Redbox for new releases at times. I'll never go back to BB because of their bait & switch habits, and Netflix obviously took a change for the worst.

622.9.2011 17:18

The rate increase at NetFlix caused me to start looking at alternative sources. I've had a very positive experience with Redbox using their online reservation system. In one week, I caught up with all the recent big hit movies from Redbox while NetFlix showed that I had a "Very Long Wait" for each them.

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