Head To Head: Netflix vs. Redbox

The Movie Industry Overview

Rental services are the cheaper way of watching movies:

Buy DVD -- $10.00 per DVD
Go to the Movies --- $7.95 per person
Rent a DVD ------ $1 per DVD


Most Americans have the technology to watch movies at home:

Almost 90% of U.S. homes have a DVD or Blu-Ray player.


Netflix revenue

2008 -- $1.36 Billion
2009 -- $1.67 Billion
2010(Q1) -- $493.7 million



Rental Market in 2009

Subscription Service - 45%
Kiosks - 19%
Rental Stores - 36.0%


Redbox Revenue

2008 -- $388.5 million
2009 -- $773.5 million
2010(Q1) -- $263 million


HEAD TO HEAD: THE FUTURE OF
NETFLIX vs. redbox


Netflix pros and cons

Price: $8.99 per month
1 DVD out at a time

Selection: 1,00,000 titles

Rental System: DVD-by-mail
The delivery usually takes 1 business day

Movie Stream
Unlimited instant movies

No additional fees
Even if you keep the DVD for an extra day.


Netflix advantage: Unlimited web viewing

61% of Netflix customers have streamed at least 15 minutes of a movie or TV episode
The movies are streamed via Internet and Consoles like Wii.


Redbox pros and cons

Price: $30 per month
if you rent and return 1 DVD everyday for a month

Selection: 200 titles

Rental System: Kiosks
The customer can rent DVD's anytime

There's no movie stream
Redbox will probably launch a web service

Late fee
$1 per day


Redbox advantage: Convenience

An average of 1 Redbox kiosk is opened each hour in the United States.
Redbox operates more than 24,000 vending machines The Movie Industry Overview Rental services are the cheoper way of watching movies: Most Americons have the technology to watch movies ot home: Buy a DVD $10.00+ per DVD Almost IIIII I--- D 90% Golo he movies ----- $7.95+ per person of U.S. homes Rent a DVD $1.00 per DVD have a DVD or Blu-Ray player. Netflix revenue Rental Market in 2009 Redbox revenue Subscription Service o -o Kiosks 19% 45% Rental Stores 36.0% 2008 2009 2010 (Q1) 2008 2009 2010 (Q1) HEAD TO HEAD:THE FUTURE OF NETFLIX | vs. redbox redbox POP Coen Netflix pros and cons Redbox pros and cons $ V Price: $8.99per month 1 DVD out at a time Price: $30 per month X $ fyou rent and retun 1 DVD every day for a month. V Selection: 100,000 titles Selection: 200 ritles X A X Rental system: DVD-by-mail The delivery usually tokes 1 business day Rental system: kiosks / The customer can rent DVDS anytime Movie stream Unlimited instant movies There's no movie stream X Redbox will probably lounch a web service V No additional fees Even if you keep the DVD for an extra day Late fee X + $1 per day Netflix advantage: Unlimited Web viewing Redbox advantage: Convenience 61% of Netflix o- customers have streamed at least 15 minutes of a movie or TV episode. An averoge of 1 Redbox kiosk is opened each hour in the United States. The movies are streamed via Internet and consoles like Wii". Redbox operates more than 24,000 vending machines. Information provided by: RENTERS Rentersinsurance.org Sources: Time | Mint | Hothardware.com | ZDnet