Tuesday, January 16, 2007
What Netflix Really Needs to Beat BlockbusterI was reading TechCrunch's post on Netflix's new download service and while I think its a great idea, I don't think it is the right partnership to counter the Blockbuster online + brick and mortar system. Don't fret, I have the solution Netflix is looking for; Redbox. Redbox is a new video rental company you may have seen in your local grocery store, Wal-Greens or McDonald's, but if you haven't seen them think soda machine meets DVD rentals.
Redbox partners with local retail outlets which allows them to put their automated DVD rental kiosks in high traffic prominent places. These kiosks allow you to slide a credit card, type in your email address on the touch screen, select your movie from 100 or so and for $1 per night (24hrs) the machine will spit out a DVD in nice plastic case and you are on your way. A receipt is automatically emailed to you and next time you return, all you do is slide your credit card and pick your movie. Its amazingly simple and relatively quick. Its perfect for people like me who are Netflix subscribers, want a movie that night, and don't live close to a Blockbuster. In fact, the ones in my area are widely popular.
While I think I'll like the Netflix download service, it is quite limiting and I believe that it is not the counter to Blockbusters' rent online with the exchange in store option. How many people are going to sit around their computer on Friday night and watch a movie? Very few of us. At least until the home media center is widely adopted and TVs can be easily utilized. A partnership with Microsofts's Xbox360 would have been nice. But if Netflix were to acquire or partner with a company like Redbox, (I'm sure they could integrate the two systems), I think it would be the nail in Blockbusters' coffin.
By Jason Dowdell at 08:10 AM | Comments (2)