Movie Studios See a Threat in Growth of Redbox

Movie Studios See a Threat in Growth of Redbox (Published 2009)

LOS ANGELES — In 1982, just as the VHS tape was taking off, a “Star Wars” buff named Mitch Lowe had a radical idea. What about building a vending machine that could rent movies? He called his invention Video Droid.

It failed. People were not yet comfortable using credit cards for casual transactions, the tapes broke easily and the technology involved with manipulating their bulk proved too expensive.

But Mr. Lowe did not give up, and his moment seems to have finally come.

Mr. Lowe, 56, is now the president of Redbox, a fast-growing company in Illinois that rents movies for $1 a day via kiosks. By December, there will be 22,000 Redbox machines in spots like supermarkets, Wal-Mart Stores and fast-food restaurants.

Interesting. I wonder how profitable they could be at a buck a day. Then again, pretty low overhead I would imagine. Primarily duplication and distribution coats.

How many people could swipe a gift card with a buck and change (to cover sales tax) left on it though and walk away with a DVD? Ulp - did I say something?

Looks like people are already on some kind of "code sharing" to get DVDs from Redbox for the low low price of - nothing?
Redbox Codes - Inside Redbox

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