Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Competitors
In December 2014, Redbox raised prices on movies rented at its 40,000 kiosks in the United States, with daily rental rates for DVDs going from $1.20 to $1.50 (up 25 percent) and Blu-ray rentals going from $1.50 to $2 (up 33 percent). In January 2015, Redbox raised prices on its daily video game rentals from $2 to $3 (up 50 percent). Even at $1.50 a day on DVDs, Redbox remains “the best value in new-release home entertainment,” says CEO J. Scott Ki Valerio of parent company Outerwall (OUTR). Redbox (and Cinemark) faces mounting competition from video streamers Netflix and Amazon. Redbox’s Q3 2014 revenue dropped 5 percent to $1.4 billion, and same-store sales fell nearly 12 percent. By the end of 2014, Redbox plans to remove 500 to ...
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