Redbox Business Model

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Redbox is an American company that specializes in the rental of DVDs, Blu-ray Discs, and video games via automated retail kiosks. As of the end of June 2011, Redbox had over 33,000 kiosks in over 27,800 locations.[2] Kiosks feature the company's signature red color and arched top surface, visible in the corporate logo, and are located across the United States at grocery stores, pharmacies, mass retailers, convenience stores, and fast food restaurants. The company announced in February 2012 it will set up a few hundred kiosks in Canada in the coming months to aid in its decision on whether to jump fully into the Canadian market.[3] A subsidiary of Coinstar Inc., Redbox had 34.5% market share of discs rented, as of Q2 2011, as stated by the…show more content…
represented 62 percent of home video rental revenue in 2008–09, analysts have said that this “windowing” of new releases by the three studios may make Redbox’s business model unviable.[25][26] Redbox responded by filing lawsuits, first, against Universal in October 2008,[27] then against 20th Century Fox and Warner Bros. in August 2009.[28][29] In these lawsuits, Redbox has asserted three claims against the studios: copyright misuse, tortious interference and antitrust claims. In August 2009, the federal judge hearing the Universal case rejected the first two claims, but allowed the antitrust claim to continue.[30] While the judge found sufficient merit in the antitrust claim to allow the case to continue, some independent observers doubt it can succeed, since Redbox "must show that the studios worked together as a cartel... There is little evidence of an industrywide conspiracy."[25][29] In October 2009, 20th Century Fox and Warner Bros. filed motions to dismiss Redbox's lawsuits against them, with Fox arguing that "antitrust law does not require a seller to provide its product through the distribution channel that the buyer demands, on the date that the buyer demands, or at the price that the buyer demands,"[31] and Warner Bros. saying that "This is precisely the type of routine business dispute, motivated solely by a merchant’s attempt to protect its profits rather than to protect competition, that the antitrust laws are not meant to

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