Redbox Analysis

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Pages: 2

Homework 1
1. Consumers are willing to rent from Redbox because the movie cost only one dollar and the machines are easily accessible. The Redbox machines are placed at gas stations and grocery stores, these places are frequently visited. People find them easy to use and can order online, which is convenient for them because they are probably going to the store anyways. With Blockbuster and Hollywood Video closing their doors there are no other place to rent a movie that are newly released. With Comcast and Verizon charging in the twenty-dollar range to stream a new movie, people would rather drive a couple miles to rent a movie then add twenty more dollars to their already overpriced cable bill.

2. Redbox was able to overcome some of its