Redbox is a kiosk where people rent DVDs for one dollar a day. The innovation of the company has made it one of the top places to rent DVDs. There are over 22,000 redbox machines in operation currently. If a person wants to rent a DVD they walk up to any machine and scroll through the selection of movies. Then they swipe their credit card and the DVD comes out from a slot on the machine. Once the person has watched the DVD, they can take the movie back to any redbox location. Their credit card will be charged a dollar for every day they kept the DVD.People can also reserve a DVD online and select a redbox location to pick up the DVD. Nowadays wherever people seem to go, there is a good chance a redbox is nearby. The distribution of the machines all over the country is amazing.
Redbox has put pressure on companies like Blockbuster and Movie Gallery to compete with them. Blockbuster has closed many stores due to the fact people are now using redbox. People are no longer willingly to spend six dollars on a movie they rent for only a couple of days. Movie Gallery is no longer in business and this can be partly credited to redbox's innovative business model. Redbox is now crossing over to video games and it will be interesting to see how this affects video game rentals in the future. Redbox has found a niche in the market where people love to watch movies and who also want to save money.
