WEBVTT

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there's only one blockbuster video rental store left in the entire world

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but somehow those redbox kiosks still seem to be outside of every shopping

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center in the u.s in fact they have around 40 000 of them which is about

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triple the number of mcdonald's locations in america

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so how is redbox still such a common site in a world that's now dominated by

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streaming well although streaming services typically offer lots of content for a

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pretty low monthly fee there's still a pretty big gap in the market lots of the

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movies on streaming services particularly recent releases are only

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available for an additional one-time rental fee that can run up to around six

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dollars by contrast redbox still rents dvds and blu-rays for just two bucks a

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pop and if you're out shopping anyways it doesn't even cost additional gas

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money to make a special trip to rent a movie as redbox focuses its business in

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places where folks are already concerned with cutting costs are likely to shop

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stores like walmart and other discounters even people who pass through

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the areas would rather just rent a two dollar film from redbox once or twice a

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month instead of spending 15 bucks in the same time period on a streaming

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subscription especially as streaming is becoming more fragmented often requiring

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tv and movie fans to subscribe to several of the services to access all

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the content they want those monthly fees can add up quickly redbox is most

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popular in smaller metropolitan and rural areas that have relatively lower

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costs of living places that are more likely to have people on the hunt for a

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good deal as well as less likely to have access to broadband for streaming

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combine this with how redbox often has movies a customer might not be able to

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access on their streaming service and suddenly their business model kind of

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makes sense and the fact that a vending machine is a heck of a lot cheaper than

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running to a brick and mortar store definitely doesn't hurt but is

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continuing to rent out physical dvds actually sustainable we'll tell you

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so even though redbox has carved out a niche for itself with physical disk

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rentals they've still been facing declining revenues for the past few

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years even with the advantages their kiosks offer the part of redbox customer

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base that is stuck with dvds and blu-rays because they're late adopters

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of the new tech have started to gravitate more towards streaming with

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ever-increasing broadband speeds helping to push more people away from disks so

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while redbox isn't planning to just abandon its kiosks in the immediate

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future it's also dipped its toes into the streaming wars they have an app for

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most platforms like your phone smart tv or streaming stick that offer free live

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streaming services of ad-supported movies and episodes kind of like pluto

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or 2b redbox also has individual rentals like on prime video or itunes though

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they're more expensive than renting their dvds even for the same movie

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meaning you're paying for that kind of convenience of not having to go to the kiosk kind of like how a hotel minibar

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works but is this going to be enough to compete with other services where

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streaming is their bread and butter instead of a more recent add-on redbox's

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plan seems to be to try and create partnerships with multiple studios and

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content distributors to make its app kind of a one-platform for everything

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type of solution instead of having to go to six different apps to watch all of

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your content combined with a loyalty program and original content redbox

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hopes they'll be able to differentiate themselves from other competitors in the

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crowded streaming market only time will tell if they're able to pull it off but

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until they figure it out you can still dust off your old dvd player and slide

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in a freshly rented disk there's just something comforting about it

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especially when it doesn't work because it's all scratched so thanks for

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watching if you like this video hit that like button you can also dislike if you

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