The DVD rental isn’t dead yet.
Redbox is bringing its popular vending-machine DVD business to Canada’s billion-dollar movie-rental market, aiming to fill a void created by the failure of Blockbuster Corp. and other traditional video stores.
Along with Netflix Inc. Redbox Automated Retail LLC is credited with revolutionizing the movie rental business in the United States and helping to persuade some cable and satellite television subscribers to cut their cords and rely entirely on the easily accessible, lower-cost offerings.
The company,has quietly laid the groundwork for a Canadian launch and will set up a few hundred kiosks in the coming months to decide whether to jump fully into the market. It has 29,000 kiosks through the United States that offer movie and game rentals for less than $2 a day.
“The combination of Redbox and Netflix completely destroyed the store channel in the United States,” said Brahm Eiley of Convergence Consulting Group. “And they also encroach on television subscriptions,” he said. “Cord cutting in the U.S. is almost triple what it is in Canada.”
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