Against the Big Dogs

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The movie rental industry’s free-for-all competition has escalated into a bloody price war. The new RedBox-Verizon Axis threatens Netflix’s standing as the Big Dog in the movie rental industry. The dynamic duo is in a position to give Netflix a run for its money with a strategy that has stood the test of time-lower prices.

The co-operative effort, called RedBox Instant, will offer customers a new streaming video service and unlimited DVD rentals for the purpose of pulling the Big Dog’s chain. The Big Dog is feeling the pressure through RedBox Instant’s pricing strategy. RedBox will be offering subscriptions for on-demand rentals for $6 a month for unlimited access. Additionally, RedBox Instant is providing on-demand rentals and new title sales for as little as 99 cents. An enhanced subscription of $8 will add 4 RedBox credits for the streaming media package. The credits can also be redeemed at the ubiquitous red Kiosks as well.

RedBox Instant will make its debut initially on the web, iOS and Android platforms. The Xbox 360, Blu-Ray players a selection of Samsung TV’s. The announcement of the RedBox Instant release was initially scheduled for December of 2012.This new addition to the highly competitive market bodes well for consumers with an anticipated lower prices and great subscription offers.

Astute consumers are finding alternative services for a plethora of services that, until now, faced no real competition from upstarts like internet services such as Pop Freedom or new Operator Systems like Sailfish. One trending telltale seems to be established industry leaders being challenged by a number of upstarts who insist on challenging the status quo. As the industry evolves, one can assume that the Big Dogs of yesterday will one day be replaced by todays more nimble challengers.

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