Earlier this week I posted something on Redbox on the innovation blog. They are shaking up the movie rental business with $ 1 rentals.
Today, the New York Times demonstrates just how much it is shaking and stirring the business.
“Anyone whose business involves selling movies should be enormously concerned” is one of the quotes. And even the studios which do business with it make it “destroy their discs rather than resell them (after its usual practice after renting a disc 15 times)”
And it occurred to me this is so much like on-premise software vendors. They would rather sell you your own copy and charge you 20X. Make you hang onto shelfware rather than resell it. And just like upgrades in software world, they made money on the same movie in VHS, then DVD, now BluRay formats.
Is it a wonder then that Redbox is growing as rapidly as SaaS?
