Red Box Target Market

Netflix is an amazing digital success story. Reed Hastings founded Netflix in 1997 in Scotts Valley, California. Despite the changes in the economy as well as the movie rental industry Netflix has continued to grow and increase their net income with each year. Netflix's U.S. subscriber base has grown by nearly 50 percent and its stock price has quintupled (cite). Netflix has been able to deliver movies through mail as well as having their movies streamed by its customers who indulge in movies in the privacy of their homes are all too familiar with how late fees work. A customer rents a movie for a specific amount of time at a specific price. Like most rental businesses once a customer does not return the movie within such specified amount of

Red Box was started in 2003 owned by Coin star (citebook). Red Box is known for and gets its name from the automated red kiosk that are located in various places and houses its DVDs. The kiosks are located in various places usually high traffic areas such as gas stations, the outside of Walmart’s and McDonalds. Giving consumers the ability to rent movies at the price of a mere dollar a day and the option to reserve movies or games for pick up online. Red Box also allows the convenience of allowing the consumer to return the DVD to any Redbox location not just the one they initially rented from. Blockbuster is another competitive organization. Blockbuster operates over 6,500 company owned stores in 17 countries with 62% of the stores being located in the U.S. (cite book). Blockbuster allows consumers to rent videos, games movies and also the option for the consumer to purchase movies as well. Blockbuster has closed many of its locations they are using this as an opportunity to focus on their North American business and investing time and money into a digital future. Blockbuster currently has about $1 billion debt to assist in the reduction of this debt Blockbuster is shutting some of its stores and reducing. Blockbuster has also collaborated with Samsung electronics to allow users of Samsung the ability to purchase from a library of Blockbuster DVD’s by just using the internet. Blockbuster much like Redbox has also labeled their own kiosk for video rentals. Currently Blockbuster has been working with Sonic Solutions to provide VOD (video on demand) for PCs, cell phones, and TVs that have internet connections. Even though Netflix started out predominately as a DVD subscription service they were able to take advantage of rapidly evolving technology enhanced by the internet. Netflix has clearly adopted an