Table of Contents
Introduction……………………………………………………………………........1
Industry Overview………………………………………………………………2-8
Client Profile & Competitor Analysis……………………………………9-17
Comparative Analysis……………………………………………………….18-19
Consumer Analysis………………………………………………………….20-23
Consumer Insights………………………………………………………….24-29
Survey…………………………………………………………………………….30-31
Results……………………………………………………………………………32-41
Recommendations…………………………………………………………..42-45
Appendix I……………………………………………………………………..46-48
Appendix II………………………………………………………………….…49-55
References………………………………………………………………………56-57
Will Haven, Lucy Ross, Jessica Stephens, Lauren West & Bonnie Willard
Redbox is leading the way in the
premier industry of DVD rental kiosks. With
Coinstar as its established parent company,
redbox is currently surpassing its competitors
with its number of self-service kiosks.
Redbox’s growing popularity is facilitated by
its physical distribution, which places the
kiosk in high traffic locations such as WalMart, Kroger, McDonalds and Walgreens.
Due to redbox’s standing as the
progressive option for DVD rental, its decision
to target the 18-24 year old demographic was
evident. This demographic embodies the idea
of innovation, experimentation, and
dependency on technology, all of which are
imperative to transform an introductory
product into a nationwide brand.
The following report provides
secondary and primary research in order to
construct an accurate glimpse of redbox and
its emergent status within the 18-24 year old
target market of the DVD rental industry.
This report includes the description and
results of eighty self-administered surveys
completed by samples of the target market.
Based on an analysis of these results, the
report concludes with recommendations
designed to assist redbox in more effectively
reaching its 18-24 year old target market.
1|Page
Industry Size:
aspects of competition, the prices throughout
Revenue & Product Life Cycle
the entire industry were forced to drop. This
also explains why
DVD, GAME & VIDEO RENTAL MARKET
DVD, Game, and
Video Rental
Revenue
12000
the number of units
sold increased but
the revenue has continued
to decrease (1).
The heightened competition can be
predicted to cause an improvement in the PLC
10000
stage of the DVD, Game, and Video Rental
8000
6000
Revenue in
Millions of
Dollars
4000
2000
2014
2011
2008
2005
0
Graph 1, Source: (1)
As shown in Graph 1, the estimated
Industry as well. Prices are lower and new
innovations are being introduced causing
increases competition. Once kiosks become
more successful and begin to gain its own
loyal customer base it could single-handedly
cause the industry to revert back to the
maturity stage of the PLC.
size of market in 2010 is $7. 724 billion. The
DVD RENTALS
pattern of revenue over the past five years has
shown a constant annual decrease. It is also
Number of DVD
Rentals
predicted to decrease in the following five
years. The graph shows that the DVD, game,
and video rental industry is currently in the
decline stage of the product life cycle (PLC).
The pressures of competition cause the
200
Number of
DVD Rentals
in Millions
100
0
2000 2002 2004 2006
decline. Not only were more brick-and-mortar
companies beginning and lowering their
Graph 2, Source: (1)
prices, new methods of selling caused
From 2000 until 2005 the industry was
increasingly high competition in other ways.
steadily growing because it was a new product
Companies like Netflix emerged and cable and
being introduced to the market and new
satellite companies began marketing video
competitors were being introduced as well.
streaming. In order to keep up with the many
Thus, prices were lower and the demand was
2|Page
higher. During 2005 and 2006 the number of
cycle. At this point, sales revenue is
DVD rentals leveled off showing that it was at
continuing to rise while competitors are
its mature stage in the PLC. However, in 2007
entering the market. However, redbox has to
the graph shows a decline to a value of 171.2
approach its marketing and advertising in a
million DVD rentals. This shows evidence of
way to attract new customers detract from its
new competitors and the oncoming recession
competitors (2).
of the economy beginning in 2008 (2).
Video Rental Kiosk
According to Adams Media Research,
“Kiosk rental sales are expected to rise 42% to
$1.3 billion this year” (3). The total number of
DVD rental kiosks in 2007 was 10, 000. In
2012 there is predicted to be 50,000 kiosks.
Over the course of five years the industry is
predicted to grow by five times its size (2).
The amount of DVD rental revenue in
Graph 3, Source: (58)
2007 that came from kiosks was $200-250
million. The revenue is expected to reach
$1.5-2 billion in 2012 (2).
During the years 2007 -2012 as
shown in graph 3 the market for DVD rental
kiosks will be in the growth stage of the
product life cycle. At this point, sales
revenue is continuing to rise while
competitors are entering the market (2).
The new technology, affordability and
convenient locations make kiosks a
pertinent aspect in the future of the
changing DVD, Game, and Video Rental
Market.
During the years 2007 -2012 redbox
will be in the growth stage of the product life
3|Page
Competitors
Thousands
Number of Establishments
the consumer can retrieve DVDs. The
internet has broadened the area in which the
consumer can attain his or her DVD (1). With
21
this in mind, research proves that the DVD
20.5
20
rental industry has a new standard: being
19.5
integrated with the internet.
19
Integration and the constant
18.5
18
Units
availability of movies have created the next
17.5
generation of the movie rental industry (1).
17
This development increases convenience to
the consumer, thus allowing these companies
16.5
16
to lead the industry. Dependence on the
2005 2006 2007 2008 2009
internet
allows
Graph 4, Source: (1)
consumers
Redbox Competitors
Kiosk
to stream
Blockbuster
video
Express
Retail
Movie Gallery
Blockbuster
Hollywood
Video
Stores
Online
Netflix
iTunes
Cable
Encore
HBO
Mail
Netflix
Blockbuster
Video On-
Amazon
AT&T
Showtime
straight to
Factbox:
75% of Coinstar’s capital
expenditures in 2009 were for
redbox kiosks 51.
his or her
.
PC and television. The improvements in
technology makes it difficult for new
Dish Network
Demand
companies or brands to enter the market if
they are lacking in this area. Yet another area
Exhibit 1
Competition within the DVD rental
in which technology has become a
determining aspect is self-service kiosks(1).
industry is very stiff. The reason for such
Not only is the competition based around the
competition lies in the fact that the industry is
convenience of the internet, it has also
cutting-edge. As shown in Exhibit 1, there are
become vital that companies offer consumer-
numerous competitors within the market of
friendly interactive technology. The fact that
DVD rental but there is only room for a select
the majority of the companies offer such
few to shine. With the introduction of new
innovative ideas to the consumer, such as self-
technology, there are numerous ways in which
service DVD rental kiosks, make it difficult for
4|Page
competitors to enter the market without such
and products. Redbox customers are no
advancements.
exception to this movement and are actively
Looking back at the competition
seeking quicker, more streamline results. The
within the DVD rental industry, research
self-service kiosks provide this modern feel
states that it is based heavily on technology
through instantaneous results. Redbox meets
(1). Much of this industry is becoming
its customers’ request for time flexibility via
cutting-edge and is up-to-date with the
24-7 operational hours unlike the
current technology like that of almost
confinement of regular store times. This
everything for
advancement eliminates interactions with
the consumer.
employees which allow customer control over
Given that the
their own transactions (2).
consumer today
Also, redbox recognizes that the
has an
current recession continues to influence the
innovative
cultural environment in the U.S. consumers
nature and
that are searching for affordable
desires
entertainment are responsive to the concept
convenience and new products, it is only
of $1-per-night DVD rentals. The largest
fitting that the DVD rental industry be
percentage of such DVD rental consumers are
complimentary to the consumer’s needs.
cited by IBIS World as middle and high
income households because their purchasing
Social/Cultural Implications
Redbox has successfully pegged two
abilities are higher than the average
household (1). Redbox is meeting this social
vital facets concerning the average American
segment by
consumer: technological advancement and
positioning
affordability. The DVD rental industry has
their
always been based on the concept of low-cost
kiosks in
home entertainment, but redbox kiosks have
routine
taken that idea further and molded it to fit the
locations
current cultural environment in the U.S.
for the
With the continuous outburst of
technology, the American consumer has come
target market such as Wal-Mart, Kroger,
McDonalds and Walgreens (2).
to demand immediate access to information
5|Page
Economic Environment
Despite slight increases in the GDP, the
American economic status continues to reflect
the effects of the recent recession. The most
recent release
Factbox:
29% of redbox users
generate a total
household salary of
$60-100k 53.
shows that in the
fourth quarter of
2009, the GDP
increased at an
annual rate of 5.9%
(11). The Consumer
Price Index stands at 202.416, up .616 from
December 2009 (40). Unemployment slid
from 10.0 in December 2009 to 9.7 in January
2010(41). The Consumer Confidence Interval
for January 2010 is at 55.9, up from 53.6 in
December (42). The consumer confidence has
two components: the present situation index
and the expectation index. Any reading about
the recession, and this growth trend is
predicted to continue into 2010 (43). Redbox
in particular has taken the initiative of
creating a brand that pinpoints the cautious
consumer with $1 per night rentals (2).
Analysts attribute the increased popularity of
the DVD rental market to $1 per night rental
kiosks (43). The cost conscious consumer is
able to not only receive an initial low price for
the DVD but also to personally determine the
amount of overage charges (2).
January 2010 Economic Statistics
Gross
Domestic
Product
Consumer
Price Index
Consumer
Confidence
Interval
Unemployment
Rate
Increased at
an annual
rate of 5.9%
according to
the fourth
quarter of
2009 report.
202.416 (Up
from 201.8 in
December
2009)
55.9 (Up from
53.6 in
December
2009)
9.7 (Down from 10.0
in December 2009.)
Exhibit 2, Source: (6)
Regulatory and Legal Issues
The Entertainment Merchants
90 is considered a strongly positive outlook
on the economy. While these figures do
Association (EMA) regulates the DVD rental
indicate an increase, they are still a far cry
industry. According to the EMA’s public
from the CCI’s prior to the recession. This
policy, it states
reveals that consumers are still weary of the
that its priority is
stability in the economy and are not as
to execute the
confident in their purchases. Frugality has
first sale doctrine that protects the DVD
moved into a more primary position within
rental retailer’s rights to sell and/or rent
the consumers’ minds.
lawfully made copies without any limitations.
The DVD rental market has found a
The association also provides enforcement of
niche within these economic difficulties as
movie ratings that include restrictions
being the affordable entertainment option.
provided by Motion Picture Association of
According to Standard & Poor’s, there has
America (MPAA) concerning violent material
been an increase between DVD rentals and
(18).
6|Page
Given permission by the U.S.
Constitution, Congress has the authority to
making copies of DVDs and re-selling them
under a non-licensed business.
ratify Section 109 of the Copyright Act that
the code of the first sale of doctrine is codified
Factbox:
Redbox is among the top
10 credit-card processors
in the country 54.
in. The first sale
Technological Developments
Technological developments have
doctrine gives the
played a crucial role in the DVD rental
DVD rental industry
industry in the past six years. DVD consumer
independence to
spending has opened a new market in the
rent and/or sell from
industry creating a sales concern for rental
the copyright holder
retail stores with the introduction of user
that includes no obstructions. The Copyright
friendly and cost saving rental kiosks, such as
Act further explains how digital media also
redbox. The self-service kiosks provide a $1-
applies (19).
per-night rental rate, having the brick-and-
For the past 22 years, the EMA has
mortar retailers running for their money (28).
placed a parental empowerment program
Blockbuster has started their own rental kiosk
amongst the sales of DVDs in the rental
program to affiliate themselves with the new
industry. The policy states that the sales of
technological advancement (30).
“R”-rated movies in the DVD rental industry
The developments of digital
are prohibited under the age of 17 without the
downloading and on-demand rental services,
consent of a legal guardian (19).
problems and opportunities have risen for the
An implication the DVD kiosk industry
DVD rental industry. Advancements such as
faces is consumer responsibility of age
video-streaming movie
appropriate legal consent using a self-service
rental, by companies like
kiosk. The kiosks prompts if one is over 17-
Amazon and Netflix,
years-old when it is applicable to a sale, but
provide in-home
have no way to identify and control the sales
convenience for renters. By obtaining a
to minors who agree to the terms and use the
subscription membership to the parent
service without a legal guardian. The sale of
company, video-streaming rentals are
an “R”-rated movie has then been made,
unlimited based on the company’s movie
which is against EMA policy. Another
libraries for one monthly fee. This technology
implication of the industry is the act of
creates another area for competition to the
consumers purchasing and unlawfully
DVD rental industry (21, 29).
7|Page
In November 2009, redbox announced
self- maintained, hence retailers avoiding
a test site in partnership with Sonic Solutions'
additional employee wages. Also because the
Roxio CinemaNow that allows frequent
devices are self-sufficient, they provide
redbox consumers to be given vouchers to
excellent customer service avoiding any
acquire digital downloading movie delivery
human error and satisfactory purchases (2).
providing more efficient customer service in
Growth will undoubtedly occur with
hopes of starting their own digital delivery
this self-service and video streaming
business (20).
movement but also in the works is the ability
Redbox and Blockbuster Express have
to digitally download and transfer movies on
taken advantage of the Blu-ray movement and
to SD cards or memory sticks. Rather than
have contributed the new disk form of DVD
having a physical
rental into their kiosks. Redbox started this
disk, renters will be able to download movies
service at the end of 2008 selling for the very
from a kiosk and plug them into their own
same price as a regular DVD at $1.
home entertainment systems (23).
Blockbuster Express rents Blu-ray for $2-pernight (22, 30).
The industry has found this new
opportunity to have long-term effects because
it decreases the chances of having physical
Growth Potential & Opportunities
Through ever expanding
problems with their products. The SD cards
will be effective in the sense that consumers
developments comes potential and
will no longer worry about inconvenient
opportunities for growth in the DVD rental
defects with the products such as nicks and
industry. Now is the time for redbox to be a
scratches. Also the
part of the market because the average
DVD kiosk retailer
consumer will enjoy the benefits of obtaining
will no longer have
a product faster, having 24-7 access, self–
the concern over non-
servicing convenience, and enjoying the use of
returned DVDs
technology on the rise. Not only is redbox
shortening their
cosmetically trendy, making it attractive to
supply. The
the consumer eye, but it also presents further
advantages of this
appeal for prospective retailers. The self-
new break will open
servicing kiosks allure additional foot traffic
even further outlets for consumer viewing like
into stores increasing its revenue with the
cell phones and other portal devices that are
extra service it provides. The kiosks are also
adapted to the SD card method (27).
8|Page
Client and Key Competitors
The evolving DVD rental industry is an
night price, Blockbuster Express has the
advantage of a loyal customer base
aggressive market with competitors vying for
versus redbox’s brand name which is
strong customer bases. Companies are
independent from its parent company,
attempting to meet the
Coinstar. Netflix also
consumer demands of
contends for a top spot in
convenience, up to date
the industry. Netflix
technology and
bypasses tangible
affordable prices
DVDs renting revenue to
through diverse means
provide online video-
such as brick-and-
streaming that has shaken
mortar stores, kiosks,
the DVD rental market
mailing services and online video-treaming.
since its commencement. Netflix’s in home
Since redbox has opted to develop its brand in
streaming concept replaces the hassle of DVD
the up-and-coming kiosk realm, its key
return dates and travel time of an alternative
competitors must also be comparatively
kiosk experience with the ability to download
innovative. Blockbuster Express and Netflix
movies onto personal computers or
are following the redbox innovation
televisions through internet connection.
movement.
Blockbuster Express, a self-service
kiosk branch of the parent company
Blockbuster, is
working to
increase its
number of kiosk locations. Although
Blockbuster Express and redbox kiosks share
the same premise of convenience and $1-per
9|Page
Redbox Brand Snapshot
-
-
Concept originated in 2002 within McDonald’s Ventures, LLC, which was working to identify new ways to
drive traffic to McDonald’s and provide added convenience to consumers
First market test launched in 2004 in Denver, Colorado-area McDonald’s restaurants
In November 2005, Coinstar, Inc. announced an agreement with McDonald’s Ventures, LLC, to invest in
redbox. The agreement gave Coinstar a 47.3 percent share of the company and made redbox a
separate company from McDonald’s
In February 2009, Coinstar announced its intent to purchase the remaining stake of redbox from
McDonald’s and other minority interest holders.
Parent company Coinstar, Inc. is headquartered in Bellevue, Washington
Coinstar, Inc. was founded in early 1991
Redbox’s top five accounts as of June 2009 are:
1) Walmart 2) McDonalds 3) Walgreen’s 4) Supervalu 5) Ahold
Blockbuster Express Brand Snapshot
-
Blockbuster was founded in 1985.
Blockbuster is headquartered in Dallas, Texas.
Blockbuster and NCR Corporation released
Blockbuster Express kiosks 2008.
Quickly rolling out to as many as 10,000
locations in 2010.
Can be found in some of the top grocery,
convenient and drug stores in the U.S.
Netflix Brand Snapshot
-
Netflix was founded in 1997.
Netflix is headquartered in Los Gatos,
California.
The company offers over 90,000 DVD
rentals for rent.
In 2007, began offering a movie download
and viewing by PC service
Reached 12.3 million subscribers by the end
of 2009
Exhibit 3, Sources: 10, 28, 29,
30, 49, 50
10 | P a g e
Size
Sales Revenue
Redbox is in the growth stage of the
PLC. At this point people are trying the
1600
product so the sales revenue and locations
1200
are continuing to rise. Competitors are also
1000
beginning to enter the market. However,
800
redbox entered the market after Netflix,
600
forcing Netflix to enter the maturity stage of
the PLC. In the maturity stage the
Revenue ($)
1400
Net Flix
Revenue in
Millions
Redbox
Revenue in
Millions
400
200
0
awareness of Netflix has reached its limit
2006 2007 2008 2009
and the sales have started to stabilize.
Blockbuster Express is currently
Graph 4, Sources: 4, 7, 8, 15, 16
*Blockbuster Express is expected to be profitable in 2011
entering the market in the introduction
Locations
stage. There is a considerably smaller
25000
locations and no
20000
Blockbuster
Express is
10000
Blockbuster
Express Kiosk
Locations
5000
currently trying
2006
0
to raise
awareness of its brand in order to encourage
potential consumers to try its new renting
Graph 5, Sources: 2, 9, 10,12, 13, 14, 15
*No physical location numerical data is available for Netflix
video-streaming
outlet. This is more difficult since they have
direct competition with redbox
Netflix Outlets
who is already established in the market.
Blockbuster Express has to find innovative
2010
statistics.
Redbox Kiosk
Locations
15000
2009
stable revenue
Kiosk Locations
2008
The first drive-up redbox
kiosks started at a
Denver, Colorado
McDonalds Drive-Thru 56.
number of
2007
Factbox:
Digital Playing
Consoles
Devices
Digital Video
Recorders
ways to compete with redbox through price,
LG Electronics
Microsoft’s Xbox 360
placement, promotions, and other
Samsung’s Blu-ray
Sony’s PS3
competitive strategies.
Roku
TIVo
Nintendo’s Wii
Exhibit 4, Source: 4
11 | P a g e
Redbox needs to ensure that it does
not lose customers to Blockbuster Express or
Netflix. Since Blockbuster Express is a more
direct competitor redbox needs to take
advantage of being in the market first in order
to retain the customers loyal to its brand.
Obtaining
customers
complications
of
because
Netflix
they
are
cause
already
committed subscribers.
Blockbuster Express is a direct source
of
competition
for
redbox.
Concerning
locations of the two DVD kiosk companies,
redbox
far
exceeds
the
opposition.
Blockbuster Express is just entering the
market and is unable to compete through
number of locations yet. They have a strong
and loyal customer base from the brick-andmortar foundation of the company which
could eventually make them more successful
than redbox. However, since redbox has
already managed to issue contracts with the
locations they currently occupy
it will be hard for Blockbuster
Express to gain the advantage
over redbox.
Netflix, Inc. is the world's largest
subscription service streaming movies, which
has accumulated more than 12 million
subscribers (5). Despite the fact that Netflix is
an existing company in the DVD,
video and game rental industry, redbox’s
revenue has soared past that of Netflix in the
past year. This shows that redbox is creating
serious competition in the market and
growing successful at a rapid pace. These
numbers are even more substantial
considering the major advantage of Netflix’s
subscriber base. It is more difficult for redbox
to make sales from these dedicated Netflix
users. Thus, reiterating the threat self-service
kiosks cause to pre-existing companies in the
market.
The DVD rental industry began to
enter the decline stage of the PLC during
2006 and 2007. The development of DVD
rental kiosks can be predicted to take the
industry back to the maturity stage of the
PLC. Redbox is currently in the growth stage
and is already beginning to positively
affect the industry. The introduction of
competitors will create a rise in DVD rentals
because it will cause lower prices resulting in
more purchases.
12 | P a g e
Forecast
Redbox and its competitors have ongoing plans to ensure growth and
expansion. Redbox and Blockbuster Express
are placing more kiosks in the market in
hopes of increasing brand awareness and
availability to consumers. Redbox exceeded
its year-end projections and now has more
than 22, 210 DVD rental kiosks (21) .
Blockbuster acquired competitor
DVDPlays 1,300 kiosks in the U.S. and
Canada and will revamp them with the
Blockbuster Express brand (21). Netflix is
currently in negations with movie industry
studios to secure access to more titles.
“Netflix has a powerful brand and slick
With the increasing number of
streaming technology. But to stay relevant
the company needs access to much more of
the studios' digital content” (44).
kiosks, brands are utilizing technologic
advancements such as the application
shown above to provide the consumer with
a way to locate thousands kiosks in their
area and also to view the DVD selection
available within each kiosk.
Factbox:
A typical redbox kiosk in a grocery store accounts for approximately 480 visits a
week, rental and returning. Of these trips, 52% are specifically to visit redbox 39.
13 | P a g e
Marketing Mix Evaluation
redbox
Product Price
Physical
Promotion
distribution
DVD rental
$1 DVD pernight
Grocery stores: Kroger, WalMart, Publix, Winn-Dixie,
Harris Teeter
Coupons, special offers
available with redbox
online sign-up
$1 Blu-ray
per-night
Drugstores: Walgreens, CVS
iphone applications
Fast-food restaurants:
McDonalds
Facebook & Twitter fan
pages
150 new releases
350 classics
No membership
required.
Reservation
capabilities online.
Blockbuster
Express
DVD rental
Gas stations: Exxon Mobile
22,000 kiosks
$1 pernight DVD
Grocery stores: Brookshire,
Food City, Bashas
900 available
Drugstores: Deane Read
No membership
required.
Reservation
capabilities online.
Netflix
videostreaming
$25
maximum
fee
Video streaming
17,000 available
titles
$2 per-night
Blu-ray
$25
maximum
fee
$9 monthly
unlimited
fee
Some new releases
Membership
required
Special offers available
with Blockbuster express
online sign-up
2,500 kiosks
Facebook & Twitter fan
pages
PC
One month free trial
Mac
Online codes
TV through licensed
contracted devices
Facebook & Twitter fan
pages
Digital Playing devices
Game consoles
Digital Video Recorders:
TiVo
Exhibit 5, Sources: 4, 24, 25, 28, 29, 30, 57
Redbox has several marketing mix
advantages over its competitors. Each of the
three competitors products are similar by
providing DVD consumers the same
merchandise, but redbox has given
consumers the most cost-effective options
with an all-around $1 per-day strategy. Also,
redbox provides a wider array of locations to
physically find its kiosks compared to
Blockbuster Express. In regards to
promotion, all three competitors offer a
number of outlets when considering
incentives.
14 | P a g e
Advertising
As technology continues to be a vital
part of the consumer’s life,
there are many
opportunities to enforce
brand identity with
companies such as redbox,
Blockbuster Express, and
Netflix via websites and other forms of
media. For example, each of these products
uses multiple means of
advertising through
Facebook, Twitter, and other
media. According to
Ad$pender, in 2008 redbox
spent $289.00 on its total
advertising while Netflix spent $67,414.20
on its combined areas of advertisement
(35). Its figures are notable because
although redbox does not
have high advertisement
expenditures or web
publicity, its product is
located where the desired
consumer can see them
easily. Redbox kiosks are
located outside of Kroger, Walgreens, Walmart, and McDonald’s franchises. Redbox’s
desired target market visits these locations
on a regular basis, thus providing
advertising without the need of a third
party. Each of the competitors has
established themselves on the internet with
web pages that provide
information to the potential
renter. Redbox’s homepage is
clear cut and uniformed. It has a
uniform maroon coloring and is
easy for the consumer to read and
digest (28). Both Netflix and
Blockbuster Express are also well put
together, but are cluttered
compared to redbox which can
make it appear less professional to
the desired consumer (29, 30).
Redbox and Netflix are more
established brands, thus
Blockbuster Express is playing
catch up in awareness.
Another way to measure product popularity
is through social media websites
like Facebook and Twitter.
Redbox has 43,783 fans on the
main Facebook group page. While
Blockbuster Express has only 266
fans (31, 33). In comparison,
Netflix leads with 86,925 fans
(32). Each of these products has a Twitter
page as well. In addition to internet
advertising, Netflix has commercials that
can be viewed on YouTube or Hulu. One of
the commercials with the
15 | P a g e
most views is about a father and son who visit
The official web sites of redbox and
a stranger’s house and watch a Netflix movie.
Blockbuster Express use a similar setup
In a sense, Netflix provides a way for
(28,30). Each highlight $1-per-night rental
strangers to connect (34). Redbox and
prices as well as the offer of a free DVD after
Blockbuster do not offer commercials for
signing up for weekly emails that provide
viewing in these locations. YouTube is an
updates and special
ideal advertising placement because the video
offers. Netflix is
itself is free advertising. There is also room on
currently offering a
the sides of actual web pages to have
free one-month trial of
advertising. Netflix purchases these areas to
DVD by mail and
advertise, especially when the site is
instant streaming
promoting either redbox or Blockbuster (38).
services (29). All three promotions are placed
Netflix has also used Facebook to promote its
on the forefront of the websites. In addition
brand which could explain why they have a
to its website, redbox is also exploiting cell
noticeably larger number of fans
phone usage by sending texts that advertise
on Facebook. With one simple click the
current deals (28).
consumer is transferred from the website to
the Netflix homepage. Facebook also has a
young target market
which makes it
profitable for Netflix to advertise there.
Netflix provides an easy delivery service for
consumers who do not want to leave home.
Promotion
Redbox and its competitors are
Public Relations
Redbox is actively using public
relations to keep its users informed about the
recent disputes with the movie production
industry. Redbox’s $1-per-night rental price
caused many movie production companies to
fear that a distribution deal with redbox will
result in lower profits. Attempts to prohibit
redbox from providing new releases to its
following an increasing trend of utilizing web
consumers by companies such as 20th Century
based and social media tools to promote their
Fox and Warner Home
brands. These promotions center around
Video are being met with lawsuits from
themes of price points, free trials, and
redbox. The official redbox site provides a
updates.
16 | P a g e
page of recent press releases that follow the
image for their latest kiosk brand Blockbuster
positive distribution deals with such
Express.
corporations as Summit Entertainment,
Paramount Home Entertainment, NCircle
Target Audiences
Redbox and its competitors are all
Entertainment, Lionsgate and Sony Pictures
targeting the
accompanying the preexisting struggles with
psychographic of
20th Century Fox and Warner Home Video
the convenience
(10).
seeking consumer
Blogging has also become a popular
Factbox:
44% of redbox users
attend college 53.
by promoting the
form of new media public relations. Both
idea of instant results without the hassle.
redbox and Netflix offer a blogging segment
Redbox and Blockbuster Express also narrow
on their official websites. “Redblog” is a movie
their audience by also targeting the price-
critique forum written by three authors,
conscious consumer through their $1-per-
whose profiles appear on the site, where the
night rental price, whereas Netflix appears to
public is able to read movie reviews as well as
be targeting families that are seeking at-
comment with their own opinions (45) . “The
home-entertainment and are able to commit
Netflix Blog” provides
to a stable payment plan. Also, Blockbuster
current updates about technology and various
Express is delving even further into the price-
movie news effecting Netflix and also allows
conscious consumer psychographic by placing
for the customers’ interjections (46).
its kiosks on college campuses (47). Another
“The Blockbuster Corporate” web-page
provides a news and public relations section
important psychographic of all three
competitors is that consumers are more
that enables the company
technologically savvy. Kiosks and instant
to announce various
video-streaming are fairly new developments
updates such as new
in the DVD rental industry and therefore
releases, pre-order options of new releases,
require an audience willing to experiment
and quarterly fiscal reports for the parent
with previously unfamiliar technology. They
company (48). When compared to redbox
are targeting this segment by advertising
and Netflix, Blockbuster is lagging
“innovation” through hotspots such as
in communication advancements with its
Twitter, Facebook and various blogs.
customers, resulting in an underdeveloped
17 | P a g e
Comparative Analysis
The idea of kiosks is a cutting-edge
breakthrough in the DVD rental industry.
Redbox is the most impactful company in the
current market. There are several traits of
redbox, Blockbuster Express and Netflix video
streaming that will

and negative ways.
Some key deciding


strengths in these areas;
however, its
attempting to close the
employee/customer checkouts. Also, while
both its competitors offer 24-7 convenience,
the broader base of kiosk locations gives
redbox an edge.
Cost-effective compared to Blockbuster
significantly larger
Express kiosks
number of kiosks
Blu-ray fees and Netflix’s
available at grocery and
convenience stores such
No membership fee commitment compared
to Netflix video-streaming.
location and pricing.
competitors are
and errors that accompany
monthly subscription.
factors for customers
Redbox has definite
time. These kiosks also eliminate the hassle
Redbox has a
market in both positive
include convenience,
return the DVD at a more convenient
Redbox’s Benefits
influence the
companies in the
hindrances for the customer, allowing them to

gap.
redbox
as Wal-Mart, Kroger
and Walgreens.
Another area in which
Availability of redbox locations far exceed
redbox is at the
the number of locations that Blockbuster
forefront of the industry
Express has distributed.
is through its
Redbox’s variety of promotional tools
positioning as the
surpasses Netflix video-streaming and
economically friendly
rental company.
Blockbuster Express.
Redbox offers a $1-per
Redbox provides
customer convenience,
which is one of the primary premises of the
self-service kiosk industry. It is
accomplishing this through 24-7 kiosks that
are available beyond typical store hour
constraints. The extended hours and
elimination of return rates causes fewer
night rental price. This
system allows the customer to determine their
charges based
on when they return the DVD. Despite all its
advantages, redbox does lack the established
customer base and wide DVD variety that its
competitors possess.
18 | P a g e
Blockbuster Express
Blockbuster Express is redbox’s most
similar competitor. It
$1-per-night rental
is also confined to the single device that the
Redbox’s Weaknesses
also offers convenient
24-7 kiosks as well as
available in any internet connected space, but

DVD selection available per redbox kiosk
movie was downloaded to
thereby losing the mobility
that a DVD possesses.
While it addresses the
pricing. Blockbuster
is approximately only 55% of what a
Express’ strength is the
Blockbuster Express kiosk can hold.
encounters limitations
Majority of redbox kiosks are placed
because only 12% of this
from its parent
inside locations, such as grocery
online library is
company, Blockbuster.
stores, making 24-7 availability limited
available for
brand loyalty inherited

Consumers may be
more comfortable using
this brand because they
to only outside kiosk locations.

Since online streaming is not an
demand for convenience, it
streaming (57)
Also, many
customers have
are already familiar with
available option with redbox, the
the company.
company cannot reach additional
flaws with video
customers with the service that Netflix
streaming making it
does provide.
less desirable despite
Advertisements for redbox are
heightened convenience. In
However in
comparison to redbox,
Blockbuster Express is
lagging in its number of
kiosk locations, offering
less availability to its

extremely limited in comparison to
Blockbuster and Netflix.
customers which could
be considered a weakness.
Netflix
Netflix offers a different approach
than redbox and Blockbuster Express with its
noticed quality
regards to price, Netflix
rental system requires a
monthly subscription for
$9.00 which includes
unlimited downloads for that period. While
Netflix’s higher price may discourage frugal
customers, it promotes a more loyal customer
base.
in-home streaming of movies. Netflix
streaming has the advantage of being
19 | P a g e
Movie Renters
In the past few years, researchers have
studied the spending habits of DVD rental
users. In general, Americans who rent movies
more often are more likely to see films within
the first two weeks of release (37). Simmons
went on to report that from those who watch
movies in the first two weeks, they will then
rent from Blockbuster, Hollywood Video, and
Netflix (37). Redbox, in particular, has been
steadily increasing its amount of rentals. Its
target market,
according to NPD
demographic, reports
that 52% of redbox’s
consumers are female,
63% have at least one
child, and 51% have a
household of at least
four people (39). These figures are parallel to
the product placement that redbox uses. By
placing its kiosks outside of regularly visited
stores such as Wal-mart, Walgreens, and
Kroger, redbox draws families and generates
business for the retailers as well (39). Redbox
provides an easy and convenient one-stopshop for families on the go to rent a movie for
one night, or more if they wish (36). The way
redbox allocates their pricing is profitable
because two nights
of redbox is still cheaper than a new release at
Blockbuster. In the past year, the amount of
people renting from DVD kiosks has grown by
almost 50%. According to Simmons, redbox
and its dvd kiosk competitors are keeping
pace with Netflix’s rental growth (36).
Along with redbox, Blockbuster
Express is installing self-service kiosks in
grocery stores, drug stores and other
locations. The parent company predicts
Blockbuster Express will have up to 10,000
working kiosks by the end
of 2010.
While Blockbuster
Express was growing, the
foot traffic of Blockbuster
dropped 16% in the last
year. In addition to less
store action, there was
relatively no noticeable
increase of online renters, which then lead to
the many store closings (36).
While Blockbuster was not improving,
Netflix was growing. As Simmons Research
reported, “As of October 12, 2009 Netflix.com
had almost three times as many as monthly
visitors as Blockbuster.com” (36). Netflix is
the third most popular way of renting among
consumers who watch movies within two
weeks of opening weekend (37).
20 | P a g e
DVD Kiosk Customer
The population of 18-24 year olds in the
According to the 2007 TNR
Survey Findings:



Grocery retail-based DVD rental kiosks have broad
consumer appeal among men and women of all ages
and life stage classifications, especially those 30 to 54
years of age and families with children.
The rental kiosk value proposition to consumers is
simple and compelling, driven by both lower movie
rental costs and unmatched convenience -- the "single
trip" benefit.
Reflecting the growth potential for the kiosk market,
awareness is still developing -- approximately 1/3 of
all consumers surveyed indicated awareness of the
self-serve DVD kiosk concept, but only 5% of the
respondents had rented through one. Awareness and
rental usage in more developed markets is
substantially higher.
 Kiosk adopters would most likely migrate from
Exhibit
7, Source:
52 and mortar" rental sources to the
traditional
"brick
grocery or rental kiosk.

Over 1/3 of DVD renters are frequent grocery
shoppers, many visiting their grocery store on a daily
basis.
U.S. in the year 2010 is 30,163,000 and
increases annually until it peaks in 2013 at
30,575,000 people. For the next four years
the population of 18-24 year-olds will
continue to rise. Consequently, redbox will
most likely remain in the growth stage of the
PLC during this time. In the year 2014, when
the population of the age group begins to
decline redbox could expect to enter the
maturity stage of the PLC.
During this decline period, redbox should
tailor its selling strategies to align lifestyles of
its target market. Lifestyles of the average 1824 year olds tend to be fast-paced and
economically restricted. For example, redbox
could execute two-for –one rental periods.
Target Market Size
This way redbox can be reassured of gaining
profits even at this stage of decline.
Total US Population
of 18-24 Years Old
30,800
30,600
Total US
Population
of 18-24
Years Old in
Thousands
30,400
30,200
30,000
29,800
2010 2012 2014
Graph 6, Source: 17
21 | P a g e
Target Market &
Entertainment-Related Behavior
Movie Genres
Rented on DVD
%
Action/Adventure
Animation
Comedy
Drama
Family
Horror
Musical
Romance
Sci Fi
Suspense
Thriller
Urban
Online Activites in
the Past 30 Days
Download Music Files
Play/Download
Online Games
Watching Streaming
Video (TV/MVIE-LKE
BRDST)
Rent Video Games
Usually Rent Video
Games
39
14
42
31
30
21
6.62
20
13
7.97
19
14
60% of the target market that is utilizing the
internet to download or stream their daily
usage items such as music, online games and
TV. This indicates that the target market is
comfortable and willing to explore innovative
technology that meets their wants.
Outlook for redbox
Through the consumer analysis
research, the target market of 18-24 year olds
would be a successful segmentation to pursue.
The outlook is desirable because of redbox’s
predicted steady growth and maturity stage of
the PLC for the next several years. According
to the its marketing mix, advertising and
29
21
9.77
promotional tactics will be most beneficial in
order to gain 18-24 year olds brand loyalty for
when redbox enters the maturity stage. This
desired consumer is a part of the most highly
connected age group (26). The number of
9
Exhibit 9, Source: 6
According to Exhibit 9, redbox should
concentrate on providing more comedy and
action/adventure DVDs in its kiosks since
these are the two most rented genres by the
target market of 18-24 year olds. The data
also denotes that redbox should investigate
online rental options as implied by the nearly
users for social media outlets that redbox has,
such as Facebook and Twitter, skyrocket
amongst this target market and redbox should
use them constructively. Also, with the
multitude of
physical
distribution
locations that
the target market comes across, the lucrative
product will be profitable. With the use of
technology,
22 | P a g e
redbox can take

advantage of DVD
Has the target market grown up in a
movie-renting household?
product distribution

Is movie night a family affair?
with its cutting edge

What makes this desired market choose
equipment and the use
of promotional tools to
one genre over another?

draw in this particular audience and have
them as brand loyal customers.
Does the target market like snacking while
watching movie rentals?

Does target market want a one-stop,
convenient DVD rental pickup that also
Next Steps
fulfills multiple needs?
Research is necessary to uncover why

Rent alone? Or in groups?
Netflix and Blockbuster customers have not

Is renting associated with activities?
switched to redbox and then attempt to
Cooking? Dating? Exercise?
capture those consumer interests. In order to
gain further insight into the 18- 24 year old
market and their beliefs, attitudes and
decision- making process related to renting
movies, we recommend that further research
address the following:

Spending behaviors of target market

How often does the target market watch
movies? Weekly? Monthly? Daily?

How would target market prefer to obtain
movie rentals? Self-serve? Online?

What are 18-24 year olds means of
transportation? Walking? Bus? Personal
car? Friends?

What time of day does target market
usually make the decision to rent movies?
Morning? Noon? Evening? Midnight?
23 | P a g e
Overview
In the spring of 2010, an
Advertising/Public Relations Research
Methods class at the University of Tennessee
decided to uncover the inner thoughts of the
young adult DVD renter. The subsequent
section of the project will unearth the
common thoughts, feelings, reasoning, and
gender differences of the redbox target market
through personal qualitative interviews given
by each group
member. Each
interview, which can
be seen in Appendix
I, was given to a
member of the 18-24
year old target
market who was not
a fellow advertising
or public relations
major, or was aware of the topic project. In
order for the process to be unbiased, each
group member did not reveal the client until
the end of the interview.
The goals of the quantitative research
were to identify the target market, classify the
factors that motivate purchases, what are the
unique characteristics of each renter, and
The Main Areas of Questioning:
• How participants decide to rent a movie and
what influences them
• What rental outlets participants use and why
it’s important
• If the participant has heard of or used any
DVD kiosks
• If the participant has used redbox and if so,
their level of satisfaction
These goals were accomplished by
asking questions concerning
how participants decided to
rent a movie, refer to
Appendix 1, if there was any
emotion linked to the
decision and their awareness
of DVD kiosks, especially
redbox. Interviewers were
not seeking number
responses as much as deeper
feelings and personal
experiences. They achieved this by asking
participants how and why by digging deeper
into stories that were shared.
Six of the participants were students
while four were non-students. There were an
even split of five males and females. All of
them were between the ages of 18-24.
determine if there are any problems with the
category, client or competitors.
24 | P a g e
Results
Deciding how/ when to Rent a Movie
The decision process for renting
movies was commonly associated with certain
times or activities. The majority of males and
females interviewed said that they most often
rent movies weekends, when they do not have
many plans or when they have time to relax.
Some males
mentioned their mood
influences them when
deciding when to rent a
movie and especially
what kind of movie they
wanted to rent. A 24year-old male said,
“When I decide to rent a movie it always
depends on my mood. I figure out if I am in
the mood for a comedy, an action film, or
romantic comedy and then I go from there.”
One male stated that marketing for
new releases strikes his attention and usually
tempts him to rent out of curiosity. Social
reasons is the most common reason that
females rent movies. Other females responded
that they rent movies when there is nothing
they like on TV.
Many of the respondents also rent
movies when they are on dates or eating with
a group of people. Two common foods
mentioned were popcorn and pizza. An
approximately equal amount of people make
decisions about renting a movie alone as those
whose decisions involve other people.
When asked what outlet they usually
rent from, most respondents replied redbox
and mentioned renting at Blockbuster in the
past before using redbox. One male and one
female responded that they used Netflix. The
male used videostreaming through
his Xbox and the
female used the video
streaming through
her television.
Rental Outlets
Several respondents said they liked
redbox because it was more convenient and
cheaper than its competitors. Females seem to
commonly define convenience as quick or
easy. Males placed emphasis on the fact that
redbox was close to places they usually
shopped, thus more convenient. However,
both genders also implied that convenience
was based on the distance from their place of
living and the 24-hour a day access.
As stated earlier, Blockbuster was the other
venue mentioned most. The respondents said
they used Blockbuster mostly because it was
familiar. The majority said the main reason
they switched to redbox was to avoid late fees.
25 | P a g e
When asked why the payment plan effects his
because it’s convenient to be at a place where
decision, a 21-year-old male said he liked
I can get multiple things and
being in control of how much he pays, “It
not have to stop at another
makes me choose redbox over Blockbuster
store to pick up a movie.”
because I’m in control of the payments rather
This statement could be an
than the upfront five dollars.”
indication that some redbox
Some
customers would not rent
people mentioned
from redbox if they were
that they did like
not located at some of the
the larger selection
places they normally
that Blockbuster
shop.
offers but still said
redbox was
DVD Kiosks
preferred.
All of the 18-24
The locations,
year olds interviewed
speed, and cost of
renting movies were all important to the
respondents. When asked why these things
mattered to them, the majority of males and
females said that the one dollar cost is a
drastic difference from five dollars. A 19-year
old male said, “If you are going to get the
same product, you always try to get it at the
cheapest price. It’s simple economics.” Many
males also mentioned that they were tight on
money since they were currently in college.
Concerning the importance of location, a 23
year-old female said, “I rent from redbox
generally when I come across it while at Walmart or Walgreens. I guess that’s important
knew of redbox. Two
females and one male mentioned other DVD
kiosks brands they have seen but they have
never actually rented a movie from them. The
kiosks mentioned included Blockbuster
Express, Kroger, and DVD Play. However, all
of them implied they only know of one of
these kiosk locations.
When asked if DVD kiosks were for
somebody like them, everyone said yes.
Again, most often males and females
mentioned convenience in reference to the
quick process, closeness and number of
locations and 24-hour availability as the main
reasons.
26 | P a g e
Since college students are usually
maintaining a hectic schedule, it’s no surprise
generation and also because the selection
limits the classics.”
that several respondents prefer kiosks
because they find it quick and easy. For
example, a 24 year-old female states, “DVD
Redbox
All of the respondents have tried
kiosks are definitely for someone like me.
redbox. When asked what prompted them to
They are so accessible and easy. People my
try redbox, four out of the five males, as well
age are always looking for ways to do things
as one female, said location. Most of their
easier and kiosks make it easier on us.”
answers were similar to what this 21-year-old
Many males and females said that the high-
male said. “The first time I used it I was
technology made
coming out of Wal-
them feel DVD
mart with my friends
kiosks were good
and we saw it and
for people their age.
decided to try it.”
A 21-year-old male
Another male
said, “It was cool to
said that he decided to
run these machines yourself, you know like
use redbox for the first time because he was
the self check-outs at the grocery store.”
curious.
Also, some said that they liked the fact
One female also said that she began
that they don’t have to interact with people
renting from redbox because of the amount of
when they rent movies from a kiosk. A 19-
locations and out of curiosity as well. She
year-old female said, “ I like to go in and get
went on to say, “They are all over the place in
out with what I need without having to deal
my hometown and I thought it would be
with people that I don’t have to.”
interesting to try one
A 23-year-old female believes that the
day.” However, there
limited selection of the kiosks is another
was much less
reason why they are most appropriate for her
consistency with the
generation. She said, “I would probably not
females as to why
recommend them to my grandmother because
they tried redbox. Price and friends were two
of the selection. The movie selection that is
of the other responses. When evaluating their
provided in kiosks I think may be
experience, all of the respondents were
inappropriate for my grandmothers
27 | P a g e
“If I’m ready to get home and just
pleased with their redbox
came to grab a quick movie , I don’t want to
experience. The two
stand there while you talk to
complaints from
your mom about the new movies that just
customers concerning
came out or fight with your kids about what
their experience were not
movies they can or can’t have for whatever
directly caused by
reason. The worst is when old people are
redbox.
trying to use it for the first time and don’t
A 24-year-old male said he had a good
understand how to use it. Instead of asking
experience overall but had one complaint
for help or stepping aside they just stand
about the other customers using redbox.
there looking at it.”
28 | P a g e
Another complaint came from a 19year-old female. “I love redbox, and my
experiences are all good except the one time
I had to buy the DVD since I forgot to return
it.” However, this is something that could
happen with any other venue and it would
also cost more.
After asked about what prompted
them to use redbox and how their experience
was, they were asked what they liked and
disliked about redbox. The answers to these
questions were repetitive of those that were
mentioned in the rental outlets portion
because so many of the respondents said that
redbox was their most common outlet for
renting movies.
Key Insights
1. Deciding How/When to Rent a Movie
 Males: bored or to relax
 Females: social reasons
 Both male and female:
weekends
 Most individuals rent from
redbox and occasionally
Blockbuster and Netflix
2. Rental Outlets
 Convenience- quick and easy
vs. one-stop-shop
 Distance from home and 24
hour access
 Late fees vs. selection
3. Who DVD Kiosks are for
 Everyone in the target market
(18-24)
4. Redbox
 Half of sample tried due to
convenient location
 Overall good experiences
except for poor selection
Exhibit 10
29 | P a g e
Method
Sample Profile
Through consumer insight, the
population of 18-24 year olds has been noted
as the standout target market for redbox.
This is the chosen sample profile based on the
relationship between what redbox provides
and the attitudes and behaviors desired by the
consumer segment for products and services.
This profile was analyzed based on a
sampling fr ame, a description of how (or from
where) the sample was acquired.
The sample size included approximately 80
completed surveys based on participation of
an equal amount of men and women and
approximately 20-25 non-students.
In order to be included in the sample
size there was a screening process. The
qualifications required the sample to be
between the ages of 18 and 24 and also have
rented a movie in the past 30 days. The
sample did not include anyone who was
interviewed for the Qualitative Research or
communications or marketing students. Also
the sample excluded anyone outside the age
range of 18 and 24 or anyone who has not
rented a movie in the past 30 days.
Research Objectives
Survey Question
Number(s)

When was the last time 18-24 year olds rented a
movie?
1, 2, 3

What influences 18-24 year olds in their choice of
where/how to rent a movie (rental channel)?
4

Which influence is most important?
4a, 4b, 5

Which of the five main rental channels has 18-24
year olds ever used?
Used in the last 30 days?
For each of the main five main rental outlets, will 1824 year olds usage increase, decrease or have no
change in the next few months?
Which brand of movie rental have they used the
most in the past six months?
6, 7

What brands of DVD rental kiosks have they ever
used?
10, 10a


Attitudes about DVD rental kiosks
If they have never used a DVD rental kiosk, why not?
10b, 10c

Attitudes about redbox
11

How do these questions differ based on gender and
student status?
12, 13, 14



8
9
30 | P a g e
Data Collection Method
sections, 14 questions, which included 65
The process used to conduct the study
variables. The survey, which can be found in
was a self-administered survey. The method
Appendix II, was approximately five minutes
was a non-probability sampling,
long. The subset method of a self-administered,
in which the likelihood of being
non-probability sampling survey that was
chosen is unknown because
chosen was subject to both strengths and
sampling unit is selected at the
weaknesses.
interviewer/researcher's
The strengths to this approach contain
discretion. The data collection tactic
the option for the sample to have
administered was through convenience
completed the survey based on his or her own
sampling, where the sample was selected based
timely manner. Also, based on judgment, the
on the researcher’s judgment that the person is
chances of choosing the qualified sampling
representative of the 18-24 year old population.
profile increased in comparison to a probability
The researchers selected locations
sampling method. In addition, the strengths of
where they encountered frequent amounts of
this design was its clarity. The survey is legible
18-24 year olds. The locations chosen were a
and organized.
local university and workplaces, which were
The weaknesses to this technique are
cleared by a manager. Selected, were
subject to not possess the advantages of being
individuals that self-administered a five minute
completely random, such as the elimination of
survey in exchange for a small reward. Surveys
bias by the interviewer. In addition, the
were dispensed on the same weekday to allow
survey was open to misinterpretation by the
no bias.
sample, as opposed to an intervieweradministered approach. The sample may have
Survey Design
Survey Method
The survey began by asking broad
questions about consumer renting habits, DVD
rental outlets and narrowed into questions
specific to redbox. The self-administered survey
was composed of four
also failed to provide all findings due to an
incomplete survey, whereas in an intervieweradministered approach completion of answers
would be urged. A further possible weakness
was that the seven pages may have appeared
visually lengthy to a prospective individual
causing them to have abandoned the survey.
31 | P a g e
Objective 1: The last time the target market rented a movie.
Table 1
The Last Time 18-24 Year Olds Rented a Movie
1 Week Ago
2 Weeks Ago
3 Weeks Ago
About a Month Ago
Frequency
30%
25%
22.5%
22.5%
Number of Times Rent Movie Per Month
Less than Once a Month
1 Time
2-3 Times
4-5 Times
More than 5 Times
Frequency
26.3%
31.3%
31.3%
7.5%
3.8%
When Target Market Rents Most Often
On the Weekends
During the Week
Frequency
77.5%
22.5%
Table 2
Table 3
Discussion
Over half, 55%, of the target market has rented a DVD within the past two weeks (See
Table 1). Concerning the number of times that one rents a movie per month, our research shows
that the majority, 62.6%, of the target market rents one to three times a month. However, over a
quarter of the respondents said that they rent a movie less than once a month (See Table 2). It
could be assumed that this finding is a result of the declining US economic status since 2008
mentioned in the situation analysis (See “Economic Environment”, Pg. 6). In the qualitative
surveys there was also evidence that many of the respondents from the 18-24 year old
32 | P a g e
demographic were more conservative with their money and did not have much leisure time.
This is proven by the research, 77.5% of respondents that stated they most often rent DVDs on
the weekends (See Table 3). On the other hand, 22.5% said they usually rented DVDs during the
week. The most common day of the week mentioned was Tuesday with 8.8%. This could
possibly be due to the lack of work load presented early in the week and perhaps using it as a
way to relax before having to complete work due at the end of the week.
Objective 2 and 3: What Influence the Target Market
Table 4
Degree of Influence
Friend
Significant Other
Roommate
Family
Media
1
1.3%
16.3%
10.0%
6.3%
12.5%
2
5.0%
1.3%
5.0%
12.5%
2.5%
3
11.3%
12.5%
15.0%
18.8%
18.8%
4
32.5%
20.0%
27.5%
23.8%
28.8%
5
20.0%
20.0%
11.3%
8.8%
7.5%
Mean
3.9
3.4
3.4
3.2
3.2
5
13.8%
6.3%
6.3%
Mean
4.3
3.6
3.5
*71.3% respondents stated that their rental decision is usually influenced by others.
*1 being no influence and 5 being strong influence. ***Enter in text to mention coworker
Table 5
Reason to Rent
Interest in Movies
Relaxation
Boredom
1
0%
2.5%
1.3%
2
0%
3.8%
6.3%
3
3.8%
3.8%
6.3%
4
13.8%
13.8%
10.0%
*28.8% said that they were not influenced by others, therefore answered what prompts them to rent.
*1 being no influence, 5 being strong influence
33 | P a g e
Table 6
Most Important When Choosing Rental Outlet
Distance Needed to Travel
Price
Selection
Membership
Return Policy
Late Fees
Technology
Hours of Operation
Time Spent on Rental Process
Frequency
33.8%
32.5%
12.5%
6.3%
6.3%
3.8%
2.5%
1.3%
1.3%
Discussion
The research shows that the most influential people to the target market while making a
DVD rental decision are their friends with an average of 3.93 (See Table 4). However, that is not
a very strong influence because on this particular scale three means the respondent felt that the
influence was neutral. Out of the people that said others do not influence their rental decisions,
the leading reason is interest in movies with an average of 4.32 (See Table 5). Over 65% of the
sample felt that distance needed to travel or price were the most important factors when
choosing a DVD rental channel (See Table 6).
The concern can be linked back to the decline in
the US economy since 2008 as well. The
importance of distance needed to travel puts an
emphasis on number of locations as another
source of competition for the industry (See
Graphs 4 & 5, Exhibit 4, Pg.11).
34 | P a g e
Objective 4 & 5: Usage of Rental Channels
Table 7
Used Rental Channel
Frequency
Ever Used
Frequency
Past 30 Days
Self- Service Kiosk
Retail Location
Video Streaming
Online Rental
Mailing Service
75.0%
98.8%
43.8%
40.0%
30.0%
63.8%
38.8%
22.5%
15.0%
15.0%
Discussion
When asked what rental locations they have ever used, the largest portion of the sample,
98.8%, has used retail locations. However, only 38.8% of the respondents have used them in the
past 30 days (Table 7). This is most likely because retail locations were the only way to rent
movies before the other channels developed. It is also proof that retail locations like
Blockbuster are in the decline phase of their PLC (Industry Overview) and thus is innovating
new ways to compete within the market. 75.0% constructs the second largest amount of
respondents. These people stated that they have used self-service kiosks before and 63.8% said
that they have used one in the past 30 days
(Table 7). Concerning the product life cycle,
this proves that self-service kiosks are in the
growth stage. Online rentals, mailing services
and video streaming are all newer ways to rent
than retail locations but older than self-service
kiosks. Over the past 30 days, these three
channels include 52.5% of the respondents.
This finding is crucial because it shows that
retail locations are currently the least popular
way of renting DVDs.
35 | P a g e
Objective 6: Expected Usage in the Next Few Months
Table 8
Rental Channel
Self-Service Kiosk
Video Streaming
Online Rental
Mailing Service
Retail Locations
1
11.3%
15.0%
12.5%
16.3%
26.3%
2
0%
1.3%
5.0%
3.8%
11.3%
3
40.0%
66.3%
68.8%
70.0%
48.8%
4
26.3%
12.5%
8.8%
3.8%
10.0%
5
22.5%
5.0%
5.0%
6.3%
3.8%
Mean
3.5
2.9
2.9
2.8
2.5
*On a scale of 1 (decrease usage) to 5 (increase usage)
Discussion
The findings for expected usage is complimentary to the findings of the respondents who
have used the channels ever and in the past 30 days. With an average of 3.49 self-service kiosks
are expected to have the most increase in usage in the next few months, in fact they are the only
channel that shows any increase at all. Retail locations are expected to have the most decrease in
the near future with an average of 2.54 (Table 8), further proving that self-service kiosks are in
the growth stage of the product life cycle (See Pg. 3).
Objective 7: Brand Used Most in the Past 6 Months
Table 9
Brand
redbox
Frequency
47.5%
Blockbuster
Netflix
Blockbuster Express
Movie Gallery
Hollywood Video
Amazon On-Demand
18.8%
16.3%
3.8%
3.8%
2.5%
1.3%
*Mention Comcast On-demand in discussion
36 | P a g e
Discussion
The brand that was used the most by the sample in the past six months was redbox,
47.5% of the respondents indicated this. Netflix and Blockbuster make up the second largest
portion of the respondents with a combined 35.1% (See Table 9). The solidifies the prediction
from the competitor analysis that Netflix, Blockbuster Express and redbox are the leading
competitors in the DVD rental market (See Pg. 4). Even though the statistics are based upon
Blockbuster’s retail locations, the usage of self-service kiosks are likely to rise. Thus, due to
brand loyalty Blockbuster Express could become a leader in self-service kiosk competition (See
Table 8).
Objective 8: Brands of Self-Service Kiosks Ever Used
Table 10
Brands
redbox
Frequency
75.0%
Blockbuster Express
DVD Now
7.5%
2.5%
*Out of 76.3% of respondents that have used a self-service kiosk.
Discussion
An overwhelming 75% of the sample said redbox was a brand of self-service kiosk that
they have used (See Table 10). Blockbuster and DVD Now are not even close in the comparison.
However, this explained by Blockbuster Express’ current status in the introduction stage of
product lifecycle. It is expected for redbox to have higher rate of usage since it is an established
brand in the growth stage of the product life cycle (See Exhibit 3, Pg. 9).
37 | P a g e
Objective 9: Attitudes About Self-Service Kiosks.
Table 11
Area of Satisfaction
Price
Hours of Operation
Distance Needed to Travel
Technology
Time Spent on Rental Process
Return Policy
Late Fees
Selection
1
0%
0%
0%
0%
0%
1.3%
0%
3.8%
2
2.5%
1.3%
1.3%
1.3%
5.0%
3.8%
8.8%
13.8%
3
2.5%
7.5%
10.0%
16.3%
10.0%
15.0%
26.3%
23.8%
4
13.8%
17.5%
28.8%
25.0%
32.5%
23.8%
20.0%
25.0%
5
55.0%
47.5%
33.8%
31.3%
26.3%
30.0%
18.8%
7.5%
Mean
4.6
4.5
4.3
4.2
4.1
4.1
3.7
3.3
*Out of 76.3% of respondents that have used a self-service kiosk.
*On a scale of 1 (very dissatisfied) to 5 (very satisfied)
Discussion
According to the surveys, the area with the most satisfaction for self-service kiosks was
price with an average of 4.64 (See Table 11). This finding is symmetrical with the qualitative
surveys; there was a collective agreement that those who used self-service kiosks did so because
they are less expensive. The importance of price reflects back to the client profile stating that
redbox’s target audience is price-conscious consumer (See “Target Audiences”, Pg. 16). Another
area of high satisfaction was hours of operation, with an average of 4.51%. As discussed in the
competitor analysis this is a strong advantage that self-service kiosks have over retail locations.
This gives more explanation behind the results of Table 7 and Table 8. Consumers were least
satisfied with the selection of DVDs at the self-service kiosks with an average of 3.25% (See
Table 11). The qualitative survey results also found dissatisfaction with the selection of selfservice kiosks compared to retail locations (See “DVD Kiosks”, Pg. 29). In contrast, the target
market still chooses to use self-service kiosks over retail locations. It can be interpreted from the
results that the price and hours of operation is more important when deciding where to rent
DVDs to the sample than selection is.
38 | P a g e
Objective 10: Usage and Attitudes of redbox
Table 12
Area of Satisfaction
Price
Hours of Operation
Distance Needed to Travel
Time Spent on Rental Process
Return Policy
Technology
Late Fees
Selection
1
0%
0%
0%
0%
0%
0%
0%
3.8%
2
1.3%
1.3%
1.3%
1.3%
7.5%
1.3%
11.3%
15.0%
3
3.8%
7.5%
10.0%
13.8%
12.5%
20.0%
26.3%
21.3%
4
18.8%
22.5%
28.8%
37.5%
23.8%
26.3%
18.8%
25.0%
5
51.3%
43.8%
35.0%
22.5%
31.3%
26.3%
18.8%
10.0%
Mean
4.6
4.5
4.3
4.1
4.1
4.1
3.6
3.3
*Out of 75% of the respondents that have ever used redbox.
Discussion
The findings for the areas of satisfaction for redbox are similar to those of self-service
kiosks in general. This strengthens the finding that out of those that have used a self-service
kiosk, the majority have used the
redbox brand (See Table 10). There
is less than a .06 difference
between the means of price, hours
of operation and selection when
comparing self-service kiosks to the
redbox brand (See Table 11 and 12).
Therefore, we can apply the same
conclusions as objective 9.
39 | P a g e
Influences on Rental Decisions by Gender
Table 13
Women
(Mean)
Men
(Mean)
t-value
Sig.
To what degree does your significant other influence
your rental decision?
3.7
3.0
1.803
.077
To what degree do media influence your rental
decision?
3.6
2.9
1.912
.061
To what degree does boredom prompt you to rent a
movie?
3.1
3.9
-1.086
.085
Question
*On a scale of 1 (no influence) to 5 (strong influence).
Discussion
The research shows that women are more influenced by their significant others when
deciding to rent a DVD with an average of 3.74 compare to the men’s average of 3.03 (See Table
13). The qualitative research also supported this finding; women mentioned often associating
movies with date nights. Women are also more influenced by media than men. This could be
due to the constant marketing efforts towards women via magazines, specialized television
networks. The females that participated
in the qualitative research also stated
that award shows could influence their
rental decisions; such shows are often
focused toward the female audience as
well. Boredom prompts men with an
average of 3.91 to rent DVDs more than
women with an average of 3.08 (See
Table 13). This could be related to the
more social
40 | P a g e
lifestyle of 18-24 year old females versus the more secluded lifestyle of 18-24 year old males (See
“Key Insights”, Pg. 30). The lifestyles of males are also reflected in the research concerning the
expected usage of rental channels in the next few months. Statistically, men were more likely to
increase their usage of online rental services with an average of 3.13 compared to the average of
women at 2.65.
Rental Outlet Used in the Past 30 Days by Gender
Table 14
Women %
Men
%
ChiSquare
Sig.
Rented Online
25.0
75.0
3.529
.060
Mailing Service
16.7
83.3
6.28
.012
Rental Outlet Used in the Past 30 Days
*Statistics based on the respondent using the channel in the past 30 days
Discussion
In the past 30 days men have rented through online rental services three times as much
as women. Also, they are over five times more likely to rent movies via mailing services than
women (See Table 14). This again can be related back to the findings that men are more likely to
increase their usage of online
rental services in future. It is
possible to conclude that men
prefer to rent from their place of
residence opposed to women,
thus giving better insight into the
gender differences concerning the
definition of convenience (See
Rental Outlets, Pg. 27).
41 | P a g e
Recommendations
Females Influenced More by Their
Significant Other
Segmentation of the 18-24 year old
a 3.03 on the same scale. Redbox should
utilize this information to appeal to this more
tapered target market of 18-24 year old
females by incorporating “Date Night at
target market is a standout recommendation
Home” themes into advertisement and
for redbox. One of the segments that surfaced
promotional campaigns. Redbox also has the
from the quantitative data focuses on females
opportunity to expand the “Date Night at
and the findings that they are most influenced
Home” theme to
by their significant other when renting a
include the
movie. The data from survey
concept of “dinner
research indicates that on average women rate
and a movie” by
the influence of their significant other
exploiting the
concerning their rental decision as a 3.74 on a
preexisting relationships that exist between
5 point scale (1 being no influence and 5 being
its parent company, Coinstar, and various
strong influence). As opposed to men, who
restaurant venues to create promotional
rated the influence of their significant other as
42 | P a g e
alliances (59). A single coupon that combines
interview with a 23-year old female, when
both groceries for dinner and movie discounts
asked to describe how she decides to rent a
from a rental outlet such as redbox and
movie she recalled that after watching the
several established grocery
Academy Awards she later
stores could help boost the
opted to rent a certain movie
appeal of the “Date Night
from a redbox and cited the
at Home” theme for
media as the main source of
female consumers. Such
persuasion for her decision.
promotions should be
With the current swarm of
dispatched during the
media traffic surrounding the
early part of and throughout the weekend
18-24 year old target market, aggressive
because survey research concluded that 77%
advertisement placements for redbox in
of females rent on weekends as opposed to on
media hotspots noteworthy to women should
the weekdays.
be implemented to increase visibility and
Females More Influenced by Media
make the brand more recognizable to this key
The second recommendation for
base of female consumers. Competitors such
redbox also further expands on the previously
as Blockbuster Express and Netflix are
mentioned female consumer base. The
already capitalizing on these media outlets for
research shows that females are more
brand exposure, and redbox should follow
influenced by the media than their male
suite to stay competitive and prominent in the
counterparts. On average, they rated the
consumer’s mind.
influence of media as a 3.56 on a 5 point scale
(1 being no influence and 5
being strong influence).
Males More Likely to Rent Due to
Boredom
Research also
Men, on the other hand
revealed that males are a
rated the influence of media
statistically significant target
as a 2.93 on the same scale.
for a redbox advertisement
There are several media
campaign. One of the
outlets such as magazines
qualities of the male
and television networks specifically tailored to
consumer that redbox should play into is that
women that can be used to effectively reach
men are more likely to rent when they are
this female market. In one qualitative
bored. The statistics show
43 | P a g e
that men rate the influence of boredom as a
have used online rental services three times as
3.91 on average on a 5 point scale (1 being no
much as females within the past 30 days. In
influence and 5 being
addition, men will use
strong influence). This
online rental services
is a more substantial
more than females in
rating than the females
the next few months as
that were sampled,
well. On a 5 point scale,
who rated boredom as
men rated the expected
a 3.08 on the same
usage of DVD rental
scale. Redbox should
outlets during the next
conduct more in depth
few months as a 3.13 on
research to determine
average (1 being decrease
what activities males typically engage in when
usage and 5 being increase usage). Women
they’re bored in order to determine what
rated their expected change of usage as a 2.65
media outlets would prove most effective in
on the same scale. During the qualitative
reaching them during this time. Once these
interview one 19-year old male, who is a
channels have been identified a creative
Netflix user, defined online renting as the
campaign will be necessary to direct and
ultimate convenience for him by explaining
encourage the male consumer to select movie
that if he’s already decided to stay in and
renting from redbox as a solution to their
watch a movie than he would prefer to avoid
boredom.
going out to rent, “If I have to go out of my
Males More Likely to Increase Usage
way then it defeats the purpose.” The prime
of Online Rental within the Next Few
competitor in online rental is Netflix. Because
Months
The next recommendation for
reaching the male segmentation of the target
of Netflix’s present domination in this
industry, we recommend that redbox launch a
strong counter campaign to draw in male
market of 18-24 year olds
target market. An example
is to more boldly advertise
tactic for such a campaign
redbox on online sites.
would be to offer the
Quantitative research
incentive of a free month of
specified that males
redbox rentals if the
customer cancels their existing Netflix
44 | P a g e
subscription. This segment of male online
renters is not limited to its contemporary
importance in the industry, but is also
Males More Likely to Use Mailing
Service
valuable for redbox’s future business outlook.
The final recommendation for
Online renting has the potential to expand in
successfully reaching the 18-24 year old target
the future due to the continual advancements
market is to offer male customers an
in technology, and must
alternative to using
therefore be considered
rental mailing services.
by redbox in future
83.3% of male
expansion plans in
participants were more
order to remain current
likely to use mailing
with the technologically
services for their rental
savvy 18-24 year old
needs. Redbox needs to
market. The statistical
design a campaign that
evidence that this
will highlight its online
consumer base is willing
movie reservation
to experiment with new
option as a combatant
technology such as
to the present mailing
online rental also gives
rental system. The
an indicator towards the
campaign should
types of promotional
compare online movie
avenues that will be
reservation to mailing
successful in reaching
services by emphasizing
this segment. Redbox is advised to increase
the immediacy of reserving a DVD online and
its promotions for online rental services in
then retrieving it from a convenient redbox
technologically advanced as well as male
kiosk as opposed to the more time consuming
specific media channels such as e-mail, text
process of requesting, receiving, and
messages, social networking sites and
returning the DVD by mail.
websites geared toward male audiences.
45 | P a g e
Appendix I: Qualitative Interview Guide
REDBOX INTERVIEW GUIDE
Background Information:
Gender :
Female or Male
Age:
_______________
Status:
Student Non-Student
Deciding to Rent a Movie
Tell me about how you decide to rent a movie.
[Note: If s/he has trouble getting started, ask the person to think about the last time s/he rented a
movie.]
[Here are some “prompt” questions to cover if the person doesn’t address them.]

Do you have certain days of the week or occasions that prompt you to rent a movie?

Group Question- Tell me what activities you associate with renting.

Was anyone else involved in the decision to rent? Tell me about it.

From where do you usually rent?
Probe: Anywhere else?

Group Question- Would you consider yourself brand loyal to any of these companies?
46 | P a g e
Rental Outlets
(Ask this line of questions for each of the outlets your respondent named as “usually rents from” –
see above)
You said that you usually rent from (name outlet).

Why do you rent from (name outlet)?
Probe: Why is that important to you?
Probe: Any other reasons? Why is that important?

What do you like about (name outlet)?
Probe: Could you elaborate?
Probe: How much does this feature influence you to rent from here?

What do you dislike about (name outlet)?
Probe: Is that important to you? Why or why not?
You said you also rented from (name outlet – from the opening questions).

Ask the above series of 3 questions again for each rental outlet named.
DVD Kiosks
Say: You can now rent dvds from self-service kiosks at a variety of places around town.

Can you name any of these kiosks?
Probe: Can you think of any other brands of dvd kiosks?

Are dvd kiosks for someone like you?
Probe: Why or why not?
(You’re going to have to do your own follow-up here depending upon what they say.)
47 | P a g e
Redbox
If they have not named redbox yet in the interview, ask:
o
Have you ever heard of redbox?
 [If yes] – tell me what you know.
 [If no} – conclude the interview.

Have you ever rented a dvd from redbox?
(Note: They may have already addressed this under the Rental Outlets questions above.)

If they have tried redbox:
o Tell me about your experience.
o What prompted you to rent from redbox?
o What did you like about redbox?
o What did you dislike about redbox?
 If they have not tried redbox: why haven’t you rented from redbox?
(Probe here to really find out what might be the hindrance. You want to see if it’s something that could
be addressed through the Marketing 4P’s – especially if it’s related to communication.)
48 | P a g e
Appendix II: Quantitative Survey
Directions: Please complete the following survey to your best ability. If you do not know an answer,
do not fill in a random number. Instead, leave it blank.
Thank you for participating in the survey. Your answers will only be used for research purposes.
Section 1: DVD Rental Habits
1. When was the last time you rented a movie? (Circle one)
1
1 week ago
2
2 weeks ago
3
3 weeks ago
4
About a month ago
5
More than a month ago
2. How often in a month do you rent movies on average? (Circle one)
1
Less than once a month
2
1 time
3
2-3 times
4
4-5 times
5
More than 5 times
3. When do you rent movies most often? (Circle one)
0
During the week
If so, which day usually? ______________________
1
On the weekends
49 | P a g e
4. Is your rental decision usually influenced by others? (Circle one)
1
Yes (Go to 4a)
0
No (Go to 4b)
4a. If yes, please rate the degree that these factors influence you. (Circle a number for each)
No
Influence
Strong
Influence
Neutral
Significant Other/Spouse
1
2
3
4
5
Family
1
2
3
4
5
Media (e.g. ads, reviews)
1
2
3
4
5
Friend
1
2
3
4
5
Room mate
1
2
3
4
5
Other
1
2
3
4
5
4b. If no, how much influence do the following have on your decision to rent a movie? (Circle a
number for each)
No
Strong
Influence
Neutral
Influence
Boredom
1
2
3
4
5
Relaxation
1
2
3
4
5
Interest in Movies
1
2
3
4
5
Other
1
2
3
4
5
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5. What is most important to you when choosing a rental outlet? (Choose only one)
1
Distance needed to travel
2
Price
3
Time Spent on Rental Process
4
Employee Assistance
5
Hours of Operations
6
Technology
7
Return Policy
8
Selection
9
Membership
10
Late Fees
11
Other: ________________________
6. Have you ever rented from the following: (Circle choice for each)
Yes
No
Retail Locations
1
0
Online Rental
1
0
Mailing Services
1
0
Video Streaming
1
0
Self-Service Kiosks
1
0
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7. Have you rented from the following in the past 30 days? (Circle choice for each)
Yes
No
Retail Locations
1
0
Online Rental
1
0
Mailing Services
1
0
Video Streaming
1
0
Self-Service Kiosks
1
0
8. Rate your expected usage of DVD rental outlets for the next few months. (Circle a number for each)
Decrease
No
Increase
Usage
Change
Usage
Retail Locations
1
2
3
4
5
Online Rental
1
2
3
4
5
Mailing Services
1
2
3
4
5
Video Streaming
1
2
3
4
5
Self-Service Kiosks
1
2
3
4
5
9. Which brand of movie rental outlet have you used the most in the past six months? (Choose only one)
1
Amazon On-Demand
2
Blockbuster
3
Blockbuster Express
4
DVD Now
5
Hollywood Video
6
iTunes
7
Movie Gallery
8
Netflix
9
Redbox
10 Other
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Section 2: DVD Rental Kiosks
1. Have you ever used a DVD rental kiosk?
1
Yes (Go to 1a & 1b)
0
No (Go to 1c)
1a. If yes, what brands have you used? (Circle choice for each)
Yes
No
Blockbuster Express
1
0
DVD Now
1
0
DVD Play
1
0
Redbox
1
0
Other
1
0
1b. If yes, rate your satisfaction with DVD rental kiosks in the following areas. (Circle a number
for each)
Very
Dissatisfied Neutral Satisfied Very
Dissatisfied Satisfied Neutral
Satisfied
Distance Needed to Travel
1
2
3
4
5
Price
1
2
3
4
5
Time Spent on Rental Process
1
2
3
4
5
Hour of Operations
1
2
3
4
5
Technology
1
2
3
4
5
Return Policy
1
2
3
4
5
Selection
1
2
3
4
5
Late Fees
1
2
3
4
5
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1c) If no, what is the main reason you have never rented from a DVD kiosk? (Choose only one)
1
Never heard of them
2
Skeptical of new technology
3
Impersonal
4
Privacy Concerns
5
Brand loyal to another company
6
Other: _______________
Section 3: Redbox
1. Have you ever used redbox? (Circle one)
1
Yes
0
No
If yes, rate your satisfaction with redbox in these areas. (Circle a number for each)
Very
Very
Dissatisfied Dissatisfied
Satisfied Neutral
Neutral Satisfied Satisfied
Distance Needed to Travel
1
2
3
4
5
Price
1
2
3
4
5
Time Spent on Rental Process
1
2
3
4
5
Hour of Operations
1
2
3
4
5
Technology
1
2
3
4
5
Return Policy
1
2
3
4
5
Selection
1
2
3
4
5
Late Fees
1
2
3
4
5
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Section 4: Demographics
1. What is your gender? (Circle one)
1
Female
0
Male
0
No
2. How old are you?
3. Are you a student? (Circle one)
1
Yes
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References
1.
IBISWorld (Pg. 12, 14, 16, 33)
2.
MarketResearch (Pg. 12, 36, 52, 111, 114)
3. http://www.businessweek.com/technology/content/feb2010/tc2010022_125668.htm
4. http://www.annualreports.com/Company/3736?n=netflix (pg. 1)
5.
http://ir.netflix.com/
6. Simmons Research Data
7.
http://www.insideredbox.com/redbox-parent-coinstar-reports-more-than-1-billion-in-2009-revenue/
8. http://www.homemediamagazine.com/financial/ncr-blockbuster-express-revenue--line-withexpectations-17392
9. Video Business; 5/11/2009, Vol. 29 Issue 18, p3-20, 2p, 1 color (RDS)
10. http://redboxpressroom.com/
11. http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
12. http://www.usatoday.com/tech/products/2009-08-11-rental-dvd-redbox_N.htm
13. http://www.betanews.com/article/Blockbuster-gains-ground-in-rental-kiosk-turf-war/1253116199
14. Hollywood Reporter, 405 (49): 6, August 05, 2008. ISSN: 0018-3660 (RDS)
15. http://www.annualreports.com/Company/1935
16. http://latimesblogs.latimes.com/technology/2009/01/if-you-stream-i.html
17. U.S. Census Population Projection : (NP-T3)
18. http://www.entmerch.org/priorities.html
19. http://www.entmerch.org/positions.html
20. Video Business; 11/16/2009, Vol. 29 Issue 44, p5-5, 1/8p, 1 color
21. Video Business; 12/14/2009, Vol. 29 Issue 46, p5-5, 1/4p
22. Video Business; 12/1/2008, Vol. 28 Issue 48, p5-5, 1/6p
23. http://www.selfservice.org/the-perspective? category=18
24. Video Business; 5/4/2009, Vol. 29 Issue 17, p13-13, 1p, 1 color
25. Drug Store News; 10/12/2009, Vol. 31 Issue 12, p51-51, 1/3p
26. Communication Research; Oct2008, Vol. 35 Issue 5, p602-621, 20p
27. http://www.fastcompany.com/blog/chris-dannen/techwatch/blockbuster-rent-movies-sd-cards-why
28. http://www.redbox.com/
29. http://www.netflix.com/
30. http://www.blockbusterexpress.com/
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31. http://www.facebook.com/#!/redbox?ref=ts
32. http://www.facebook.com/#!/netflix?ref=ts
33. http://www.facebook.com/#!/InsideBlockbusterExpress?ref=ts
34. http://www.youtube.com/watch?v=5nW609P8usA
35. Ad$pender.2008. Report of Netflix and redbox.
36. Simmons Market Research. DVD/Blu-Ray Rentals Increases at Grocer. November 17, 2009.
37. Simmons Market Research. It’s Titanic in scale! Experian Information Solutions, Inc. 2009.
38. “Blockbuster to Start Renting Movies on SD Cards”. November 10 2009. Posted by Sean from Fast
Company.
39. Video Business; 5/4/2009, Vol. 29 Issue 17, p14-14, 3/5p, 1 graph
40. http://www.bls.gov/news.release/pdf/cpi.pdf
41. http://www.bls.gov/news.release/empsit.nr0.htm
42. http://www.conference-board.org/economics/consumerConfidence.cfm
43. Standard & Poor’s Industry Surveys: Movies & Home Entertainment, Sept. 10, 2009 (Pg. 3, 4)
44. Business Week: 1/11/2010, issue 4162, p. 54-55, 2p
45. http://blog.redbox.com/redblog/2010/02/my-entry.html#comments]
46. http://blog.netflix.com/
47. http://www.selfserviceworld.com/article.php?id=23760&site=6
48. http://www.blockbuster.com/corporate/news
49. Coinstar.com
50. Blockbuster.com
51. Video Business. 8/10/2009, Vol. 29. Issue 30, p 1-19, 2p.
52. http://www.globenewswire.com/newsroom/news.html?d=116181
53. http://www.quantcast.com/redbox.com
54. http://franchise.njoynow.com/blog/2009/08/13/red-box-grows/
55. http://www.msnbc.msn.com/id/12484567/
56. Nation's Restaurant News; 1/23/2006, Vol. 40 Issue 4, p4-49, 2p, 2 color
57. Video Business; 9/14/2009, Vol. 29 Issue 35, p6-21, 2p, 1 color
58. Self-service trend in 2010. KioskMarketplace. 05 Jan 2010.
59. http://www.coinstar.com/us/html/A4-2
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