Proving once again you can find a study to prove almost anything, a report came out today showing that Redbox will bring down the movie industry by continuing with their $1 a night business model. Sounds like some sour grapes to me.
And what is Redbox doing that is so heinous you ask? Well, according to the study, renting DVD’s for a buck is cannibalizing sales, making customers want other outlets to offer similar deals, and harming the “perceived value” of movies in general. As an example of this, Blockbuster recently started their own kiosk system to try and muscle in on Redbox.
On top of these crimes, Redbox is also making quite the killing in the aftermarket sales area. Of course, Redbox claims that what they are doing it’s that bad, and they contest some of the data that the study collected.