Swot Analysis Of Redbox

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Redbox first hit the streets in 2002, and since then has continued to grow and shift with their target audiences’ needs. While it began with just renting and returning movies at one of their now iconic red kiosks, it has since grown into a national source to meet entertainment demands. Why are consumers so willing to rent from Redbox? Redbox capitalizes on both convenience and affordability. While the entertainment industry is filled with streaming services to satisfy every audience available, these platforms rarely offer the newest movies, and sometimes even miss out on the classics. While people love to settle into comfort movies found on platforms like Netflix or Hulu, the constant onslaught of movie trailers drives audiences to seek out ways to satisfy the call of new entertainment. Redbox offers these movies not only at an affordable price, but right down the street; if that movie isn't available at the nearest Redbox, just hop over a town or two and rent away. Why spend $50 at …show more content…

The biggest issue was securing enough capital to put growth into motion, and catapult out of the small scales tests that showed promising projections. In 2005 as they sought out potential investors, they were rejected from major corporations like Netflix and Blockbuster, but found hope in Coinstar. Coinstar saw their vision and spent 32 million dollars to secure a 47% stake in the company and in 2009 spent 107 million dollars to acquire the whole company (Williams). Even with such a major backing, it took some time for Redbox to make the expansions needed to increase engagement and knowability, and actually be profitable. This was achieved by making partnerships with national chains to house their kiosks, thus increasing accessibility. Redbox has partnered with companies like Walmart, CVS, Walgreens, Family Dollar, and many grocery stores