After the much hyped Netflix summer move of separating streaming(7.99) and dvd prices (7.99) resulting in a whooping $15.98, most of their current subscribers, including your fellow blogger, decided to drop one of their services. Finally the time had come when Netflix realized it was being way too cheap and customers were angry. Meanwhile, Amazon and Redbox started planning ahead their next move. Amazon started stocking up their catalog with new titles and Redbox grinned happily as the majority of Netflix´s old customers vowed to change to the red telephone cabin.
Netflix is starting their new plan September first and Redbox is ready to counterattack with a new offer only valuable August 15 to August 24. Their joining up with Foursquare to offer discounts (from $0.10 cents to $1.00) every time you check in at one of the Redbox kiosks. Given that the DVD´s are only $1.00 any reduction is price is quite nice.
During that trial week Redbox can see if partnering Foursquare (the cool kid in the block) is actually worth it and if it increases trial. But most of all, this will be about spreading buzz and reminding customers of the Redbox brand when September comes and they decide to leave Netflix.
I want to embrace Redbox but the late fees and the fact that their catalog is not that big turns me off. However, I find myself looking at their DVD´s at Ralphs and seeing titles that are not in Netflix just yet. Fact is, will you want to leave the house and drive for five minutes to return your dvd? Or would you rather pay and not worry?
Either way, it´s healthy to see some competition and options for movie watchers out there. Netflix, brace yourself, fall is coming.
