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Netflix Fights to Stay Ahead of a Rapidly Changing Market

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Netflix Fights to Stay Ahead of a Rapidly Changing Market
A. Redbox will threaten the movie rental by mail business. Redbox has grown to over 36,000 kiosks nationwide and claim that “68 percent of the U.S. population lives within a 5 minute drive of a Redbox kiosk” (Ferrell and Hartline, 2014, p.475). The kiosks are convenient to many customers for them pick up and return their rentals while out shopping at places they already frequent like grocery stores and pharmacies. Redbox also offers new release movies for rental sooner than Netflix currently does. Unless Netflix figures out a way to take on Redbox head-to-head, Redbox will remain the leader in DVD / Blue-Ray movie rentals.
Other competing organizations that offer streaming media like Hulu and Aereo will offer some level of competition to Netflix’s bread and butter part of the business. However, with Netflix currently owning the lion’s share of the market and continues to lock-in agreements with providers such as Verizon, Netflix will continue to remain the market leader as long as they stay ahead of the competition through new innovations, offerings, and competitive pricing as a result of the increase in competition.
B. Rebox’s growth could be the only organization that could force Netflix to alter its current by-mail strategy. Netflix will need to eventually decide if they should focus solely on just being a video streaming business, their current strength, or to compete directly with Redbox in the movie rental business. They could also deploy kiosks at other shopping establishments that Redbox does not currently have agreements with.
Netflix could also shorten the time frame in which movies become available for streaming. Many customers subscribe to both Netflix and competing organizations like Redbox because Netflix does not offer newly released movie titles that viewers are looking for. They get the

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