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Netflix or Redbox

Netflix or Redbox?
Written: 10-04-2011

Trying to decide between Netflix or Redbox? Both offer DVD rental services. However, the two companies are quite different in how they approach their DVD rental customers. Here are a few key things to consider when choosing between Netflix or Redbox.

Netflix offers both, a DVD rental service through the mail, and an online steaming service. For comparison purposes we are going to just focus on the mail DVD rental service provided by Netflix. Netflix is a mail order DVD service where you select movies to watch and they are delivered to you in the mail. It takes about 3 days for you to get a movie. For example, if you return a movie in the mail, it usually gets to the distribution center overnight. Then they send out the movie on the second day and you usually receive the new DVD on the third day. This 3 day turn-around time is the main difference between Netflix and Redbox. Redbox requires you to physically go pick up a movie at one of their kiosk locations. For example, most McDonalds have a Redbox kiosk. In most cities, you can find a Redbox kiosk within a few miles from your home. So the key take away - is Netflix takes about 3 days for DVD turn around time where Redbox is a 10 minute turn around time. Netflix movies come in the mail. Redbox requires you to get in your car and drive to a Redbox kiosk location and pick up the movie. Redbox also requires you to return the movie to any Redbox location, which is also another car trip.

Redbox offers only new releases and popular DVD titles. Most Redbox kiosks contain between 50-100 title selections. Netflix has just about every movie title available. This is the key difference between Netflix and Redbox - DVD title selection. You are basically trading movie title selection for quick convenience.

Cost is also another factor that should be considered between the two companies. Netflix mail order DVD service starts at $7.99 a month for one DVD at a time. Two DVDs out at a time will cost $11.99 a month, and three DVDs at a time is $15.99 a month. You can rent as many DVDs as you want, but remember it takes about 3 days for turn around time. So at the $7.99 plan you could only watch 7 movies a month - which is about a dollar a movie. Redbox pricing structure is very simple - it is a $1 a day per DVD rental. You can pick up any movies that are available in the kiosk and as long as you return them with in a day it will only cost a buck per movie.

If you are the kind of person that makes spur of the moment decisions then Redbox may be the right solution for you. If you like to plan things out in advance or would like more movie selection than Netflix is probably better. Or you could choose to combine both services. Use the $7.99 Netflix one DVD plan for selection and then use Redbox for new releases. To me the combination is a great way to go!

Questions, Comments, and Answers...

10-04-2011 by Derek, Florida
Question: What about Blockbuster DVD rental service - how do they compare to Netflix and Redbox?

Answer: I think Blockbuster is in a bad situation. They have the cost of brick store fronts which make it hard for them to compete with Netflix or Redbox. Yes, the do offer a wider movie selection than Redbox that you can get immediately, but how long can they compete. They currently are in chapter 11 bankruptcy. It will be interesting to see where they end up in the DVD rental war.


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