socialmedian: Redbox Eats Into Netflix Market Share

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Redbox Eats Into Netflix Market Share

Source: Digg

Jun 25, 2009

Summary

The companies also use different business models: Netflix pays postage for each DVD rented, so it does best when customers opt for ambitious subscription plans but are slow to watch and return movies. Redbox’s profits on renting each disc as many times as possible and Redbox rental costs just $1 per day.