The change in the way we rent movies is amazing

October 19, 2009 – 10:34 am – No Comment

Redbox Kiosk

There are huge changes that have been happening in the way we all rent movies. Thanks to technology, rental stores are basically useless. Many people have been opting to use mail services such as NetFlix, rental kiosks such as RedBox, or video on demand services like what is now being offered through DVRs and cable services.

It’s strange because the change has happened so quickly. Just a few years ago, movie rental businesses were popping up like weeds across strip malls. In my town of less than 20,000 people, there are two Movie Galleries and a Blockbuster. Now, they are all hurting thanks to the two RedBox kiosks and one other rental kiosk that have found themselves in town.

Part of the reason that these types of movie rental locations have become so popular is their convenience, selection, and price. At just $1 per night, these choices are far cheaper than renting a movie at a Blockbuster, which can cost up to $5 for a rental of 3 nights.

These kiosks are really hurting Blockbuster and Movie Gallery. Movie Gallery owns Hollywood Video as well as Game Crazy and along with Blockbuster, it plans on closing several hundred stores beginning this fall.

Right now there are 15,000 RedBox kiosks nationwide and Christopher Goodrich, one of the spokesmen for the company, said that the company should have 22,000 running by the end of the year.

A research firm based in Port Washington, New York called NPD Group said that Redbox kiosks make up almost 20% of all movie rentals throughout the country. Netflix makes up 36% and brick and mortar stores like Blockbuster taking 45%.

I actually have a problem with Blockbuster and Movie Gallery because I often go in the store wanting one movie. Often, the store doesn’t have it because all the copies of the movie I want have been rented. So, instead, if I want to watch a movie I find myself paying a lot for a movie I really didn’t want to watch. When I go to a Redbox kiosk, if the kiosk doesn’t have the movie I want to watch, I don’t feel like I’ve wasted a trip because I usually have to run to Wal-Mart anyway.

Another thing that annoys me about Blockbuster and Movie Gallery stores is that it seems like if you want to rent an older movie, they cost the same to rent as a “new release.” Often, you can find these movies at the $5 bin at Wal-Mart. So, for the same price you were going to rent the movie for, you could own it.

I suppose we’ll see how things go for the brick and mortar movie rental places over the next few years.