Video Rental Industry Still Relevant

It is no secret that video rental stores are a thing of the past. As of 2017, there were only 2,000 stores left, including the last standing Blockbuster located in Oregon. As video stores became less popular and video rentals continued to increase in price, Redbox came up with the brilliant strategy of placing video rental kiosks in retail locations and only charging one dollar.

Throughout the last 17 years, Redbox’s popularity has remained high even with the current climate moving towards streaming services and on-demand subscriptions. The video rental company began offering on-demand service through subscription in 2016, and since then, sales numbers have increased after a slight dip in 2015. Now there are approximately 40 thousand units scattered across all 50 states and the District of Columbia.

The sheer quantity of Redbox locations has placed this company in first place for the number of units in CSG’s Discount, Dollar, & Specialty Stores Database. 2018 reported a 3.75% increase in sales revenue over the previous year, bringing its sales to just over $1.8B. Being privately owned, Redbox does not always disclose its fiscal earnings, though Chain Store Guide, through extensive research, was able to obtain and verify growth accuracy.  If the company’s newest endeavor into offering original content is successful like many of its competitors, there is little doubt the retailer will remain on top.