Netflix has been recognized for a long time as the top online video-rental business in spite of competition from Blockbuster. However, one rather low-tech business, Redbox, is growing at a fast pace and poses a serious threat to Netflix. This relatively new competitor has got about 15,000 of their red vending-machine boxes all over the U.S. at last count.
Instead of mail order like Netflix, Redbox does video rental with these red kiosks, which are essentially vending machines that can stock up to 200 movie titles on DVD. Now Blockbuster (the Microsoft of the video rental biz) is going to imitate Redbox by trying its hand at renting movies through its own kiosks promising 10,000 DVD kiosks to the public in April