When you can order from thousands of choices on Netflix or browse a ton of titles at your local video store, how could Redbox – the DVD kiosk you see at McDonald’s and supermarkets, stand a chance? They saw a niche and filled it. They’re in more locations (in other words, more convenient) than Blockbuster. You get your DVD faster (more convenient, again) than with Netflix. And here’s the clincher. Since most people rent movies between 4 and 9 PM, the kiosks are located at the other places people frequent during that time slot: grocery stores and restaurants. Convenience, again. Streaming video will someday retire Redbox, but not until it makes a boatload of money being convenient. Can you introduce convenience as a competitive advantage?
