Netflix, Redbox, and the Future of Hollywood
by Leo GrinOver the last year I watched an interesting mini-social experiment play out: my sixty-something parents trying out Netflix.
The company’s now-famous little red envelopes first gained fame around the time the dot-com boom went bust in early 2000. Video rental behemoth Blockbuster, reeling from a catastrophic bleeding of market share to this wily challenger, entered the rent-by-mail fray in 2004, but it soon became apparent that they were going to get their hats handed to them. An even younger upstart, Redbox, began as a subsidiary of McDonald’s, and by 2007 its kiosks has spread across the fruited plains of America like wildfire, in the process putting the final nails in Blockbuster’s coffin.
My folks watch a lot of flicks, either at the theater or at home, so there’s always opportunities for improving the experience — the Great TiVo Immersion Program of 2005, masterminded and forced upon them by moi in the face of strenuous objections, turned out to be life changing. So after years of watching them drive out in the early evening to various video stores, I bought them a year-long Netflix subscription in Christmas 2009, and waited to see how it played out.
To my surprise, they hated it. For a year they bemoaned that Netflix never seemed to have the newest titles already available at the local rental shops. Even when using the service to queue older titles, they never got used to having to wait a day or two for DVDs that they could have in fifteen minutes by driving down the street. Eventually they settled in to using Netflix only for older or obscure films, things they otherwise wouldn’t have rented at all, and of course taking chances on such films was more of a hit-or-miss proposition than using Redbox to rent new movies they were jazzed to see. Meanwhile Netflix’s newest innovation, streaming to computers and TV, went entirely unused. (more…)







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