True. But it’s not like Redbox is launching the kiosks today, that’s already sunk cost because they’ve made them all. Sure they need repair and stuff but they’re basically vending machines so I’m guessing there’s somewhat sturdy. And loading new movies in/taking old ones out could be done by the employees of the stores they are located in as part of the placement agreement.
Could you start a Redbox from scratch? I kind of doubt it. I think the costs would overwhelm you. But that’s not the position they’re in.
I’m not saying you’re going to become a fortune 500 company on the business model. But I think there’s enough for a real business to survive there, depending on the areas where you place the kiosks.
However Redbox has history and the agreements may not be as favorable to them as they would need to keep operating, or they may have a lot more debt than necessary.
There are a lot of Bobs out there though. It’s not a big theoretical.
Could you start a Redbox from scratch? I kind of doubt it. I think the costs would overwhelm you. But that’s not the position they’re in.
I’m not saying you’re going to become a fortune 500 company on the business model. But I think there’s enough for a real business to survive there, depending on the areas where you place the kiosks.
However Redbox has history and the agreements may not be as favorable to them as they would need to keep operating, or they may have a lot more debt than necessary.
There are a lot of Bobs out there though. It’s not a big theoretical.