"Why would anyone want to watch anything other than new releases" is pretty much the slogan of RedBox. Why pay $5 for a movie rental when you can pay $1 at McDonalds or the grocery store or the gas station for the same new release? Plus, with RedBox, I don't have to show two forms of ID or fill out an application. I pick the DVDs I want, slide my card in, and the movies pop out.

NetFlix has become the premium rental service. RedBox is the budget service. Blockbuster is getting squeezed out of the market from both sides.