Blockbuster (BBI) has been bested in the online video rental business by NetFlix (NFLX) and in the online video-on-demand business by a number of other companies. The bricks-and-mortar video store firm's shares have fallen from over $10 five years ago to $0.63 as trading opened today. But it's finally making a move to challenge the threat posed by video kiosk company Redbox.
Redbox operates over 17,000 film rental kiosks across the U.S. and rents most movies for $1 a day. Blockbuster has 7,100 stores around the world, but it has been cutting that number each quarter. Redbox isn't nearly as big as Blockbuster, but it is growing; third quarter revenue rose 90% to $198 million.