Blockbuster finally hits back at kiosk firm Redbox with boxes of its own

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.