Hollywood’s major revenue generator – the DVD retail market – is under attack from a range of DVD rental kiosks, primarily the Redbox line of rental kiosks across North America. With film revenues dwindling and long-term rental rates, particularly from retail outlets, falling quite dramatically, Hollywood have begun an all-out offensive against the kiosk-based businesses.

Online rental company Netflix recently signed a 28-day delay contract with Hollywood’s largest studios, ensuring that films have a fair run on DVD before being brought online as a streaming product. With Redbox and other kiosk-based rental services facing the same delay, it appears that Hollywood’s cartel-style release strategies could result in lost earnings for kiosk companies.

However, Redbox is keen to fight back. With growing revenues and a potentially revolutionary business model, the ever-growing kiosk DVD rental company plans to offer a video streaming service to complement their kiosk-based rental outlets. Available as a paid monthly service, Redbox believe that the online service could potentially beat out rival Netflix and DVD rental outlets such as Blockbuster.

Whether the strategy will succeed or not is unknown. However, with Redbox’s recent success disrupting Hollywood’s retail strategy, it appears that almost anything is possible in the exciting kiosk industry.