The article does discuss pricing and Google's strategy here. Pretty smart if you ask me...
"Google plans to charge merchants a 2.2% commission on a sale, plus 30 cents per transaction using its payment service...That is higher than Pay-Pal's lowest published rate of a 1.9% commission plus 30 cents per transaction.
"Google's rate doesn't include the discount pricing that the company will give to merchants participating in its AdWords advertising program...Merchants who spend money on Google's ad program could get the cost of payment processing through Google dropped to nothing...
"To attract consumers, Google plans to offer an unspecified rebate to people who complete online purchases using GBuy."
I currently have 2 providers, Vonage and Sunrocket.
If it wasn't for Vonage giving me some credits recently, I would already have cancelled. My bill keeps going up as they raise their fees, and now they are charging me local taxes, too. If I wanted to pay unknown taxes and fees, I would have stayed with my telco.
But anyway, Sunrocket has been great. While their Customer Service is notably lame (but I expect nothing less), they have better features than Vonage, including E911. Plus, they give you some pretty cool free phones when you signup, and there is no signup fees, or wacky charges.
What does it cost? $199 for an entire year (or $24.95/mo) with no other fees/taxes. And, since I know Slashdotters are too lazy to type in a URL, here it is for you: http://www.sunrocket.com/
I don't think it could be the same thing you have seen on TV. Redbox is owned by McDonald's and CoinStar. I don't think anyone can actually "invest" in it, as it is a private company.
I do, however own the website http://www.insideredbox.com/, which I created to be a place for people to discuss Redbox and get free dvd rental codes. It is a lot like the popular "Hacking Netflix" site.
Anyway, I really don't care one way or the other what anyone thinks about the Redbox, I was just posting to give some information related to the article.
Well sure it is "easier". But what happens if you want to watch the movie today? That is why I like it. I personally think it is good to have a membership like NetFlix for getting classic movies, and using the Redbox for the new releases.
And, BTW, I have no clue what "astroturf" means. So, sorry I can't comment on that.
Anyway, just thought I would share. I use it and love it.
It is somewhat like going to the local video store, except it is a lot cheaper.
One thing I failed to mention is that Redbox is owned by McDonald's. They have just been testing to those 10 markets, but they have recently got some great partnerships with some grocery chains, and one day just about every McDonald's restaurant will have one. How is that for convenience.
What is cool, too, is that you can return your rental to ANY Redbox in the country, so great for travelling. Pick it up in DC and return it in Vegas, etc...
Anyway, I have been using it for the past year in my town, and I love it! (Plus, I have probably only paid for 3 rentals in the past 5 months or so because of the free codes.)
While it is interesting to see how the envelope has changed over the years, I find it more interesting to see some new competitors in the marketplace who are really innovating...
Imagine being able to go online and request any movie you want, and be watching it within the hour. (OK, other than using BitTorrent!). You just go down to the local Redbox kiosk and pick it up within the hour.
This is on the way, and you can't beat the current prices ($1/day) for new releases. And, there is a website with Redbox codes where you can get A LOT of free rentals, too.
So, if you are in one of 10 major metros you can get this today.
So, forget the red envelope, and get ready for the Redbox.
What I would like to see is the ability to take a credit card for payment over the phone. There are some services that offer something similar...
So, if I could say use the virtual terminal to have someone pay me for a transaction (think flea market or the like), or even call into a number and enter the payment info over the phone... that would be worth talking about.
Netflix can afford to do this to their customers because, for the most part, not enough people are going to notice. When you have millions of subscribers, and you p!ss off the ones who are "taking advantage" of your service, most of your subscribers will never know.
Now, don't get me wrong, I can understand their concern over piracy/copying, but lets look at the big picture here: How many of Netflix subscribers rent 3 to 5 movies per month (or less). They are making big bucks off these folks (just like most "buffets" do).
There are new companies out there now like Redbox that are starting to gain marketshare. And, for those who mainly watch new movies, it is probably a better choice than Netflix. And, right now you can get a lot of free movies from Redbox if you have one nearby (checkout the link above).
So, just as video stores started to lose to Netflix, I believe Netflix will start to lose to these local kiosks.
What will the future hold? Imagine going down to the local McDonald's or supermarket, and sliding your card at the kiosk, and it will burn the movie you want to see on the spot. And, when your done with it you will either have to return it, or it will "self-destruct" after 24 hours...
Slashdot Mirror
The article does discuss pricing and Google's strategy here. Pretty smart if you ask me...
"Google plans to charge merchants a 2.2% commission on a sale, plus 30 cents per transaction using its payment service...That is higher than Pay-Pal's lowest published rate of a 1.9% commission plus 30 cents per transaction.
"Google's rate doesn't include the discount pricing that the company will give to merchants participating in its AdWords advertising program...Merchants who spend money on Google's ad program could get the cost of payment processing through Google dropped to nothing...
"To attract consumers, Google plans to offer an unspecified rebate to people who complete online purchases using GBuy."
I currently have 2 providers, Vonage and Sunrocket.
If it wasn't for Vonage giving me some credits recently, I would already have cancelled. My bill keeps going up as they raise their fees, and now they are charging me local taxes, too. If I wanted to pay unknown taxes and fees, I would have stayed with my telco.
But anyway, Sunrocket has been great. While their Customer Service is notably lame (but I expect nothing less), they have better features than Vonage, including E911. Plus, they give you some pretty cool free phones when you signup, and there is no signup fees, or wacky charges.
What does it cost? $199 for an entire year (or $24.95/mo) with no other fees/taxes. And, since I know Slashdotters are too lazy to type in a URL, here it is for you: http://www.sunrocket.com/
Here is a release from McDonald's that talks about CoinStar's investment last year.
I do, however own the website http://www.insideredbox.com/, which I created to be a place for people to discuss Redbox and get free dvd rental codes. It is a lot like the popular "Hacking Netflix" site.
Anyway, I really don't care one way or the other what anyone thinks about the Redbox, I was just posting to give some information related to the article.
Well sure it is "easier". But what happens if you want to watch the movie today? That is why I like it. I personally think it is good to have a membership like NetFlix for getting classic movies, and using the Redbox for the new releases.
And, BTW, I have no clue what "astroturf" means. So, sorry I can't comment on that.
Anyway, just thought I would share. I use it and love it.
One thing I failed to mention is that Redbox is owned by McDonald's. They have just been testing to those 10 markets, but they have recently got some great partnerships with some grocery chains, and one day just about every McDonald's restaurant will have one. How is that for convenience.
What is cool, too, is that you can return your rental to ANY Redbox in the country, so great for travelling. Pick it up in DC and return it in Vegas, etc...
Anyway, I have been using it for the past year in my town, and I love it! (Plus, I have probably only paid for 3 rentals in the past 5 months or so because of the free codes.)
Imagine being able to go online and request any movie you want, and be watching it within the hour. (OK, other than using BitTorrent!). You just go down to the local Redbox kiosk and pick it up within the hour.
This is on the way, and you can't beat the current prices ($1/day) for new releases. And, there is a website with Redbox codes where you can get A LOT of free rentals, too.
So, if you are in one of 10 major metros you can get this today.
So, forget the red envelope, and get ready for the Redbox.
What I would like to see is the ability to take a credit card for payment over the phone. There are some services that offer something similar... So, if I could say use the virtual terminal to have someone pay me for a transaction (think flea market or the like), or even call into a number and enter the payment info over the phone... that would be worth talking about.
Now, don't get me wrong, I can understand their concern over piracy/copying, but lets look at the big picture here: How many of Netflix subscribers rent 3 to 5 movies per month (or less). They are making big bucks off these folks (just like most "buffets" do).
There are new companies out there now like Redbox that are starting to gain marketshare. And, for those who mainly watch new movies, it is probably a better choice than Netflix. And, right now you can get a lot of free movies from Redbox if you have one nearby (checkout the link above).
So, just as video stores started to lose to Netflix, I believe Netflix will start to lose to these local kiosks.
What will the future hold? Imagine going down to the local McDonald's or supermarket, and sliding your card at the kiosk, and it will burn the movie you want to see on the spot. And, when your done with it you will either have to return it, or it will "self-destruct" after 24 hours...