Computer Support Blog

Sometimes, a good idea is as simple as making a product easier to buy or rent.  What is the value of an idea that simplifies the buying experience?  In the case of Redbox, making DVDs and video games easier to rent made the company billions of dollars.  Much of the success of Redbox is the result of the hard work of Mitch Lowe.

Redbox was a novelty pilot program outside McDonald’s restaurants when Mitch Lowe joined the company in 2003.  Lowe was one of the co-founders of Netflix and he saw in Redbox a real threat to the company for whom he was working.  Adopting the philosophy of “if you can’t beat them, join them,” Mitch Lowe decided he wanted to see the Redbox model succeed.  He left Netflix and joined Redbox as a consultant.  Lowe quickly rose to Vice President of Purchasing and Operations of Redbox before the Board promoted him to Chief Operating Officer.  In 2009, Mitch Lowe was promoted again, this time to President of the company!

Mitch Lowe achieved his rapid promotions through hard work and effective execution of good ideas.  Redbox is a DVD rental company that operates without a storefront.  Instead, Redbox distributes DVDs through kiosks, like vending machines, at supermarkets and fast food restaurants.  When Lowe joined Redbox, it had eleven kiosks in the Washington, D.C. area.  Under Lowe’s management, Redbox grew to include 33,000 kiosks!  Mitch Lowe also diversified the products Redbox rented from simply DVDs to DVDs, Blu-Ray discs and video games for the Wii, Playstation 3, and XBOX 360 video game systems.

Redbox’s success under Mitch Lowe’s management was not without incident, though.  Under Lowe’s aggressive business model, which transformed the virtually unknown company into a business that accounts now for 36% of the disc rental market, Redbox became the target of lawsuits from all the major movie studios.  Lowe was so effective at the proliferation the Redbox kiosks that studios like Warner Bros., Fox and Universal saw a serious dent in their new DVD sales!  Consumers responded so positively to Lowe’s version of Redbox for DVD rentals that they stopped buying new DVDs in such noticeable amounts that the major studios took issue.  While this type of concern from the supply chain could kill a business, Mitch Lowe successfully negotiated with the studios for terms upon which all parties could agree.

Mitch Lowe stepped down as President of Redbox in 2011, after seeing the company through its most tumultuous times and a complete buyout from Coinstar.  Given his success at Redbox, he will be a real asset for whatever industry he works to affect next!

About RESCUECOM:

RESCUECOM provides computer repair and computer support, 24/7: Meeting every tech support need including data recovery, virus removal, networking, wireless services, and computer support for all brands of hardware and software. For computer support or information on products, services, or computer repair, visit https://www.rescuecom.com or call 1-800-RESCUE-PC.

For More Information, Contact:

David Milman, CEO

315-882-1100

david@rescuecom.com

Filed under: business, david milman, Internet, news, performance, rescuecom