Video rental has gone the way record stores are. It is sad that everything is electronic now and you lack the connection with the hardware.
I'm not surprised Redbox going under. There are far too many options renting movies. Granted their blu ray has the best quality but people don't care about quality nowadays.
I counted a few times how many titles were rented out at the machines and I bet their daily revenue is less than $100 per machine and that's not enough to keep this business going.
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