Netflix offers "all-you-can-rent," one disk out at a time, mail-order rental of DVDs

The strategy used by Redbox seems to be more profitable compared to that of Netflix. When Redbox offers constant discount codes to minimize the disk prices to its customers, it motivates customers to purchase more. When a customer learns that they will save some amount of money after buying a specific product, they will refer the company to other potential customers. This means that Redbox, in our case, will have more customers, thus increasing the amounts of profits it obtains. In turn, increased sales improve the company's reputation, which contributes to business success.