Redbox looks to tackle Netflix, weighs streaming video in addition to kiosk sales

Woe unto poor Blockbuster, the struggling DVD retailer that has seen its one-time category-leader status eroded by online- and streaming-movie purveyor Netfix.

The latest news, and possible next nail that could spell its doom: Bloomberg reports that Redbox, the kiosk-happy dispenser of $1 DVDs, is contemplating bringing its own business online.

While the entry of Redbox into that market may be a tad troubling to Netflix-although with 14 million subscribers and growing, it’s not much more at the moment than a burr under its corporate saddle-it’s just one more drain on the (mis)fortunes of Blockbuster, which continues to close stores and recently skipped a debt payment.

Redbox President Mitch Lowe told Bloomberg that the company, which currently has some 24,000 DVD dispensers, is looking at online delivery as a way to expand its catalog and customer base.