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C. Ignore it until it goes away


"Hollywood studios are split over Redbox, the $1-per-night DVD rental kiosk company: They could supply it with cheap wholesale discs and ride its massive growth, or starve it in the hopes of preserving higher-priced purchases."

The question isn't whether $1 rentals will starve purchases, the question is how long will $1 rentals of physical products last once other available options become more widespread.

Choosing between cheap DVD rentals or higher-priced DVD sales in today's world is like choosing between Maxell XLIIS or TDK SA in 1992: A change was coming that would make such choices completely irrelevant.

“C. Ignore it until it goes away”