Where do you get your movie rentals from?

Movie rental stores are competing with movies on demand, Netflix, and the Red Box, a kiosk in many grocery stores that offers one-dollar rentals. When it comes to movie rentals, the little red machine is getting a lot of attention.

“I prefer going to Red Box because if you’re going to watch a movie, you know I can only watch a movie once and then I’ve seen it so spending a lot of money for rental for a couple days really isn’t worth it for me,” said Michael Farrell of Wilmington.

Red Box is basically a vending machine for movies. Once you choose your movie, you’re going to check out… just swipe your credit card, and the machine will charge you a dollar for every night that you have it rented out, and you can return the movie to any of the Red Box locations.

You can also rent video games for two dollars.

Red Box has its disadvantages. You can’t rent old movies or blu-rays and some new releases aren’t offered, either.

Redbox is the fastest growing movie rental service in the country, which may be part of the reason why Blockbuster’s 2nd quarter earnings were down twenty percent.

But they’re finding new ways to stay in the game. “Blockbuster has a special where you can pay $10 for a week and get as many movies as you want, one at a time, back and forth,” said Ed Rugenstein.

Blockbuster has also created the same kiosk concept as Red Box, called Blockbuster Express. They plan to install 10,000 machines by the end of 2010. They also offer blockbuster online, to stay competitive with Netflix.

Red box is trying to offer a wider selection of new releases. They’re actually suing 20th Century Fox for waiting a month to release their movies, saying it prohibits timely rental access to customers.

Red box is in a similar law suit with Universal.