Redbox will survive as long as the price disparity between Redbox and streaming HD remains so large.
We get bluray Redbox movies for $1.50. An HD streaming movie costs $6.99. If the HD streaming movies come down to $3.00, we’d probably do those exclusively. But, people will spend 20 minutes and $2.00 in gas to save $1.50 in rental fees, so the streaming price will probably need to go lower than $3.00 to catch on.
My Netflix costs $9/month. Obviously I don’t care about HD.