Here, you can buy pirated DVDs on the sidewalks for a dollar (USD). If there were Redboxes here, people would automatically switch from buying pirated DVDs to Redbox.
FYI, I am from the Philippines and pirated DVDs are so rampant here that they sell it publicly outside schools, and in some malls...
guess what the studios did? they released DVDs, for sale, at about the same price (25 rupees) - not the latest films, but many recent titles.
What the studios don't realize is this - they wont lose anything by reducing the prices because a) piracy will come down b) the sheer volume of sales, will make up for the price reduction.
Indian market is supremely price sensitive, so Indian companies aim for volume. The same can and will work in US too, if only the studios have the common sense to try it.
With Redbox on the other hand, if it is available just around the corner or at least in places with security guards (less likely to be vandalized, etc.), then I'm pretty sure that the ones who sell illegal copies will go out of business in weeks.
This is valid mostly for regional movies. Legit English DVDs of popular movies from western studios are sold for around 600-700 rupees (around 15 dollars), so the market for pirated copies of such movies is pretty large.
It seems like Hollywood prefers that we pirate new releases.