I have a hard time believing that Redbox had much of an impact on Blockbuster, and they certainly weren't changing the video rental paradigm.

Netflix's original DVD-rental by mail business no doubt ate into Blockbuster's business to some degree, and with their huge inventory was more of a head-on competitor than Redbox which could only offer a vending-machine full of options - the most popular ones.

What really killed Blockbuster was streaming video, not just a way of "automating" the DVD rental business - it was the paradigm shift, similar to the mobile banking vs ATM shift that TFA describes.