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Hacking NetFlix

DVD Rental Kiosks Take 1% of Rental Market

The Chicago Sun-Times has a story about Redbox and the rise of DVD rental kiosks, A Hit Right Out of the Box.

It’s really amazing that just three or four years ago, kiosk rentals weren’t significant. They just weren’t a factor,” said Sean Bersell, an EMA vice president. He added that while a 1 percent market share nationally appears small, in some areas of the country, this number could be as high as 7 percent.

“Now, they are a growing segment of the market and are going to continue to grow,” Bersell said.

In 2002, Redbox deployed a modest 12 kiosks in the Washington, D.C., area. Today, the privately held company boasts 4,900 locations throughout the U.S. and Puerto Rico.

Originally created in McDonald’s Corp.’s venture lab, executives at the fast-food chain thought by adding value to the restaurant, they could increase the number of visits.

Have you rented from a DVD kiosk?

September 26, 2007 | Permalink

Comments

I’ve rented from a DVD kiosk a couple of times. I think they’re a great supplement to Netflix, especially if you have one of the lower plans. I usually watch just a few movies a month, but every few months, I might want to have a marathon movie night. I wouldn’t want to pay for a larger Netflix plan just for the occasional extra movie or two (and it’s a hassle to change your subscription and then change it back later).

I used to go to Blockbuster for this kind of thing, but I’ve grown to hate their stores. I have to allot at least 30-45 minutes because they never have enough staff (or they’re too busy talking about their weekends to help anyone). With a kiosk, I can have my movie and be on my way in 5 minutes.

However, it wouldn’t replace Netflix for me because of the limited selection. Even with the limited number of movies to choose from, they’re often out of the popular ones.

Can anyone with experience elaborate on payment, specifically credit cards? I pass a kiosk every time I leave the nearest grocery store (I think it’s a competitor of Redbox, not sure which), so it would be convenient geographically. My average cost of discs from Netflix is about $1.75, so paying a couple bucks to have one of these for a few days makes sense, given the impulse factor.

I also see on their website that you can order a movie online and then collect at the kiosk.

The Wegman’s supermarket near me eliminated their DVD rental section and installed a Redbox out by the CoinStar and can return machines. If I didn’t live 20 minutes away from the store I would probably start picking up new releases, but since I only make it out that way every week or two it’s just not worth it.

I love the idea – and there’s a RedBox about 2 miles from home – but I haven’t rented from them yet myself.

Based on what friends tell me, RedBox rentals are a dollar a day. You can keep disks as long as you like, but the per diem will add up. It’s a good deal, especially for recent releases, but only if you return the disk within a day or two.

I absolutely love RedBox. I use it all the time along with my Netflix account. If you go to their website and sign up for text messages, you get a free rental code every monday.

I just saw one of these for the first time this past weekend in a McDonalds in Lake City, FL.

The few times I used it, I loved the sevice. I still keep NF as my main source of entertainment but I think they are doing a great service and will only cause more competition which can only help us the consumers.

I’ve been thinking about using this for movies that are “Very Long Wait” in my queue (if any are available) since there’s a McDonald’s with one about five minutes from my house, so the comments here (and the offer of a free rental every Monday) has convinced me to try it out. Thanks!

Another vote here for Redbox as a great supplement. The selection is lousy (about 50 titles per location), but the price is right and new titles are easily available.

I use Redbox for the mainstream blockbuster releases, and NF for the more obscure/artsy titles.

Isn’t paying per day kind of like a late fee which everyone hates anyways? Personally, I’ve never understood the attraction of Redbox kiosk with limited selection as opposed to the selection of Blockbuster.

At my Kroger’s they installed one of these and almost everytime I go buy it, folks are renting movies from it. It’s pretty crazy!

And Edward, I see your argument, but remember back when Blockbuster had overnight rentals for 3.50-4.00, that’s 4 days for redbox. It really is an amazingly simple concept.

“In 2002, Redbox deployed a modest 12 kiosks in the Washington, D.C., area.”

I remember when Redbox came on the scene here in DC. The Redbox was located a block from my place and I rented from it a few times. It was great. A $1 for a movie that I could walk to and drop off? Great deal.

I think it’s a great concept. good to see it doing well.

McDonald’s has Redbox kiosks at all their locations in my area, and on the rare occasions when I go there I often see the kiosk in use. So I think they are doing a good business.

I haven’t used them myself because I’m not that interested in current hits, but if I were then they would be a good solution for Netflux.

“I absolutely love RedBox. I use it all the time along with my Netflix account. If you go to their website and sign up for text messages, you get a free rental code every monday.”

Yeah, I used a couple of those codes and got billed anyway. I’m through dealing with this dishonest company that lies about things and charges for “free” rentals returned on time. Plus, the second disc I got was unplayable.

I havent used one. I have 2 near me. I checked out the system but didn’t find anything in their very limited selection.

I have a video store near me that rents videos for $1.99 for 7 days. It still beats the $1 a day and the selection is fantastic.

Don’t see the appeal of Blockbuster or Hollywood. They only focus on the top ten hits and then forget what a video store is about. VIDEOS. Remember the days when you would actually browse the aisles of a Blockbuster and find titles you’d want to rent. What happen to their stock.

The same goes with Redbox, its a Blockbuster in a box. I’m not impressed.

“. rents videos for $1.99 for 7 days. It still beats the $1 a day . “

That’s a fallacy of perceived value. If you’re willing to commit to retuning the rental within a day, RedBox is half the price (or about a fifth the price of BlockBuster), and that will appeal to a lot of people.

I don’t really understand how anyone can not “get” RedBox. It’s a vending machine. It has the same advantages as other vending machines, and in this case it can even be cheaper than the alternatives. Heck, I often go to the central post office to buy stamps, and I buy them from their vending machine rather than at the counter. It’s just more convenient. I’m sure if BlockBuster put vending machines at the entrance to their stores, a lot of people would use the vending machines rather than walk in.

In my area they have DVDXpress. Ive used them a few times.First time was with a free coupon. Later they emailed me a rent one get one free coupon or two. They are $1.49 + 8% tax for ONE NIGHT and recently added an “all you can rent” 1 at a time for $12.99 +8% tax. (They dont offer more than 1 at a time)

Frankly, Im addicted to not having to go any farther than my mailbox for movies and especially wont go for having to return it the next day.

Oh and I only pay 4% sales tax on my BB & NF subscriptions.

The other reason I will stick with the online services is the kiosks dont carry any of the TV shows series’ that I tend to watch a lot of.

“Remember the days when you would actually browse the aisles of a Blockbuster and find titles you’d want to rent. What happen to their stock. “

You must go going to the wrong Blockbuster store. The Blockbuster stores here in SoCal have many titles of every genre of film. I’ve never walked out of Blockbuster empty handed or disappointed with the film that I chose.

“I don’t really understand how anyone can not “get” RedBox”

Because RedBox is an old school late fee machine. Blockbuster has dropped the late fees, so why doesn’t RedBox have a flat fee rental price?

BTW, if the NFLX stock uptick has something to do with some sort of joint venture with RedBox, then NFLX is simply validating Blockbuster’s bus model by moving to a brick and mortar presence – a brick and mortar presence with daily late fees built in.

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The Chicago Sun-Times has a story about Redbox and the rise of DVD rental kiosks, A Hit Right Out of the Box. It’s really amazing that just three or four years ago, kiosk rentals weren’t significant. They just weren’t a factor," said Sean Bersell, an EMA vice president. He added that while a 1 percent market share nationally appears small, in some areas of the country, this number could be as high as 7 percent. "Now, they are a growing segment of the market and are going to continue to grow," Bersell said. In 2002, Redbox deployed a modest…

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