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Vending | UK
Analysis
ern Colorado. We gener-
ally agree with the TNR
findings, but we find the
estimates conservative.”
TNR’s survey indicates
US
that 60 per cent of current
DVD renters are interested
in renting titles from a DVD
rental machine, but only 5
Over the next five years, per cent of respondents
DVD kiosks could generate had actually rented a DVD
as much as $1bn in in this fashion. One-third
revenue, representing 10 of those surveyed said they
per cent of the traditional were aware of the kiosk
rental market, according concept, and about one-
to a survey commissioned third of DVD renters are
by kiosk firm TNR Enter- frequent shoppers at
tainment. grocery outlets, where
Rival Redbox, owned by many kiosk companies,
Coinstar and McDonald’s, including TNR and
meanwhile, has even more Redbox, have placed their
aggressive projections, machines.
forecasting kiosk DVD TNR primarily locates
rentals will reach $3bn its kiosks inside grocery
this year. stores.
In 2007, sources esti- “There are several com-
mate, DVD rental kiosks pelling factors supporting
should generate $200m to the significant migration
$250m, or about 3 per cent from conventional rental
of the $7.5bn DVD rental venues,” said Richard
market. Cohen, TNR Entertain-
Now at more than 2,700 ment CEO. “Combined
outlets, Redbox is opening with installation forecasts
up hundreds of new loca- of 25,000 or more retail
tions each week inside sites over the next three
grocers and McDonald’s years, these factors reflect
restaurants. The company a market potential for the
recently launched alternative kiosk
machines in three new approaching $1bn.”
McDonald’s markets: TNR will use these find-
Jacksonville, San Antonio ings to expand its rentals
and southern Colorado. at existing locations. Tony
“In each of these new Sciolla, TNR chief market-
markets, we’ve instantly ing officer, stated: “With
become the No. 1 renter of our expanded knowledge
DVDs as measured by of what consumers want,
number of locations,” said we can successfully
Greg Waring, Redbox VP of achieve our ultimate goal -
marketing. “We’ve opened increasing same-store
up 70 outlets in Jack- sales from kiosks for our
sonville, 81 in San Antonio retail partners and the
and 26 locations in south- company as well.”
DVD vending to be launched in UK supermarkets
Observing the
ighteen DVDX- Coinstar, the company that deducted from a customer's ued. “They want to be able to Home Entertainment want to
press machines owns Redbox, is trialling a UK bank account if it has not been do it on impulse with the impose a 30-day delay before
success of DVD
are to be given a version called DVDXpress at returned after 15 days. No minimum of fuss. The price is new films can be stocked at
vending
E
trial at Tesco 18 Tesco supermarkets. If this membership is required, but a low because it’s a kiosk and the kiosks, and have taken
stores across proves successful, Coinstar £9.99 monthly subscription you haven’t got the rent and their case to the courts.
machines in the Britain. will roll out the kiosks nation- offers an unlimited number of staff costs of a store.” Redbox is suing them as a
US, supermarket
Machines that dispense ally. DVDs every month. The automated kiosks have result.
DVD films for £1.50 a night are Customers pay by credit or In the US, it is estimated that been credited with boosting The kiosks could rival the
giant Tesco is set
poised to launch in the UK debit card and can rent up to Redbox and similar compa- the US DVD rental market web-based LoveFilm.com,
to trial 18 such
after proving enormously four DVDs at one time, return- nies will control almost 30 per during the economic malaise. which posts DVDs to 1.5m UK
machines in the
popular in the United States. ing them to any machine. The cent of the rental market by In the first half of this year, US subscribers. However, Love-
The automatic kiosks, kiosks hold 300 movies, and the end of 2010. “People who spending on DVD and Blu-ray Film’s Simon Morris stated:
UK. known as Redboxes, are stocks are replenished use the kiosks tend to be film rentals rose by 8 per cent “We’ve got 65,000 films and
installed in 18,000 locations weekly. Films can also be casual viewers who don't while sales fell 13 per cent. games and a service which
across America including at reserved online and collected want to be tied down to sub- Warner Home Video, 20th allows you to watch films
newsagents, supermarkets, from a machine later. scriptions or membership Century Fox Home Entertain- online. The kiosks won’t have
restaurants and other retailers. To prevent theft, £25 is fees,” the spokesman contin- ment and Universal Studios the same range.”
GamesWorld | 18 | October 2009
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