Why RedBox Rocks


How DVD Kiosks Are Changing The Video Rental Business


DVD kiosks from Blockbuster, RedBox and DVDNow seem to be popping up everywhere these days. Within 50 miles of where I’m sitting there are over 80 DVD kiosks—and for good reason—the small DVD rental locations are more convenient and less expensive than their traditional movie rental store counterparts and movie theater tickets.

Like I said, it’s cheap. The cost to rent a DVD from a kiosk is usually between $1 to $3 dollars for 24 hours. Subsequent rental days are usually around $0.99. Most DVDs available are new releases. For the average price of a movie ticket, $7.89 according to the National Association of Theater Owners, you can rent one new release for a week. For the owner of the kiosk it’s less expensive, too. No employees and no brick and mortar location means less overhead and more revenue.


Secondly, it’s convenient. DVD kiosks are everywhere: airports, fast food franchises, supermarkets, gas stations, drug stores, and famous places like the Empire State Building.


DVD kiosk-adjacent businesses also benefit from the concept’s popularity. For example, a number of RedBox locations are located near a McDonald’s. You can pick up dinner and a movie for less than what you’d pay to walk into a movie theater. Some DVD kiosks, like those from DVDNow, have advertising options further cushioning an owner’s income stream, and the financial benefits don’t stop there.


According to thestreet.com, Coinstar, the company behind RedBox, boasted substantial first quarter earnings in 2011 which are projected to continue. The only problem? RedBox (and Blockbuster for that matter) aren’t franchises. Unless you work for RedBox (i.e. Coinstar) or Blockbuster you can’t have a piece of the million-dollar DVD kiosk revenue pie.


That is unless you own a DVDNow kiosk.

Enter DVDNow, a DVD rental kiosk that’s fast, convenient, inexpensive and most importantly, a viable source of income for a franchisee. In addition to renting movies, DVDNow users can also purchase DVDs and rent video games, too. DVDNow’s design allows for businesses to advertise their services using an integrated HD television and signage on the front of the kiosk providing franchise owners with additional income opportunities.